The European Commission has called on the 27 EU member states to conduct a comprehensive 15-month risk assessment of outbound investments in key technologies, including semiconductors, artificial intelligence (AI), and quantum technologies. This move is part of a broader effort to safeguard the EU’s economic security and prevent the transfer of critical technologies to potentially hostile foreign entities.
Overview of the Risk Assessment Request
The European Commission has requested that EU members review their companies’ investments in non-EU countries dating back to January 2021. The review should provide an interim progress report by July 2025 and a final assessment by June 2026. The aim is to identify any potential risks associated with technology transfers that could be exploited by rival states or military entities, especially in light of recent global security challenges.
Background and Rationale
This initiative is part of the EU’s ongoing efforts to bolster economic security, which have gained importance in response to multiple global crises, such as the COVID-19 pandemic, Russia’s invasion of Ukraine, and rising cyberattacks. The EU is particularly focused on technologies that could be leveraged for military or intelligence purposes by adversarial nations like China, which has raised concerns over technology leakage in the past.
The EU’s strategy, which was first laid out a year ago, includes more stringent oversight of foreign investments and exports, as well as enhanced controls on technology outflows. This is seen as a critical measure in ensuring that European companies do not inadvertently facilitate the advancement of hostile powers through uncontrolled technology transfers.
Potential for Further Action
The review will provide valuable insights into the scale of risks posed by current investment patterns and help the EU determine whether additional regulatory measures are necessary at either the national or EU-wide level. This could lead to more specific restrictions or guidelines governing investments in high-tech sectors that are deemed vital for the EU’s strategic interests.
