EU Initiates Risk Assessment of Outbound Tech Investments to Safeguard Economic Security

EU Launches Initiative to Assess Outbound Tech Investments

The European Commission has taken a significant step towards safeguarding its economic security by requesting its 27 member states to conduct a comprehensive risk assessment of outbound investments in critical technologies. This 15-month review process, announced on Wednesday, focuses on investments in semiconductors, artificial intelligence (AI), and quantum technologies 1

Scope and Timeline of the Assessment

The assessment will cover investments made by EU companies in non-EU countries, dating back to the beginning of 2021. Member states are expected to provide a progress report by July 2025, with the final report due in June 2026. This initiative is part of a broader strategy to enhance the EU's economic security, which was initially outlined a year ago 1

Motivations Behind the Initiative

The EU's decision to scrutinize outbound investments stems from various factors:

Lessons learned from the COVID-19 pandemic
Geopolitical tensions, including Russia's invasion of Ukraine
Increased cyber and infrastructure attacks
Concerns about potential risks during a second term of President-elect Donald Trump

A primary concern for the EU is the potential leakage of sensitive technologies that could be exploited by hostile military or intelligence services 1

Focus on Critical Technologies

The risk assessment specifically targets three key technological areas:

Semiconductors
Artificial Intelligence (AI)
Quantum technologies

These sectors are considered crucial for the EU's future economic and strategic interests 2

Potential Outcomes and Future Actions

The European Commission has stated that this review will inform decisions on whether further action is needed at EU and/or national levels to address any identified risks. The initiative aims to prevent key technologies from "falling into the wrong hands" and to boost the bloc's overall economic security 2

Broader Context of EU Economic Security Measures

This risk assessment initiative is part of a larger set of plans announced by the EU a year ago. These plans include:

Closer scrutiny of foreign investments
More coordinated controls on exports
Monitoring of technology outflows to rival nations, with a particular focus on China

The EU's approach reflects a growing awareness of the need to protect strategic assets and technologies in an increasingly complex global landscape 1