FDI flows between developed economies were the first to be affected by the financial crisis. The United States is by far the main partner of the European Union, and the drop in incoming FDI flows was significant in 2008. Investments declined to EUR 50.5 bn in 2008 from the record high of 2007, when the US alone placed EUR 183.5 bn worth of investment in the European Union. However, a significan…