A-10-2025-0061 — EU Parl Watch

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DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council on the screening of foreign investments in the Union and repealing Regulation (EU) 2019/452 of the European Parliament and of the Council

(COM(2024)0023 – C90011/2024 – 2024/0017(COD))

(Ordinary legislative procedure: first reading)

– having regard to the Commission proposal to Parliament and the Council (COM(2024)0023),

– having regard to Article 294(2) and Articles 114 and 207 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C90011/2024),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to the opinion of the European Economic and Social Committee of 10 July 2024,

– having regard to the opinion of the Committee of the Regions of 20 November 2024,

– having regard to Rule 60 of its Rules of Procedure,

– having regard to the opinions of the Committee on Economic and Monetary Affairs, the Committee on Industry, Research and Energy, the Committee on the Internal Market and Consumer Protection and the Committee on Transport and Tourism,

– having regard to the report of the Committee on International Trade (A10-0061/2025),

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Amendment 1

Proposal for a regulation

Recital 1

Text proposed by the Commission

Amendment

(1) Investments in the Union contribute to its growth by improving its competitiveness, creating jobs and economies of scale, and bringing in capital, technologies, innovation and expertise.

(1) The Union welcomes foreign investments as they contribute to its growth by improving its competitiveness, creating jobs and economies of scale, and bringing in capital, technologies, innovation and expertise.

Amendment 2

Proposal for a regulation

Recital 3

Text proposed by the Commission

Amendment

(3) However, under international commitments made in the World Trade Organization (WTO), the Organisation for Economic Cooperation and Development (OECD), and the trade and investment agreements concluded with third countries, it is possible for the Union and Members States to restrict foreign direct investments (FDIs) on the grounds of security or public order, subject to certain requirements.

(3) However, Article 21(2) TEU states that the Union's policies and actions aim to safeguard its values, fundamental interests, security, independence, and integrity. Those principles and objectives underpin the Union's common commercial policy, as set out in Article 207 TFEU including in relation to foreign investment. Within that context, international commitments made in the World Trade Organization (WTO), the Organisation for Economic Cooperation and Development (OECD), and the trade and investment agreements concluded with third countries, allow the Union and Member States to restrict foreign direct investments (FDIs) on the grounds of security or public order, subject to certain requirements.

Amendment 3

Proposal for a regulation

Recital 4

Text proposed by the Commission

Amendment

(4) In accordance with Regulation (EU) 2019/452 of the European Parliament and of the Council4 a framework has been set up for screening FDIs into the Union by Member States. In particular, that Regulation has set out a cooperation mechanism enabling Member States and the Commission to exchange information on FDIs and raise concerns about risks to security or public order. That cooperation mechanism required the Member State where the FDI was planned or completed to give due consideration to the comments issued by other Member States and the opinion issued by the Commission in its screening decision.

(4) In accordance with Regulation (EU) 2019/452 of the European Parliament and of the Council4 a framework has been set up for screening FDIs into the Union by Member States. In particular, that Regulation has set out a cooperation mechanism enabling Member States and the Commission to exchange information on FDIs and raise concerns about risks to security or public order. That cooperation mechanism required the Member State where the FDI was planned or completed (host Member State) to give due consideration to the comments issued by other Member States and the opinion issued by the Commission in its screening decision.

__________________

4 Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union (OJ L 79I, 21.3.2019, p. 1, ELI: http://data.europa.eu/eli/reg/2019/452/oj).

Amendment 4

Proposal for a regulation

Recital 6 a (new)

Text proposed by the Commission

Amendment

(6a) Moreover, a new legislative instrument is necessary due to the evolving nature of investment flows. The integration of global economies, combined with war and geopolitical tensions, has led to the emergence of new risks that need to be addressed by the Union and the Member States. On 20 June 2023, the Commission presented a Communication to the European Parliament, the European Council, and the Council on the “European Economic Security Strategy,” which identifies FDI screening as a tool to protect the Union against economic security risks. The strategy underscores the need to address risks associated with the resilience of supply chains, physical and cyber security of critical infrastructures, technology security and leakage, and the weaponisation of economic dependencies or economic coercion. Those economic security risks are also relevant in the context of the screening of foreign investments, as they could have a negative impact on fundamental societal interests such as prosperity, sovereignty, safety, and the operation of the social market economy, and thereby on Member States' and the Union's public order.

