Briefing
EU Foreign Direct Investment
New Screening Regulation fully applicable from 11 October 2020
The EU framework for the screening of foreign direct investment (the Regulation) becomes fully applicable from 11 October 2020.
The Regulation includes a set of principles to which member states must adhere if they wish to introduce domestic screening regimes which concern inter alia: ensuring the transparency of regimes and of decision-making; not discriminating among third countries when designing and enforcing the regimes; and ensuring that there are anti-circumvention rules in place (e.g. covering acquisitions of EU subsidiaries controlled by foreign companies). It also includes a list of factors and areas which member states may consider when designing regimes or determining whether a transaction is likely to impact their security or public order. The list includes critical infrastructure, critical technologies, security of supply of critical input, access to (or ability to control) sensitive information, and freedom and pluralism of media.
A key part of the Regulation is a mechanism for cooperation and information sharing among member states, and between member states and the European Commission.
Read more about the key features of the cooperation mechanism here.
