COVID-19 Crisis and Screening of Foreign Direct Investments in EU Privatized Companies

Abstract

This article examines how golden shares constitute an effective investment screening mechanism for the protection of EU strategic privatized companies from dubious and hostile foreign direct investments during the COVID-19 crisis. This investment screening is essential in order to secure that a foreign direct investment would not jeopardize the services of general interest offered by these privatized companies during the COVID-19 crisis. On the one hand, lawful golden shares could be used as an effective screening mechanism. On the other hand, unlawful golden shares infringing EU freedom of establishment could continue to screen and to apply to foreign investors from non-EU countries planning to invest in the capital of an EU privatized company.