Amendment 5

Proposal for a regulation

Recital 7 a (new)

Text proposed by the Commission

Amendment

(7a) Acquisitions through resolution tools under the respective resolution frameworks (for banks, central counterparties or reinsurance or reinsurance undertakings) should be excluded from the scope of this Regulation. In resolution, time is of the essence and decisions are often made literally overnight. The in-depth screening procedures provided for in this Regulation are not in line with the need for a timely response. In order to avoid financial stability risks, resolution transactions should therefore be excluded. Resolution authorities should take into account, to the extent possible, this Regulation when performing resolution actions with the involvement of a foreign investor, in particular when strategic assets are involved.

Amendment 6

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

(8) A significant majority of Member States, but not all, have a legislative instrument in place that provides for a mechanism to screen FDIs. In many Member States, national laws also extend to screening intra-Union investments. Among the Member States, there are substantial differences as to the scope, thresholds and criteria used to assess whether an investment is likely to negatively affect security or public order. There are also differences in the screening processes. In certain Member States, the investment can be implemented before having received clearance with respect to the impact on security and public order. However, others require that the investment is only finalised after authorisation under the screening mechanism. Such divergences create a problem for the smooth functioning of the internal market. For example, they create an uneven playing field and increase compliance costs for investors seeking to notify transactions in more than one Member State. This Regulation helps in reducing divergences on key elements of the mechanisms implemented at national level. This is crucial to ensure predictability for investors on the applicable national regimes and their characteristics, thereby reducing the associated compliance costs. This is all the more relevant considering the level of integration of internal market, which may result in a single transaction impacting multiple Member States across the Union. It is for example possible that a transaction aimed to the acquisition of a target company in one Member State also affects security and public order in another Member State, due to the supply chain structure or other economic elements connecting the target with other companies based in a different Member States. In order to address these internal market problems and ensure greater consistency and predictability, it is appropriate that the criteria and elements to be used for the assessment of foreign investments are established through Union action.

(8) A significant majority of Member States, but not all, have a legislative instrument in place that provides for a mechanism to screen FDIs. In many Member States, national laws also extend to screening intra-Union investments. Among the Member States, there are substantial differences as to the scope, thresholds and criteria used to assess whether an investment is likely to negatively affect security or public order. There are also differences in the screening processes. In certain Member States, the investment can be implemented before having received clearance with respect to the impact on security and public order. However, others require that the investment is only finalised after authorisation under the screening mechanism. Such divergences create a problem for the smooth functioning of the internal market. For example, those inconsistencies create an uneven playing field and increase compliance costs for investors who need to notify transactions in multiple Member States. This Regulation helps in harmonising key elements of the mechanisms implemented at national level. This is crucial to ensure predictability for investors on the applicable national regimes and their characteristics, thereby reducing the associated compliance costs. This is all the more relevant considering the high level of integration in the internal market, which may result in a single transaction impacting multiple Member States across the Union. It is for example possible that a transaction aimed at acquiring a target company in one Member State also affects security and public order in other Member States, due to the supply chain structure or other economic elements connecting the target with other companies based in a different Member States. In order to address these internal market problems and ensure greater consistency and predictability, it is appropriate that the criteria and elements to be used for the assessment of foreign investments are established through Union action.

Amendment 7

Proposal for a regulation

Recital 9

Text proposed by the Commission

Amendment

(9) To ensure a consistent approach to foreign investment screening across the Union, all Member States should be required to screen foreign investments on the grounds of security or public order. Therefore, the core elements of national screening mechanisms should be harmonised. That minimum harmonisation includes the scope of investments to be screened, the screening procedure’s essential features, and the interaction between the national mechanism and the Union cooperation mechanism. In addition, Member States should also be able to extend the scope of their national screening mechanism to include other types of foreign investments, foreign investments in other sectors, additional Union targets or economic activities that the relevant Member State considers critical for its security or public order. When they do so, such screening should also comply with the provisions of this Regulation.

(9) To ensure a consistent approach to foreign investment screening across the Union, all Member States should be required to screen foreign investments on the grounds of security or public order. Therefore, the core elements of national screening mechanisms should be harmonised. That harmonisation should also include the scope of investments to be screened, the screening procedure’s essential features, and the interaction between the national mechanism and the Union cooperation mechanism, including consistent timelines for screening procedures. In addition, Member States should also be able to extend the scope of their national screening mechanism to include other types of foreign investments, foreign investments in other sectors, additional Union targets or economic activities that the relevant Member State considers critical for its security or public order. When they do so, such screening should also comply with the provisions of this Regulation. It is essential to establish a harmonised and streamlined approach across Member States, which ensures that foreign investments which may have implications for security and public order are subject to consistent scrutiny and efficient decision-making. To that end, screening mechanisms should minimise administrative complexity, avoid unnecessary delays and take into consideration the limited resources of small and medium-sized enterprises (SMEs) when applied to them. Furthermore, the Commission should act in a coordinating role to ensure greater security for the Union while minimising inefficiencies and fragmented approaches.

