Amid the Corona-19 pandemic, the European Commission calls for rigid foreign investment screening

On 25 March 2020, the European Commission issued Guidelines calling upon Member States to implement rigid foreign investment screening "in a time of public health crisis and related economic vulnerability" aimed at safegarding EU critical companies and assets from foreign acquisitions. This applies particularly to the public health, pharmaceutical, medical research, infrastructure and the biotechnology sectors.

The Commission requested Member States already having FDI screening mechanisms to utilize them effectively to secure the EU's security or public order. The other Member States are called upon to establish such FDI review regimes and benefit from the EU cooperation and information sharing.

• Type:

  • Entry and establishment (Approval and admission)

• Industry:

  • Not industry specific

• Sources:

  • ec.europa.eu, Coronavirus: Commission issues guidelines to protect critical European assets and technology in current crisis, https://ec.europa.eu/commission/presscorner/detail/en/ip_20_528, 25 Mar 2020