International investment, the EU and EU-Australia relations: Between security and sustainability

Since 2009, the EU’s international investment strategy has been an important aspect of its broader external economic policy. While regulation of investment in the EU remains fragmented due to the complex division of competences between the EU and its Member States, there are several trends that can be noted in the EU’s approach to investment, as a response to a more hostile international context: a shift from openness towards enhanced non-EU investment controls; prioritising facilitation of sustainable investment over protection of EU investors abroad; and more broadly, investment tools supporting the EU’s de-risking and economic resilience agenda. In the Trump 2.0 era, strengthening cooperation with like-minded and reliable partners such as Australia is becoming even more pressing for the EU, with critical minerals representing a major intersection of interest.