Amendment 8

Proposal for a regulation

Recital 12

Text proposed by the Commission

Amendment

(12) Screening foreign investments should be carried out in accordance with this Regulation, taking into account all factual information available and adhering to the principle of proportionality and other principles enshrined in the Treaties. Moreover, the screening of foreign investments which are carried out through subsidiaries of the foreign investor established in the Union should in all cases comply with the requirements stemming from Union law, and in particular with the Treaty provisions on freedom of establishment and free movement of capital, as interpreted in the case-law of the Court of Justice of the European Union, consistently with the objective of preserving an open and inclusive internal market. Any restrictions to the freedom of establishment and free movement of capital in the Union, including the screening and measures arising from screening, such as mitigating measures and prohibitions should be based on a genuine and sufficiently serious threat to a fundamental interest of society, and should be appropriate and necessary as set out in the case law of the Court of Justice. At the same time, when assessing the justification and proportionality of a restriction, the specificities of investments within the Union operated through a subsidiary of a foreign investor may be taken into account when assessing any restrictions on freedom of establishment or to the free movement of capital, including where appropriate in any Commission opinion adopted pursuant to this Regulation. This should be done taking into account the integration of Member State schemes into a Union-wide cooperation mechanism.

(12) Screening foreign investments should be carried out in accordance with this Regulation, taking into account all factual information available and adhering to the principle of proportionality and other principles enshrined in the Treaties. Moreover, the screening of foreign investments which are carried out through subsidiaries of the foreign investor established in the Union should in all cases comply with the requirements stemming from Union law, and in particular with the Treaty provisions on freedom of establishment and free movement of capital, as interpreted in the case-law of the Court of Justice of the European Union, consistently with the objective of preserving a functioning, open, resilient and inclusive internal market. Any restrictions to the freedom of establishment and free movement of capital in the Union, including the screening and measures arising from screening, such as mitigating measures and prohibitions should be based on a genuine and sufficiently serious threat to a fundamental interest of society, and should be appropriate and necessary as set out in the case law of the Court of Justice. At the same time, the specificities of investments within the Union operated through a subsidiary of a foreign investor should be taken into account when assessing the justification and proportionality of any restrictions on freedom of establishment or to the free movement of capital, including where appropriate in any Commission opinion or decision adopted pursuant to this Regulation. This should be done taking into account the integration of Member State schemes into a Union-wide cooperation mechanism.

Amendment 9

Proposal for a regulation

Recital 14

Text proposed by the Commission

Amendment

(14) It is also necessary to make the Member State where the foreign investment is planned or completed more accountable to the Commission and to those Member States that express duly justified concerns for their public order or security or the Union’s.

(14) It is also necessary to make the host Member State more accountable to the Commission and to those Member States that express duly justified concerns for their public order or security or the Union’s.

Amendment 10

Proposal for a regulation

Recital 15

Text proposed by the Commission

Amendment

(15) The common framework set out in this Regulation should be without prejudice to the sole responsibility of Member States to safeguard their national security as provided for in Article 4(2) TEU. It should also be without prejudice to the protection of their essential security interests in accordance with Article 346 TFEU.

(15) The common framework set out in this Regulation should be without prejudice to the sole responsibility of each Member States to safeguard its national security as provided for in Article 4(2) TEU. It should also be without prejudice to the protection of Member States’ essential security interests in accordance with Article 346 TFEU.

Amendment 11

Proposal for a regulation

Recital 17

Text proposed by the Commission

Amendment

(17) Greenfield foreign investments occur where the foreign investor or a foreign investor’s subsidiary in the Union sets up new facilities or a new undertaking in the Union. Greenfield foreign investments should fall within the scope of this Regulation to the extent they are considered relevant by a Member State for the purpose of the screening of foreign investments because they create lasting and direct links between a foreign investor and such facilities or such undertakings. In addition, by setting up new facilities, a foreign investor can impact on security and public order, including when that risk concerns essential economic inputs. Member States are therefore encouraged to include greenfield foreign investments in the scope of transactions covered by their screening mechanisms, in particular when such investments occur in sectors relevant to their security or public order or when they present characteristics such as size or essential nature to be relevant to their security or public order.

