On 26 May, the European Commission launched a public consultation on the protection and facilitation of cross-border investment within the EU. Private investment is essential to finance Europe’s economy and businesses. It contributes to the creation of jobs and to the diversification of services and products in our Single Market.
Mobilizing private funding will be particularly important to cope with the negative economic impact of the coronavirus pandemic. If we are to encourage individuals and businesses to invest across the EU and to benefit from the Single Market, then our investment environment needs clear and coherent rules, with effective remedies. As announced in the New Industrial Strategy for Europe, the new Action Plan on Capital Markets Union will include an initiative to strengthen intra-EU investment protection and efforts to unlock more diverse sources of funding for European businesses, especially SMEs.
Following the recent termination of the intra-EU Bilateral Investment Treaties, today’s public consultation invites EU citizens and other stakeholders to express their views on the strengths or weaknesses of cross-border investing in the EU. The aim is to assess the current framework of investment protection, including both substantive rules and dispute settlement mechanisms.
An Economy that Works for People Executive Vice President Valdis Dombrovskis said: “We need to do everything we can to help Europe recover from the coronavirus pandemic. Fostering cross-border investment within the EU is now more important than ever. If we are to increase cross-border investment, we need to increase investors’ confidence. I encourage as many stakeholders as possible to share their views and experiences concerning cross-border investing in the EU and how it can be improved.”
The public consultation will feed into the Commission’s upcoming policy initiatives. Respondents are encouraged to provide as much information as possible here. The consultation will remain open until 8 September 2020.