Procedural Legitimacy In Fdi Screening : Investors’ Procedural Guarantees in Sweden’s Foreign DirectInvestment regime under EU and International Investment Law

Sammanfattning

This thesis evaluates the procedural safeguards available to foreign investors within Sweden’s recently established foreign direct investment (FDI) screening regime, specifically assessing its alignment with procedural standards required by EU law and international investment law. By examining the Regulation (EU) 2019/452 and the Swedish Act on the Screening of Foreign Direct Investments (2023:560), the thesis identifies fundamental procedural shortcomings, particularly regarding impartiality, independence, and effective judicial remedies. The thesis finds that Sweden’s current appellate framework, which delegates certain screening decisions directly to the Swedish Government, does not fully comply with the fundamental procedural guarantees mandated by Article 6(1) ECHR, Article 19(1) TEU and Article 47 CFR. Furthermore, by exploring the supplementary protections available under international investment law, the thesis highlights how procedural deficiencies within Sweden’s domestic screening system may constitute breaches of international obligations. Employing the case example of the Chinese investor, Shanghai Putailai New Energy Technology Co., Ltd (PTL), the analysis demonstrates the practical relevance and important role international investment law plays in safeguarding investors' procedural rights when national frameworks fail to fully uphold EU standards.