(17) Greenfield foreign investments occur where the foreign investor or a foreign investor’s subsidiary in the Union sets up new facilities or a new undertaking in the Union for the performance of a new economic activity. By setting up new facilities, a foreign investor can impact on security and public order, including when that risk concerns essential economic inputs. Member States should therefore include greenfield foreign investments in the scope of transactions covered by their screening mechanisms.

Amendment 12

Proposal for a regulation

Recital 18

Text proposed by the Commission

Amendment

(18) To ensure consistent and predictable screening processes, it is appropriate to lay down the essential features of the screening mechanisms to be implemented by Member States. Those features should at least include the scope of the transactions to be subject to an authorisation requirement, deadlines for the screening and the possibility for undertakings concerned by the screening decision to seek recourse against such decisions. Rules and procedures relating to screening mechanisms should be transparent and should not discriminate between third countries.

(18) To ensure consistent and predictable screening processes, it is appropriate to lay down the essential features of the screening mechanisms to be implemented by Member States. Those features should at least include the scope of the transactions to be subject to an authorisation requirement, deadlines for the screening, the possibility for undertakings concerned by the screening decision to seek recourse against such decisions and the ability of screening authorities to effectively address cases of non-compliance or circumvention. Rules and procedures relating to screening mechanisms should be transparent and should not discriminate between third countries. The procedure for the filing of a request for authorisation should ensure that compliance requirements are kept to a minimum.

Amendment 13

Proposal for a regulation

Recital 19

Text proposed by the Commission

Amendment

(19) The cooperation mechanism laid down in Regulation (EU) 2019/452 enables Member States to cooperate and help each other where a foreign direct investment in one Member State could affect the security or public order of other Member States or of projects or programmes of Union interest. This mechanism has proven very useful so far, hence it should be maintained and strengthened under this Regulation.

(19) The cooperation mechanism laid down in Regulation (EU) 2019/452 enables Member States to cooperate and help each other where a foreign direct investment in one Member State could affect the security or public order of other Member States or of the Union, or of projects or programmes of Union interest. This mechanism has proven very useful so far, hence it should be maintained, strengthened and expanded under this Regulation to ensure a more unified approach to foreign investments across the Union.

Amendment 14

Proposal for a regulation

Recital 20

Text proposed by the Commission

Amendment

(20) To ensure that foreign investments likely to negatively affect security or public order in the Union are adequately identified, Member States should screen foreign investments where the Union target is part of or participates in a project or programme of Union interest or where the Union target’s economic activity relates to a technology, asset, facility, equipment, network, system or service of particular importance for the security or public order interests of the Union. In addition to these criteria, screening mechanisms may apply to other sectors, Union targets or economic activities that the relevant Member State considers critical for its security or public order.

(20) To ensure that foreign investments likely to negatively affect security or public order in the Union are adequately identified, Member States should screen foreign investments where the Union target is part of or participates in a project or programme of Union interest or where the Union target’s economic activity relates to a technology, materials, asset, facility, equipment, network, system or service of particular importance for the security or public order interests of the Union. Member States should also screen greenfield foreign investments in such sensitive programmes or sectors when a specific risk arises from the characteristics of the investor and the size of the transaction. In addition to these criteria, screening mechanisms may apply to other sectors, Union targets or economic activities that the relevant Member State considers critical for its security or public order.

Amendment 15

Proposal for a regulation

Recital 21

Text proposed by the Commission

Amendment

(21) To ensure that the cooperation mechanism focuses only on those foreign investments where the characteristics of the foreign investor or the Union target make an effect on security or public order likely, it is appropriate to establish risk-based conditions for the notification of foreign investments undergoing screening in a Member State to the other Member States and the Commission. Where a foreign investment does not meet any of the conditions, the Member State where the foreign investment is undergoing screening may notify the foreign investment to the other Member States and the Commission, including where the Union target has significant operations in other Member States, or belongs to a corporate group that has several companies in different Member States.

