The Council has approved the revised framework for the screening of foreign direct investments in the EU, aiming to strengthen the protection of security and public order.
The new regulation introduces a more coordinated European approach and requires all Member States to establish screening mechanisms covering sensitive sectors, technologies and infrastructures, including energy, transport, digital infrastructure, artificial intelligence, critical raw materials, dual-use items and military equipment.
A key development is that the new framework also covers foreign investments carried out through subsidiaries established within the EU, in order to reduce the risk of circumvention of the rules.
At the same time, final screening decisions remain within the competence of Member States, while cooperation with the European Commission and the exchange of information are further reinforced.
This reform forms part of the EU’s broader economic security strategy and reflects the need to balance an open investment environment with the protection of critical infrastructure, strategic technologies and sensitive sectors from potential security risks.