FDI screening
The European framework for screening of foreign direct investment (FDI) has the following objectives:
- it protects security and public order within the EU
- it ensures that foreign direct investments do not undermine strategic interests
- it facilitates cooperation and information-sharing among EU Member States and the European Commission.
The Regulation (EU) 2019/452 - known as FDI Screening Regulation - establishing an EU FDI screening framework entered into force on 10 April 2019. Its cooperation mechanism has applied since 11 October 2020. It does not create a single EU-wide screening mechanism but coordinates national systems and establishes minimum standards.
The Regulation complements the EU’s overall investment policy framework by ensuring that the EU’s openness to FDI is balanced by appropriate controls of potential threats.
More information on FDI screening is available on the DG Trade website.