(21) To ensure that the cooperation mechanism focuses only on those foreign investments where the characteristics of the foreign investor or the Union target make an effect on security or public order likely, it is appropriate to establish risk-based conditions for the notification of foreign investments undergoing screening in a Member State to the other Member States and the Commission. In particular, Member State should assess whether the foreign investor is controlled or influenced by a third country government. Control or influence may be determined based on criteria such as direct or indirect ownership thresholds, the nature and extent of third-country government funding and specific governance arrangements such as golden shares. Cases of opaque or unclear ownership structure, or where the ultimate beneficiary is unknown, should also be included as such a condition. Where a foreign investment does not meet any of the conditions, the Member State where the foreign investment is undergoing screening may notify the foreign investment to the other Member States and the Commission, including where the Union target has significant operations in other Member States, or belongs to a corporate group that has several companies in different Member States.

Amendment 16

Proposal for a regulation

Recital 22

Text proposed by the Commission

Amendment

(22) To ensure that the likely effect of a foreign investments on the security or public order of one or more Member States is adequately identified, Member States should be able to provide comments to a Member State in which a foreign investment is planned or has been completed even if that Member State is not screening that foreign investment or if the foreign investment is screened but not notified to the cooperation mechanism. Requests for information, replies and comments from Member States should be notified to the Commission simultaneously.

(22) To ensure that the likely effect of a foreign investments on the security or public order of one or more Member States is adequately identified, Member States should be able to provide comments to a Member State in which a foreign investment is planned or has been completed even if that Member State is not screening that foreign investment or if the foreign investment is screened but not notified to the cooperation mechanism. Requests for information, replies and comments from Member States should be notified to the Commission simultaneously to ensure transparency throughout the process.

Amendment 17

Proposal for a regulation

Recital 23

Text proposed by the Commission

Amendment

(23) To ensure that the likely effect of a foreign investment on the security or public order of more than one Member States or the Union as a whole is adequately identified, it should be possible for the Commission to issue an opinion within the meaning of Article 288 TFEU to the Member State in which the foreign investment is planned or has been completed, even if that foreign investment is not undergoing screening in that Member State or if that foreign investment is screened but not notified to the cooperation mechanism.

(23) To ensure that the likely effect of a foreign investment on the security or public order of more than one Member States or the Union as a whole is adequately identified, it should be possible for the Commission to issue an opinion within the meaning of Article 288 TFEU to the host Member State even if that foreign investment is not undergoing screening in that Member State or if that foreign investment is screened but not notified to the cooperation mechanism. To ensure transparency and predictability, opinions of the Commission should be based on specific and documented risks and should follow set issuance criteria, including documented security risks or cross-border concerns.

Amendment 18

Proposal for a regulation

Recital 24

Text proposed by the Commission

Amendment

(24) Furthermore, to allow the protection of security or public order where the likely effect emanates from a foreign investment into a Union target that provides for the development, maintenance or acquisition of infrastructure, technologies or inputs, which are critical for the Union as a whole, the Commission should be allowed to issue an opinion. This would give the Commission a tool to protect projects and programmes which serve the Union as a whole and represent an important contribution to the Union’s security or public order. A Commission opinion identifying the likely impact on projects or programmes of Union interest on the grounds of security or public order should be notified to all Member States.

(24) Furthermore, to ensure the protection of security or public order where the likely effect emanates from a foreign investment into a Union target that provides for the development, maintenance or acquisition of infrastructure, technologies or inputs, which are critical for the Union as a whole, the Commission should be allowed to issue an opinion. This would give the Commission a tool to protect projects and programmes which serve the Union as a whole and represent an important contribution to the Union’s security or public order. A Commission opinion identifying the likely impact on projects or programmes of Union interest on the grounds of security or public order should be notified to all Member States.

Amendment 19

Proposal for a regulation

Recital 25

Text proposed by the Commission

Amendment

(25) Furthermore, it should be possible for the Commission to adopt an opinion addressed to all Member States if it identifies several foreign investments that, taken together, are likely to impact the security or public order of the Union. This could notably be the case where several foreign investments present comparable characteristics. These include where the foreign investments are made by the same foreign investor, or foreign investors presenting similar risks, or where several foreign investments concern the same target or the same infrastructure, including trans-European infrastructure for transport, energy and communication. Member States and the Commission should discuss the risk analysis and the possible ways to address the risks identified in the opinion.

(25) Furthermore, it should be possible for the Commission to adopt an opinion addressed to all Member States if it identifies several foreign investments that, taken together, are likely to impact the security or public order of the Union. This could notably be the case where several foreign investments present comparable characteristics. These include where the foreign investments are made by the same foreign investor, or foreign investors presenting similar risks, or where several foreign investments concern the same Union target or infrastructure, including trans-European infrastructure for transport, energy and communication. Member States and the Commission should discuss the risk analysis and the possible ways to address the risks identified in the opinion, ensuring a coordinated approach.

