Introducing: The CELIS Non-Papers on Economic Security

Authors: Liam McGrath and Simon Shargi-Erdmosa (CELIS Institute).

We are excited to announce the CELIS Non-Papers on Economic Security, an occasional paper series from the CELIS Institute offering expert analysis and insights at the intersection of economic security, open markets, and competitiveness. The series is intended to cut through the noise of periodic commentary and complement jurisdiction-specific reporting by offering deeper analysis of cross-cutting trends and structural questions in the field of economic security. As such, these publications will complement the CELIS blog, with its focus on short-form commentary and analysis, as well as the CELIS Country Report Project, which provides structured overviews of investment screening regimes across a wide range of jurisdictions.

As with all CELIS publications, the series aims to inform and engage stakeholders across government, business, academia and private practice, owing to the multi-perspective approach which is central to our editorial philosophy. The goal is to ensure that each contribution speaks meaningfully to the diverse range of actors which are shaping the emerging field of economic security.

Against this background, we are pleased to introduce the first contributions in the CELIS Non-Paper Series. The first six submissions are written by our CFIS 24 Sherpas and summarise the high-level discussions that took place during the various panels of the CELIS Forum on Investment Screening’s (CFIS) latest edition, held in Paris in October, 2024. The seventh paper in the series touches on a distinct and highly acute theme: EU Economic Security amid a shifting transatlantic order. Together, these first publications offer a first glimpse of the type of content that can be expected from the CELIS Non-Papers– forward-looking, policy-relevant analysis grounded in expert insight. The remainder of this post offers brief summaries of the first seven papers in the series.

Non-Paper No 1/2025 – The Current Global Regulatory and Investment Environment – The OECD Countries’ Perspective on Economic Security

CFIS 24 brought together a diverse panel of experts to discuss the regulatory and investment challenges from the perspective of economic security. The first panel, titled ‘The Current Global Regulatory and Investment Environment: The OECD Countries’ Perspective on Economic Security’, featured experts from four OECD members: the United States, the United Kingdom, France and Chile. The discussion covered aspects such as: (i) how to understand economic security and what are the threats to economic security from the perspective of OECD countries, (ii) whether economic security can only be protected based on national security considerations and how to respond to the necessity of cooperation, as today’s economic security issues require collective action, (iii) what the future of economic security regulations might look like, and (iv) where the balance lies between security and growth. Dominika Pietkun summarises the panel’s main insights and indicates strategic directions in the field of economic security from the perspective of OECD countries.

Non-Paper No 2/2025 – Securing Europe’s Future: Investment Screening and Economic Security in the Context of EU Enlargement

The increasing involvement of certain foreign interests in EU candidate states poses a significant threat to their economic security. In several of these countries, Russia has employed a destabilising strategy of leveraging economic assets as tools of political influence. Meanwhile, China’s growing investments in strategic infrastructure, including transport, technology, and energy, have sparked concerns over transparency and political leverage. A contributing factor in this regard is the lack of comprehensive investment screening mechanisms (ISMs) in EU candidate countries. The EU’s FDI Screening Regulation provides a framework for member states to manage foreign investment risks; however, the EU has no unified strategy for supporting the implementation of ISMs in candidate countries.

These issues formed the backdrop for Panel 2 at CFIS 24, where government representatives, business leaders and academics discussed challenges related to economic security and the need to introduce investment screening in EU candidate countries. Liam McGrath draws on the conclusions from the panel to provide recommendations on measures to be taken next to support EU candidate countries in their efforts to implement investment screening.

Non-Paper No 3/2025 – Preserving the Battlefield Gap in the Area of Technology – Between Export Control and Outbound Investment Screening

As geopolitical tensions intensify and technological advancements accelerate, export controls and investment screening policies are undergoing significant transformation. During CFIS 24, a panel discussion titled ‘Preserving the Battlefield Gap: Between Export Control and Outbound Investment Screening’ brought together a diverse group of experts. Held under Chatham House Rules to encourage open and candid dialogue, the panel explored these evolving challenges. Simon Sharghi-Erdmosa captures key insights from the discussion, focusing on the motivations, challenges, and opportunities for collaboration in navigating export controls and investment screening within a complex global landscape.

Non-Paper No 4/2025 – Investment Screening in the Defence Sector: Promoting National Security and Neoliberalism

In his submission, Neil Noronha reflects on the CFIS 24 panel discussion on investment screening in the defence sector. The discussion examined how governments and industry define critical sectors, the importance of cooperation in shaping effective screening regimes, and the challenge of balancing security with openness. The panel also considered the impact of foreign competition and emerging technologies such as AI on future screening practices.

Non-Paper No 5/2025 – Sovereign Wealth and Pension Funds & Investment Screening

The CFIS 24 panel discussion on ‘Sovereign Wealth and Pension Funds & Investment Screening’ gathered experts to explore the evolving roles of sovereign wealth funds (SWFs) and pension funds (PFs) within the global investment landscape. In this write-up of the proceedings, Simon Sharghi-Erdmosa synthesizes key insights from the discussion, highlighting the geopolitical challenges, regulatory shifts, and strategic considerations influencing these funds. The confidential nature of the discussion, held under Chatham House Rules, allowed for candid exchanges among industry experts, policymakers, and institutional investors. These insights offer a nuanced understanding of the trends shaping sovereign and pension fund investments. With assets under management exceeding $11 trillion, SWFs and PFs play a pivotal role in global economic stability and market resilience. In recent years, they have evolved from traditional investment strategies to more sophisticated approaches, including direct investments, strategic partnerships, and sustainability-focused portfolios. Their growing influence positions them as key actors in shaping market trends, regulatory policies, and investment practices amid geopolitical tensions, evolving regulations, and rising sustainability expectations.

Non-Paper No 6/2025 – The EU Foreign Subsidies Regulation

This submission by Dominika Pietkun summarises key takeways from the final panel at CFIS 24, which was dedicated to the European Union’s Foreign Subsidies Regulation (the “FSR”). The FSR entered into force on January 12, 2023, introducing a new legal instrument aimed at combating distortions of competition in the EU internal market caused by foreign subsidies. The FSR has been fully applicable since October 12, 2023, meaning that during CFIS 24 the FSR was discussed almost exactly on the first anniversary of its full application. The panel focused on the following issues: (i) examining the reasons for introduction of the FSR, (ii) discussing how the FSR operates in practice and what are the challenges companies face in compliance with the requirements of the FSR, (iii) analysing the FSR’s impact on competition, EU market and specific industries, and (iv) commenting on the long-term economic and strategic implications of the FSR.

Non-Paper No 7/2025: European Economic Security Amid a Shifting Transatlantic Order

The Trump administration’s rapid diplomatic, military, and economic recalibration toward Brussels has posed unprecedented challenges to EU economic security in a transatlantic context. Simon Sharghi-Erdmosa explores how the unfolding transatlantic shift affects EU economic security, focusing on the core risks and strategic pillars outlined in the 2024 update of the European Economic Security Strategy. The paper argues that Washington is treating the EU not as a partner but increasingly as a pressure point to compel alignment with US strategic objectives. It analyzes how tariffs, export controls, and defence dependencies are reshaping the EU’s options in trade, technology, and military security, pushing Brussels to confront the dilemma of how far to recalibrate, align, or diverge from the US. In this context, the EU faces critical decisions over the future of its economic security and resilience as it navigates an increasingly unpredictable transatlantic order.