A new law will give the government the power to refuse foreign investment on board for reasons of safety and public order and to prevent “enemy actors” from gaining a foothold here.
The Government said the new Third Country Transaction Screening Act published on Tuesday “provides an opportunity to design and adapt a screening mechanism that suits Ireland’s needs”.
It is introduced to implement EU regulations.
The new law is intended to prevent other states from conducting espionage here and gaining access to information, data, systems, technologies or assets “which are of general importance for the security or public order of the state”.
The government has insisted that the new law will take an approach that “balances Ireland’s continued attractiveness as a location for foreign investment with a robust but adequate screening mechanism that protects security, public order and the ability of the state.” improved to respond to potential threats”. .
It will give the Secretary for Enterprise, Trade and Employment the power to “react to, and prevent or mitigate, threats to Ireland’s security or public order from certain types of foreign investment”.
“This law gives the government the power to protect security or public order from hostile actors who use ownership of or influence over companies and assets to harm the state,” the bill reads.
The new law, once passed, will also establish an Investment Screening Advisory Panel to inform and assist the Minister in relation to the screening of certain foreign transactions and there will also be an appeals process.
Ireland has been a major beneficiary of foreign direct investment (FDI) for decades.
The IDA said this summer that the level of foreign direct investment in Ireland this year is at a record high.
But outgoing IDA chief executive Martin Shanahan warned of a dark horizon.
“Volatile markets, the future trajectory of the Russia-Ukraine war, inflation and monetary policy, ongoing disruptions in global supply chains, UK-EU tensions and geopolitical developments are all contributing to uncertainty in the global FDI environment,” he said.
But he remains optimistic about the future possibilities.
“Despite the serious global challenges and uncertainties ahead, FDI is well positioned to continue to make a significant contribution to Ireland’s prosperity and future success.”
https://www.independent.ie/business/irish/state-adopting-european-law-to-screen-hostile-foreign-investment-41886102.html State passes European law to screen ‘hostile’ foreign investments