Foreign Investments: the EU takes the lead to harmonise screening initiatives

On 13 September 2017, the European Commission issued a proposal for a Regulation “establishing a framework for screening of foreign direct investments into the European Union“

The proposal confirms that Member States may maintain or adopt new measures to control foreign investments that may affect security or public order under certain conditions but does not require them to do so.

The main goal of the Commission is to answer a strong political demand and to ensure fair competitive conditions between EU and foreign investors based on market rules.

The core of the Proposed Regulation is to establish a cooperation mechanism between the Member States and with the Commission.

It now has to follow the normal legislative procedure that may take more than one year.