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ARTICLE · 19 AUGUST 2020

Foreign Direct Investments And Malta's New Screening Office

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Regulation (EU) 2019/452 ("Regulation") establishes a framework for the screening by Member States of foreign direct investments ("FDIs")

MaltaGovernment, Public Sector

Regulation (EU) 2019/452 ("Regulation") establishes a framework for the screening by Member States of foreign direct investments ("FDIs") into the Union on the grounds of security or public order and for a mechanism for cooperation between Member States, and between Member States and the Commission, with regard to FDIs likely to affect security or public order. By the term 'screening' one understands a procedure which is to be adopted by the Member States to allow it to assess, investigate, authorise, condition, prohibit or unwind FDIs.

The need for such screening at EU level was prompted by the fact that there was no comprehensive framework at Union level for the screening of FDIs on the grounds of security or public order, while the major trading partners of the EU have already developed such frameworks.

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