INVESTMENT POLICY OF THE EU MULTINATIONAL CORPORATIONS IN THE EU

Abstract

The European Union continually fosters convergent relationships among its member states, supporting the formation of a unified investment landscape. Examining the investment policies of the European Union multinational companies will help to assess how effectively single-market opportunities and investment decision-making mechanisms are utilized amid ongoing global transformations. The purpose of the article is to examine the activities and investment policies of multinational companies in the European Union. The article explores the specific features of the investment policies of the European Union multinational companies. It emphasizes that European multinational companies are highly diverse, encompassing both ultra-large and relatively small firms with varying histories, industries, and national characteristics. The article highlights several distinctive features of European multinational companies: most modern European TNCs pursuing global strategies are in the maturity stage with extensive networks of controlled subsidiaries and branches across various countries; their capitalization growth primarily relies on mergers and acquisitions, often supported by external financing; accumulated intellectual capital and other intangible assets are playing an increasingly pivotal role; the positioning of European multinational companies is determined by institutional factors and the characteristics of their strategic roles in traditional competitive markets. The article also emphasizes that the European Union has one of the most open investment regimes in the modern global economy, with European Union member states imposing minimal restrictions on foreign direct investment. The study concludes that the European Union’s investment policy is currently balanced, coherent, and well-considered as part of its common commercial policy. Its international nature defines its characteristics, objectives, and priorities, as well as the effective implementation mechanisms and appropriate instruments. As part of its investment policy, the European Union pays significant attention to the support of partner countries, in accordance with this, the association provides for the mobilization of significant investments, the activation of technical assistance, the improvement of the investment climate and the general political situation in partner countries.