MEP Anthony Smith (The Left) has submitted a written parliamentary question to the European Commission on 21 May 2026, urging stricter oversight of acquisitions of strategic European companies by investment funds he describes as 'vulture funds'. Smith warns that such takeovers, exemplified by recent cases in France—including Europlasma's acquisition of Valdunes, Fonderie de Bretagne and Forges de Tarbes, and Syntagma's purchase of Eurasteel—risk undermining industrial capacity, employment, and strategic sovereignty in the EU. He argues these funds lack long-term industrial strategies and instead seek to appropriate expertise and benefit from government support, often leading to plant closures in sectors like defence.
Smith's three concrete asks
The MEP's question contains three concrete demands: first, that the Commission bolster monitoring and apply the strictest environmental and social standards during acquisitions of strategic companies; second, that it put EU mechanisms in place requiring sustained investment and production following such acquisitions; and third, that it prevent speculative trading that could erode the EU's industrial sovereignty. The question does not propose specific numerical targets or deadlines but calls for regulatory action at EU level.
Policy orientation and cleavage
The question reflects a cleavage between protecting industrial sovereignty and employment versus allowing market-driven investment and capital mobility. Smith advocates for stronger EU intervention to safeguard strategic assets, potentially increasing regulatory burdens on investment funds while shielding domestic industries from foreign or speculative takeovers. This could benefit EU workers and strategic sectors but may deter investment and reduce competitiveness for funds seeking flexible asset management.
Expected follow-up
The Commission is expected to reply within approximately six weeks. Its answer will signal whether it shares Smith's concerns and is willing to propose new monitoring or conditionality mechanisms, or whether it prefers to rely on existing tools such as the EU Foreign Direct Investment Screening Regulation and competition rules. The response will be closely watched by stakeholders including EU industrial companies, investment funds, national governments, and trade unions.