Brussels, 29 January 2025 – The European Initiative for Energy Security (EIES) published a new briefing, “Strengthening Europe’s Strategic Sectors: Coordinating Investment Policy for Resilience and Predictability”. The brief calls for the European Union to strengthen its regulatory arsenal through stronger trade and investment defence tools. 

The EU has long championed trade liberalisation, but today’s fragmented global order has amplified risks to its open economies. While FDI drives economic growth, it can also threaten critical sectors such as transport, energy, and digital infrastructure. Risks include supply chain disruptions, unauthorised data transfers, cyber threats, and environmental concerns such as China using economic interdependence as a tool of coercion. Empowering the European Commission to safeguard the EU’s strategic interests as well as to strengthen and streamline FDI screening can enhance regulatory consistency and prevent loopholes. 

Substantial misalignment in FDI screening regimes persists across member states. Petya Barzilska, EIES Policy Lead, and author of the brief said: “Strategic sectors require more attention, allowing the EU to continue to be an open investment bloc, while mitigating risks and securing its competitiveness.” 

Key takeaways of the brief include: 

• The EU should speed up the horizontal and vertical alignment of different trade and investment policies – including joint ventures with third countries – affecting critical infrastructure and strategic sectors, particularly energy and transport. 

• The new EU foreign direct investment screening mechanism needs to come into effect as soon as possible, preferably in 2025. 

• The European Commission’s role should be enhanced to support improved harmonisation and coordination across the EU regarding the implementation and enforcement of screening practices, risk assessments and enforcement when its interests are affected. 

• Greater consistency across the EU would improve predictability for investors, while protecting its economic and public interests. 

About EIES    

The European Initiative for Energy Security (EIES) advocates for secure pan-European and national energy policies, dedicated to fostering collaboration between government and industry leaders. EIES seeks to address critical energy challenges and champion comprehensive solutions for the benefit of Europe's energy security, transition, and industrial competitiveness. EIES works with the Energy Security Leadership Council-Europe (ESLC-Europe), composed of retired and active military, political and business figures, to achieve these goals.    

Contact: Tim Kirstein, Associate – tkirstein@secureenergy.org