In light of today's increasingly challenging geopolitical context and rapid technological developments, it is necessary to take a proactive stance in safeguarding our EU economy. This entails preserving Europe’s strategic interests and keeping the EU market open to investments.
A recent Communication outlines key initiatives to boost the EU's economic security, focusing on promoting the EU's economic base and competitiveness, protecting against risks, and fostering partnership with like-minded countries.
Cross border investments
Non-EU investments are a driver of economic growth, but at the same time, they raise concerns due to excessive concentration or strategic takeovers in specific sectors considered of national interest.
The JRC monitors the main trends in cross border investments, specifically mergers, acquisitions and greenfield investments for the creation of new companies.
- EU Inbound Investments monitoring
Specifically, the JRC supports the screening of foreign investments transactions in the EU, analyzing the ownership structure of foreign investors and the EU target to uncover links with foreign governments and anomalous patterns in foreign investments that could threaten EU security or public order.
- EU Outbound Investments monitoring
Furthermore, the JRC studies outbound EU investments and patent transactions, conducting an in-depth analysis on a set of key technologies, notably Artificial Intelligence, Quantum, and Semiconductors.
Semiconductors global value chain
Global value chain has favoured the circulation of technological advancements but at the same time they have created dependencies on raw materials, and on intermediate and finished goods produced elsewhere in the world. An excessive dependence on other nations could compromise the EU’s economic security. For example, the recent global chips shortage has disrupted supply chains, resulting in product shortages ranging from cars to medical devices. Chips – also known as semiconductors – are the building block of all electronic product and play a central role in our economies. A better understanding of the risks of depending on non-EU products and technologies is thus crucial. Against this background, the European Chips Act Regulation was proposed as part of a broader package of measures for strengthening the EU’s semiconductor ecosystem.
The JRC analyses the semiconductors value chain and the role of the EU companies in this strategic value chain. The activity feeds the monitoring of the semiconductors ecosystem foreseen by Pillar 3 of the Chip’s Act. Specifically, the analyses aim to set up an early warning system to identifying and measure a set of signals that can anticipate future distress. Since being able to react quickly when a shock occurs is not enough, the project maps the key actors that belong to the semiconductors value chain.
The team behind the research
Francesca Erica Di Girolamo coordinates activities related to competitiveness and economic security, focusing on foreign direct investments, global value chains, and the impact of digital technological advancements on the economic and financial sector.
Andrea Ciani is an economic and policy analyst at the Joint Research Centre of the European Commission. He investigates the position of European companies in global value chains, focusing on the semiconductors’ production chain.
Maria Martinez Cillero is a Scientific Officer at the Joint Research Centre of the European Commission. Her research and policy analysis work focuses on topics such as firm performance, capital structure and investment, FDI, as well as other topics in corporate finance and market analysis.
Paolo Bonnet is an economist working on activities related to the analysis of the semiconductor value chain and EU economic security. His research areas include International Trade and Global Value Chains.
Elena Zaurino is an economist within the unit Economic and Financial Resilience at the Joint Research Center of the European Commission. Her research focuses on topics related to international trade and industrial organization with a focus on global supply chains.
