The New EU FDI Screening Regulation: Key Changes And Implementation Timeline

The new EU FDI Regulation on the screening of foreign investments in the Union (Regulation 2026/1386, the “Regulation”) officially entered into force on 16 July 2026. The new rules will become fully applicable on 17 January 2028. By that date, every EU Member State will be required to maintain a national foreign direct investment (“FDI”) screening mechanism that complies with the Regulation’s minimum requirements. 

The newly adopted Regulation aims to foster a more harmonised approach to investment screening by introducing a mandatory common minimum sectoral scope and strengthening Member States’ powers to assess and control FDI. It also seeks to enhance an EU-wide cooperation mechanism and information sharing among Member States.