27 Sep 2024/PSSI

Following a flurry of proposed legislation in the U.S. Congress addressing the risks associated with investments linked to authoritarian states, PSSI’s latest Perspective urges Europe to emulate or match these measures. The report emphasizes the geopolitical importance of managing capital flows to avoid inadvertently supporting undemocratic regimes and associated corporate bad actors, through highlighting ten such legislative proposals in particular. 

The ten proposals highlighted in this Perspective range from reducing financial exposure to certain Chinese companies and imposing sanctions and tax penalties on foreign adversaries, to bolstering domestic transparency, control, and understanding of the risks involved in such investments. As the EU is focused on building a Capital Markets Union, it must be conscious of the role its markets can play in shaping global governance, and be prepared to act accordingly to safeguard the interests of the continent and uphold its values.

 

Download the Perspective here.