Non-Paper No 8/2025: Balancing Innovation and Sovereignty: The Role of FDI Screening and FSR in Shaping Strategic Technologies

Written by Francesco Giovanni Lizzi, CFIS 25 Programme Sherpa.

The European Union is at a strategic crossroads as it seeks to enhance its strategic autonomy in key high-tech sectors amidst increasing geopolitical tensions and technological competition. The European regulatory tools, particularly the Foreign Direct Investment Screening Regulation and the Foreign Subsidies Regulation, aim to strike a delicate balance between attracting foreign capital and safeguarding critical assets. This background paper sets the stage for a broader discussion at CFIS 25 on how these regulatory frameworks contribute to shaping strategic autonomy without isolating the EU from valuable international cooperation. The central tension between balancing openness and protecting European high tech frames the current debate on Europe’s future role in global tech leadership.