Alfred Sant votes against framework for screening of foreign direct investments in the EU

Maltese MEP Alfred Sant broke with the line of the socialist and democratic grouping (S&D) at the European Parliament and voted against a proposal for a regulation establishing a framework for screening of foreign direct investments into the European Union. The proposal was discussed at the Economic and Monetary Committee of the European Parliament (ECON). The draft Regulation introduces the means for Member States and the Commission to request information to screen foreign direct investments that raise concerns for security or public order. It would cover an exchange of information system applied to strategic investments. By extension, it would give the Commission the possibility to screen foreign direct investment in EU member states before they are carried out in order to ascertain whether they will have an impact on EU programs.

A majority of the MEPs in ECON agreed with the Commission’s suggestions for screening of direct investment and exchange of information among Member States. However, there were also some reservations related to the Commission interfering with the decision-making processes of Member States and related to the safeguarding of commercially sensitive information. Dr Sant is the only Maltese MEP sitting on ECON.

“Better instead of implementing such proposals to reinstall controls on capital movements,” remarked the Maltese MEP during a working session on the proposal. “This proposal will create new political and bureaucratic barriers to investment which by being one-size-fits-all, will put smaller Member States at a disadvantage,” he said.

Dr Sant stated that the screening mechanism being envisaged would be poison for small EU states like Malta which are trying to attract foreign direct investments to their territories. Bigger economies would be better able to cope with screening and might indeed benefit competitively from it. Screening would negatively impact on the appetite of foreign firms to implement direct investment in places like Malta. Moreover, the sharing of information could concern sensitive information on investments in areas over which Member States might be competing with each other.

The proposal is expected to be discussed and voted on as a resolution at the Plenary of the European Parliament in June.

Maltese Version – ALFRED SANT JIVVOTA KONTRA PROPOSTA LI TISKRUTINJA INVESTIMENTI ESTERNI DIRETTI FL-UE

Il-Kap tad-Delegazzjoni Laburista fil-Parlament Ewropew Alfred Sant ma vvotax mal-linja li ħa l-grupp tas-Soċjalisti u Demokratiċi (S&D) u vvota kontra proposta li tistabbilixxi qafas li jiskrutinja investimenti esterni diretti fl-Unjoni Ewropea fil-Kumitat Ekonomiku u Monetarju tal-Parlament Ewropew (ECON). L-abbozz ta’ regolamentazzjoni jintroduċi għodda li permezz tagħhom l-istati membri u l-Kummissjoni Ewropea jkunu jistgħu jitolbu informazzjoni biex jiskrutinaw l-investimenti diretti esterni li jqajmu tħassib għas-sigurta` jew l-ordni pubblika. Ir-regolament ikopri sistema ta’ skambju ta’ informazzjoni applikata għall-investimenti strateġiċi. Jekk titwessa’ aktar tkun tista’ tagħti lill-Kummissjoni Ewropea l-possibilita` li tiskrutinja l-investimenti diretti esterni qabel l-istati membri tal-UE biex tiżgura hux se jkollhom impatt fuq il-programmi tal-UE.

Il-parti l-kbira tal-Ewroparlamentari fl-ECON qablu mal-proposta tal-Kummissjoni Ewropea dwar l-iskrutinju tal-investiment barrani dirett u l-iskambju ta’ informazzjoni bejn l-istati membri. Iżda, kien hemm ukoll xi riżervi relatati mal-indħil tal-Kummissjoni fil-proċessi tat-teħid tad-deċiżjonijiet mill-istati membri, kif ukoll mas-salvagwardji ta’ informazzjoni kummerċjalment sensittiva. Dr Sant huwa l-uniku Ewroparlamentari Malti li għandu siġġu fl-ECON.

“Aħjar mill-implimentazzjoni ta’ proposti bħal dawn ikun it-twaqqif mill-ġdid tal-kontrolli fuq il-movimenti tal-kapital,” saħaq l-MEP Sant waqt sessjoni ta’ ħidma fuq il-proposta. “Din il-proposta se toħloq ostakli politiċi u burokratiċi ġodda għall-investiment u minħabba li hi one-size-fits-all – tlibbes żarbun l-istess lil kulħadd – l-istati membri ż-żgħar biha se jitpoġġew fi żvantaġġ,” qal Dr Sant.

Dr Sant saħaq li l-mekkaniżmu ta’ skrutinju li qed jiġi previst ikun velenu għall-istati membri ż-żgħar tal-UE bħal Malta li jipprovaw jattiraw investiment barrani dirett fit-territorji tagħhom. L-ekonomiji l-kbar ikunu kapaċi jlaħħqu aħjar mal-iskrutinju u saħansitra jistgħu jibbenefikaw kompetittivament minnu. L-iskrutinju jkollu impatt negattiv milli jħajjar ditti barranin biex jimplimentaw investiment dirett f’postijiet bħal Malta. Aktar minn hekk, l-iskambju ta’ informazzjoni jista’ jkollu informazzjoni sensittiva dwar oqsma ta’ investimenti li l-istati membri jkunu qed jikkompetu kontra xulxin dwarha.

Il-proposta mistennija tiġi diskussa u vvotata bħala riżoluzzjoni fil-Plenarja tal-Parlament Ewropew f’Ġunju.