Cannot find an appropriate thread to post this. But since the article mentioned "coronavirus (Covid-19)", "health infrastructure" and "manufacture of health care products", this thread looks as good as any.
Mod, if there is an EU Economy thread, feel free to move it there. I tried (not very hard) but could not find one.
Key Points
- European authorities issue communications calling for vigilance regarding potential predatory acquisitions.
- The request comes as the EU is preparing to implement regulations to include the screening of acquisitions and investment on security and public order grounds.
The EU has warned member states to remain vigilant on foreign direct investment (FDI) and the movement of capital from third countries during the current coronavirus (Covid-19) crisis in an effort to protect strategic industries.
"The Covid-19 related emergency is having pervasive effects on the economy of the E U. As part of the overall response, the European Commission also singled out the issue of foreign direct investment screening. Among the possible consequences of the current economic shock is an increased potential risk to strategic industries, in particular but by no means limited to healthcare-related industries," the Commission said in a communication on 25 March.
As a result, member states have been asked to make full use of FDI screening mechanisms to protect the healthcare sector, the supply of critical inputs, as well as other sectors involved in supporting efforts to fight the Covid-19 pandemic.
Noting that national screening mechanisms are in place for 14 of the 27 member states, the Commission called on governments lacking such regulations to create "a full-fledged screening mechanism, and in the meantime to use all other available options to address cases where the acquisition or control of a particular business, infrastructure or technology would create a risk to security or public order in the EU, including a risk to critical health infrastructures and supply of critical inputs."
Of key concern to the Commission in the latest update has been the risk of the acquisition of companies involved in the manufacture of healthcare products or related industries such as research establishments.