Bendros Europos Sąjungos investuotojų patikros sistemos kūrimas ir jos įtaka Lietuvoje galiojančiam teisiniam reguliavimui ; Creation of a Coordinated European Union Investor Screening System and its Impact on the Regulatory Framework in Lithuania

Abstract

The scope and procedures governing the screening of foreign investors and related transactions in Lithuania are established by the Law on Protection of Objects Important to Ensuring National Security of the Republic of Lithuania. Considering the existing legislative framework, the year of 2020 is important because Regulation (EU) of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union became fully operational on 11 October 2020. For many years, the European Union, unlike many of the world's other major economies, did not have a single centralized investor screening mechanism to assess security and public order interests. However, such regulations were in force at the national level in more than half of the EU Member States, including Germany, France, the UK, Italy, Poland, Lithuania and Latvia. Based on the provisions of the EU Regulation, national FDI screening mechanisms in the EU Member States must meet minimum standards starting from 11 October 2020. The EU Regulation does not oblige Member States to adopt FDI screening mechanisms. Moreover, the final decision on whether or not to screen a particular investor or transaction remains with the Member States. However, where the Member States have such mechanisms in place, the EU Regulation lays down several minimum requirements, including transparent and non-discriminatory rules and procedures, clear deadlines and the possibility to appeal against an FDI screening decision. One of the fundamental elements of the EU Regulation is the establishment of an EU cooperation mechanism, which allows the European Commission and the Member States to share information and views on ongoing FDI screenings on a national level. There is no doubt that this Regulation is the first attempt to regulate FDI regime at the EU level. The new Regulation has become an important factor to be taken into account when considering transactions involving foreign investors in the EU. It has to be seen how closer coordination between EU governments and strengthened investment controls to be developed further in the coming year.