Foreign direct investment and sustainable development in the European Union

Sa？etak The aim of this paper is to analyze how foreign direct investment can impact sustainable development, particularly from an environmental standpoint. Pursuing that aim, the structure and flows of foreign direct investment are analyzed, along with environmental protection regulation and its evolution over the last few decades in European Union (EU) countries. The conclusion of the research is that most EU countries have strong environmental requirements that can influence investors seeking pollution havens in these countries. However, while common EU policies are in place, member countries also apply their own national regulations and incentives. Different approaches to investments and sustainable development policies may have implications for the level of harmonization and collaboration among EU countries in the future