Investment screening regulation of the European Union entered into force

On 11 October 2020, the Regulation of the European Parliament and of the Council establishing a framework for the screening of foreign direct investments into the Union entered into full application. The Regulation creates a mechanism for the exchange of information among EU Member States and the Commission related to specific FDI transactions. It allows the Commission to issue non-binding opinions if an investment threatens essential security interest of more than one Member State; or when an investment could undermine a programme of the EU; and sets standards for EU Member States’ national policies to safeguard their essential security interests. Member States may send non-binding comments if they consider that the transaction is likely to affect their security or public order.

• Type:

  • Entry and establishment (Approval and admission)

• Industry:

  • Not industry specific

• Sources:

  • European Commission , COMMISSION DECISION of 31.7.2020 on the application of Article 127(7)(b) of the Agreement on the Withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the , https://trade.ec.europa.eu/doclib/docs/2020/august/tradoc_158921.pdf, 31 Jul 2020
  • lex.europa.eu, REGULATION (EU) 2019/452 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union , https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32019R0452&from=EN, 21 Mar 2019