9
Nov
2022
Watch
One-minute speeches on matters of political importance
The European Union, as one of the most desirable destinations for foreign direct investment, is open to foreign capital. However, this openness is not and must not be unconditional. The Foreign Direct Investment Screening Regulation (FDI Screening Regulation) and regulations restricting the possibilities to dispose of Russian-owned assets are in place. Surprisingly, the news is that 43% of the shares in the company of systemic importance for Croatia were allegedly taken over by an investor from a third country, without any competent authority being aware of it. The importance of this company for the Croatian economy is manifested in the fact that it employs more than 45 thousand people and manages important agricultural land. Given that the acquisition took place without any knowledge of the competent authorities, the question arises as to whether the EU legal framework is sufficient to ensure the safety of European assets. I therefore call on the Commission to consider further mechanisms to ensure that companies of systemic importance are protected from suspicious and uncontrolled acquisitions.