Amendment 20

Proposal for a regulation

Recital 26

Text proposed by the Commission

Amendment

(26) To protect security or public order while providing greater certainty to investors, Member States should have the possibility to make comments and the Commission should have the possibility to issue an opinion on foreign investments that have been completed but not notified up to 15 months after the completion of the foreign investment.

(26) To protect security or public order while providing greater certainty to investors, Member States should have the possibility to make comments and the Commission should have the possibility to issue an opinion on foreign investments that have been completed but not notified within 15 months of the completion of the foreign investment.

Amendment 21

Proposal for a regulation

Recital 27

Text proposed by the Commission

Amendment

(27) For greater clarity, the list of projects or programmes of Union interest should be listed in Annex I. These should include any foreign investments undertaken on the trans-European networks for transport, energy and communication, as well as programmes providing funding for research and development for activities relevant for the security or public order of the Union. Due to the importance of these projects and programmes for the security and public order of the Union, Member States should screen foreign investments into Union undertakings that are part of or participating in these projects or programmes, including those that receive funding from the Union.

(27) For greater clarity, the list of projects or programmes of Union interest should be listed in Annex I. These should include any foreign investments undertaken on the trans-European networks for transport, energy and communication, as well as programmes providing funding for research and development for activities relevant to the security or public order of the Union. Due to the importance of these projects and programmes for the security and public order of the Union and their inherent cross-border nature and network character, Member States should screen foreign investments into Union undertakings that are part of or participating in these projects or programmes, including those that receive funding from the Union.

Amendment 22

Proposal for a regulation

Recital 28

Text proposed by the Commission

Amendment

(28) In order to ensure that the likely effect of a foreign investment on the security or public order of one or more Member States is adequately addressed, Member States receiving duly justified comments from other Member States or an opinion from the Commission should give such comments or opinion utmost consideration, including where it considers that its own security or public order is not affected. The Member State should coordinate with the Commission and the Member States concerned if necessary and provide them with written feedback on the decision taken and how the comments and the opinion have been given utmost consideration. The final decision on foreign investments should remain the sole responsibility of the Member State where the foreign investment is planned or completed.

(28) In order to ensure that the likely effect of a foreign investment on the security or public order of one or more Member States is adequately addressed, Member States receiving duly justified comments from other Member States or an opinion from the Commission should give such comments or opinion utmost consideration, including where it considers that its own security or public order is not affected. The Member State should coordinate with the Commission and the Member States concerned if necessary and provide them with its draft decision, accompanied by written feedback on how the comments and the opinion have been given utmost consideration. The draft decision should remain open to amendments to take into account the views expressed by the Member States concerned and the Commission.

Amendment 23

Proposal for a regulation

Recital 28 a (new)

Text proposed by the Commission

Amendment

(28a) In certain instances, disagreements may arise between the host Member State and another Member State, or the Commission, regarding whether the investment is likely to affect the security and public order of a Member State or of the Union. Leaving the resolution of such disagreements solely to the host Member State risks affecting the security and public order of the Union as a whole and undermining the functioning of the cooperation mechanism. Therefore, in such cases, the Commission should be empowered to adopt a decision, basing its assessment of the likelihood of the investment affecting security and public order on the information provided by the host Member State and its own findings, where it has conducted an investigation. In all other cases, the final decision should remain the responsibility of the host Member State.

Amendment 24

Proposal for a regulation

Recital 28 b (new)

Text proposed by the Commission

Amendment

(28b) Within the allocation of responsibilities between Member States and the Commission provided for by this Regulation, national screening authorities face limitations in investigating foreign investment transactions beyond their geographical borders, which can have an impact on the effectiveness of their analysis. For example, this could be the case where customers of the target company are located in another Member State, while their views may be essential to assess the target's sensitivity to security or public order risks, such as the availability of alternative suppliers for the target's goods or services. Given its cross-border perspective, the Commission is well-placed to address those limitations and contribute to the assessment of the impact of foreign investment transactions on security and public order. To that end, it should be granted appropriate investigative powers to gather necessary information. The Commission should be able to request information from entities in another Member State when such information cannot be efficiently obtained through the cooperation mechanism. The Commission’s power to request information should be based on a justified request from a Member State. However, when national authorities face legal or procedural constraints, such as short procedural timelines, the Commission should be able to act independently, provided that the host Member State has been notified. That power should be limited to information necessary to assess the impact of a transaction on more than one Member State, including adverse effects on Union programmes and projects.

