Coreper endorses EU mandate to revise FDI screening rules

Article summary

The Council of the EU, represented by Coreper, has endorsed a mandate to revise the Foreign Direct Investment (FDI) screening regulation. The revised regulation will require all Member States to implement harmonised screening mechanisms, establish a minimum sectoral scope, and extend coverage to include EU-based entities ultimately controlled by non-EU investors. Any restrictions imposed must be justified by serious public policy or security concerns. The Council has also supported anti-circumvention measures targeting intra-EU investments by foreign-controlled subsidiaries and has narrowed the regulation’s scope to focus on sensitive areas such as military and dual-use goods. The Council, the European Parliament, and the European Commission are set to begin interinstitutional negotiations to finalise the legislation.