COVID-19 Impact to Foreign Direct Investment in the EU

    View Author April 2020

    On March 25, 2020, the European Commission published updated guidance on foreign direct investment (FDI) for EU member states, and the free movement of capital from third countries, as well as the protection of strategic assets in Europe. The unfolding global coronavirus disease 2019 (COVID-19) has brought multiple widespread effects to the EU economy. The updated guidance, for the first time, calls member states that currently lack FDI screening procedures to introduce necessary measures, and highlights the importance for safeguarding EU industries and strategic sectors from FDI, especially those that have been impacted by the pandemic. Our publication summarizes the highlights from the Commission guidance.