Amendment 25

Proposal for a regulation

Recital 29

Text proposed by the Commission

Amendment

(29) To ensure the effective functioning of the cooperation mechanism, it is important to require that the Member State notifying the foreign investment to the cooperation mechanism provides a minimum level of information in a standardised format. Where the cooperation concerns a foreign investment not notified to the cooperation mechanism, the Member State where the foreign investment is planned or has been completed should be able to provide at least the same minimum level of information. The Commission and Member States may seek additional information from the Member State where the foreign investment is planned or completed. Such request for additional information should be duly justified, limited to the information necessary for the Member States to provide comments or for the Commission to issue an opinion, proportionate to the purpose of the request and not unduly burdensome for the notifying Member State.

(29) To ensure the effective functioning of the cooperation mechanism, it is important to require that the Member State notifying the foreign investment to the cooperation mechanism provides a minimum set of information in a standardised format. Where the cooperation concerns a foreign investment not notified to the cooperation mechanism, the host Member State should be able to provide at least the same minimum set of information. The Commission and Member States may seek additional information from the Member State where the foreign investment is planned or completed. Such request for additional information should be duly justified, limited to the information necessary for the Member States to provide comments or for the Commission to issue an opinion, proportionate to the purpose of the request and not unduly burdensome for the notifying Member State and the companies concerned. Where relevant, the Commission may request information from other Union bodies such as the European Securities and Markets Authority, the European Banking Authority, the European Insurance and Occupational Pensions Authority, the Single Supervisory Mechanism or the European Central Bank.

Amendment 26

Proposal for a regulation

Recital 30

Text proposed by the Commission

Amendment

(30) To ensure that the cooperation is based on complete and accurate information, a foreign investor or an undertaking should provide any relevant information requested by the Member State where they are established or the Member State where the foreign investment is planned or completed. In exceptional circumstances, when, despite its best efforts, a Member State is unable to obtain an information requested by another Member State or the Commission, it should notify them without delay. In such a case, any comment issued by another Member State, or any opinion issued by the Commission as part of the cooperation mechanism should be based on the information available to them.

(30) To ensure that the cooperation is based on complete and accurate information, a foreign investor or an undertaking should provide any relevant information requested by the Member State where they are established or the host Member State. In exceptional circumstances, when, despite its best efforts, a Member State is unable to obtain an information requested by another Member State or the Commission, it should notify them without delay. In such a case, any comment issued by another Member State, or any opinion issued by the Commission as part of the cooperation mechanism should be based on the information available to them.

Amendment 27

Proposal for a regulation

Recital 31

Text proposed by the Commission

Amendment

(31) To ensure that the cooperation mechanism is only used for the purpose of protecting security or public order, Member States should duly justify any request for information about a specific foreign investment in another Member State and any comment they issue to that Member State. The same requirements apply when the Commission requests information about a particular foreign investment or issues an opinion to a Member State.

(31) To ensure that the cooperation mechanism is used exclusively for the purpose of protecting security or public order, Member States should duly justify any request for information regarding a specific foreign investment in another Member State and any comment they issue to that Member State. This is essential for preventing misuse of the mechanism and ensuring that it is solely focused on security and public order concerns. The same requirements apply when the Commission requests information about a particular foreign investment or issues an opinion to a Member State.

Amendment 28

Proposal for a regulation

Recital 31 a (new)

Text proposed by the Commission

Amendment

(31a) Without prejudice to the cooperation mechanism, there is a need to raise awareness of the participation or contribution of undertakings from third countries in projects of common interest or in critical infrastructure which is strategic for the Union, in order to allow for intervention by public authorities if such participation or contribution is likely to affect security or public order in the Union and does not fall within the scope of this Regulation. Member States may make observations to other Member States as well as to the Commission. Where appropriate, the Commission may request additional information and follow up the situation.

Amendment 29

Proposal for a regulation

Recital 32

Text proposed by the Commission

Amendment

(32) Member States or the Commission, as appropriate, might consider relevant information received from economic operators, civil society organisations, social partners (such as trade unions) about a foreign investment likely to negatively affect security or public order.

