Foreign Direct Investment and Technology: Europe’s Shift from Screening to Steering

Foreign direct investment (“FDI”) in advanced technology is no longer treated in Europe as a neutral flow of capital. In sectors such as aerospace, AI, semiconductors, and secure connectivity, ownership, access rights, and governance are increasingly viewed as proxies for control over critical capabilities. The EU is moving beyond classic risk-based screening toward a broader model of strategic steering and policy and legislation show a common logic: Europe remains open to foreign capital, b