FDI Screening: EU Investment Screening Framework And Latest Irish Developments

The EU Investment Screening Regulation became fully operational across the EU on 11 October 2020. Within the newly established EU framework, the European Commission (Commission) and the Member States are now subject to mandatory cooperation and information sharing requirements with regard to the review of foreign direct investments that are likely to affect security or public order.

In Ireland, the Department of Enterprise, Trade and Employment (Department) has assumed responsibility for any cooperation and information requests. In parallel, the Department is working on draft legislation that could result in the introduction of a fully-fledged regime and actual powers to review transactions (which it does not currently have) as early as 2021. Whilst the exact scope of any future Irish regime remains unclear at this stage, this could result in additional notification requirements for non-EU investors in Ireland that could impact deal planning.