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    EU framework for FDI screening On 13 Septemberthe European Commission adopted a proposal for a regulation establishing a framework for screening foreign direct investment FDI inflows into the EU on grounds of security or public order. The proposal was a response to a rapidly evolving and increasingly complex investment landscape.

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    It aimed to strike a balance between maintaining the EU's general openness to FDI inflows and ensuring that the EU's essential interests are not undermined. Recent FDI trends and policies of On 13 Septemberthe European Commission adopted a proposal for a regulation establishing a framework for screening foreign direct investment FDI inflows into the EU on grounds of security or public order. The proposal's objective was neither to harmonise the formal FDI screening mechanisms then used by almost half of the Member States, nor to replace them with a single EU mechanism.

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    Instead, it aimed to enhance cooperation and information-sharing on FDI screening between the Commission and Member States, and to increase legal certainty and transparency. After the text's adoption by the European Parliament and the Council in February and March respectively, it entered into force on 10 Apriland will apply from 11 October18 months later.

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    Fourth edition. Please note this document has been designed for on-line viewing.

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