| Abstract [eng] |
Foreign investment is highly important for the country‘s economic and social development. Along with the foreign investment the number of new jobs is increasing, the conditions for innovations, technological development is becoming more favorable, production efficiency is increasing and all the needed industry is developing. However, with these positive goods foreign investment also poses risks that a foreign investor, who does not meet the interests of the national security, will harm the country‘s national security or public order. This fear brings a desire for European Union, as well as Lithuania, to create not a policy, which would make it easier to attract investors and improve the conditions for foreign investors to invest in the specific country, but to create investment screening mechanisms which would enable investor review and supervision. Lithuanian foreign investment screening framework which is a newly regulated institute which came into force on 2018-03-01 will be analyzed in this Master‘s thesis. This institute will be compared with the frameworks of the Member States of the European Union, discussing problematic issues and making proposals on the weaknesses of the investment screening framework. The first chapter contains analysis of the basis of creation of the investment screening framework, such as the potential risks, definition of the investor, as a subject of the investment screening framework, the criteria when an investor will be considered not compatible with the interests of national security. It also contains the examination of the concept of companies, which are important for national security, the criteria what companies are considered important for national security. It involves question if the investment screening mechanisms does not violate the principle of property inviolability. The main stages of the investment screening mechanisms are discussed in this chapter, raising the question of whether this framework is necessary when the transactions shall be reviewed in accordance with the article 1.81 of the Civil Code of the Republic of Lithuania. The second chapter contains of two main aspects – compliance with the constitutional principle of freedom of individual economic activity and the free movement of the capital enshrined in the Treaty on the Functioning of the European Union. The concept of these principles is analyzed and the question whether the restraint of investment does not violate these principles is answered. The third chapter provides weaknesses of the investment screening framework and offers suggestions on how to improve Lithuanian investment screening framework. |
