Strengthening The EU FDI Screening Framework

EU FDI Screening

In 2020, the European Union introduced the Foreign Direct Investment (FDI) Screening Regulation with the aim of enabling cooperation between EU Member States and the European Commission in the screening of foreign direct investments that may affect security or public order. The introduction of this framework proved effective and led to a significant increase in the number of national screening mechanisms across the Union. However, as these mechanisms developed, notable divergences in scope, procedures, and thresholds became apparent among Member States.

A significant milestone was reached on 11 December 2025, when the European Parliament and the Council reached a provisional agreement on strengthening the EU's tools for protecting sectors from potentially risky foreign investments. Once formally adopted by both institutions, this agreement will result in a revised regulation that builds on the existing FDI screening framework. Its objective is to