Federal Minister Habeck welcomes the European Commission's new economic security package

Today, the European Commission presented a legislative package to implement its European Economic Security Strategy published in June 2023.

The economic security package includes

• the EU investment screening regulation
• a white paper on dual-use export controls
• a white paper on foreign investment monitoring
• a recommendation on improving research security and
• a white paper on dual-use research funding

Federal Minister Habeck said: Economic security is something that we cannot take for granted. The effects of the pandemic and Russia’s war of aggression on Ukraine have made us aware of our dependencies and vulnerabilities. This is why we are increasing our vigilance with regard to investments and foreign trade. And we are developing our foreign trade activities on a broader basis. Wherever necessary, we are taking steps to safeguard our sovereignty and freedom of action and are encouraging companies to set up in Germany, especially in the field of battery production, renewable energy, semiconductors, green steel and hydrogen. To make this all happen, we need to develop appropriate policies and a legal framework. The economic security package of the Commission has laid the foundations for this.

The revision of the EU Foreign Direct Investment (FDI) Screening Regulation will help to make the investment screening instrument mandatory in all Member States. The regulation also stipulates that cooperation at EU level should focus more strongly on truly sensitive acquisition cases.

The White Paper on Dual-Use Export Controls (i.e. goods that can be used for both civilian and military purposes) proposes adjustments to the list of goods in the dual-use regulation. In addition, the evaluation of the existing regulations is to be brought forward by two years to 2024.

The White Paper on Outbound Investments is intended to ensure that EU Member States gather and analyse data on investments by companies in third countries. The aim is to gain a better overview of activities in certain sensitive technology sectors (advanced semiconductors, artificial intelligence, quantum technology and biotechnology).

The Recommendation on Research Security provides that EU Member States should better coordinate their activities in order to strengthen resilience in the area of research and development. It also sets out that security aspects should play a greater role in research institutions and universities.

The White Paper on enhancing support for research and development involving technologies with dual-use potential serves to examine the extent to which research programmes can be expanded or launched in order to promote research into technological goods with dual-use potential within the EU.

The economic security package is the first package of measures adopted by the EU following the European Economic Security Strategy presented on 20 June 2023. The European Commission’s package pursues a three-pronged approach to “Promote, Protect, Partner", seeking to strengthen the competitiveness of European companies, protect them against risks (de-risking) and foster cooperation with partner countries.