(32) Member States or the Commission, as appropriate, might consider relevant information received from economic operators, civil society organisations, social partners (such as trade unions) about a foreign investment likely to negatively affect security or public order. That information should be assessed thoroughly and may lead to the initiation of a screening procedure by the host Member State.

Amendment 30

Proposal for a regulation

Recital 33

Text proposed by the Commission

Amendment

(33) A Member State where a foreign investment is planned or has been completed may inform other Member States or the Commission if it wishes them to further analyse one or more aspects of a foreign investment that the cooperation mechanism is assessing or becomes aware of new circumstances or new information that may impact the assessment of the foreign investment. The other Member States and the Commission may then be granted additional time to complement their assessment of the foreign investment.

(33) A host Member State may inform other Member States or the Commission if it becomes aware of new circumstances or new information that may impact the assessment of a notified foreign investment. The other Member States and the Commission may then be granted additional time to complement their assessment of the foreign investment. In such cases, any extension of the assessment period should be kept to a minimum and should not unduly delay the overall screening procedure.

Amendment 31

Proposal for a regulation

Recital 34

Text proposed by the Commission

Amendment

(34) To ensure the efficiency and effectiveness of the cooperation mechanism, it is necessary to align deadlines and procedures when several foreign investments linked to the same broader transaction are screened in several Member States. In such multi-country transactions, the applicant should file the different requests for authorisation in the Member States concerned simultaneously. In addition, those Member States should notify the requests simultaneously to the cooperation mechanism. To ensure an efficient handling of these multi-country transactions, the Member States concerned should coordinate and agree on whether the foreign investments are notifiable and when they should be notified. Furthermore, the Member States concerned should also coordinate on the final decision. If the Member States concerned intend to authorise the foreign investment with conditions, they should ensure that these conditions are compatible with one another and address cross-border risks adequately. Before prohibiting a foreign investment, the Member States concerned should consider whether a conditional authorisation with coordinated measures and their coordinated enforcement is not sufficient to address the likely effect on security or public order. The Commission should be able to participate in such coordination.

(34) To ensure the efficiency and effectiveness of the cooperation mechanism, it is necessary to align deadlines and procedures when several foreign investments linked to the same broader transaction are screened in several Member States. In such multi-country transactions, the applicant should file the different requests for authorisation in the Member States concerned within a limited timeframe. In addition, those Member States should endeavour to notify the requests to the cooperation mechanism within a limited timeframe. To ensure an efficient handling of these multi-country transactions, the Member States concerned should coordinate and agree on whether the foreign investments are notifiable and on the alignment of their procedural timelines. Furthermore, the Member States concerned should also coordinate on the content of their final decision. If the Member States concerned intend to authorise the foreign investment with conditions, they should ensure that these conditions are compatible with one another and address cross-border risks adequately. Before prohibiting a foreign investment, the Member States concerned should consider whether a conditional authorisation with coordinated measures and their coordinated enforcement is not sufficient to address the likely effect on security or public order. The Commission should be able to fully participate in such coordination.

Amendment 32

Proposal for a regulation

Recital 34 a (new)

Text proposed by the Commission

Amendment

(34a) In order to ensure an efficient and secure exchange of information between Member States and between Member States and the Commission under this Regulation, the Commission should establish and maintain a secure, encrypted digital system that complies with the highest standards of data protection and security. To safeguard the confidentiality and integrity of communications, all exchanges under this Regulation should take place exclusively through thas system, and the system should include monitoring and auditing capabilities to ensure compliance with security standards.

Amendment 33

Proposal for a regulation

Recital 34 b (new)

Text proposed by the Commission

Amendment

(34b) To ensure the secure and efficient submission and processing of filings related to foreign investment screening, and to alleviate the administrative burden on both applicants and authorities, a single electronic portal at the Union level should be established. That portal should provide a unified mechanism for applicants and their representatives to electronically file transactions with national screening authorities. The Commission should design the system to be user-friendly and ensure that it complies with applicable data protection regulations and security standards.

Amendment 34

Proposal for a regulation

Recital 35

Text proposed by the Commission

Amendment

(35) To ensure a consistent approach to the screening of investments across the Union, it is essential that the standards and criteria used to assess likely risks to security and public order are those set at Union level in this Regulation. Those should include the impact on the security, integrity and functioning of critical infrastructure, the availability of critical technologies (including key enabling technologies) and the continued supply of critical inputs for security or public order, the disruption, failure, loss or destruction of which would have a significant impact on security and public order in one or more Member States or on the Union as a whole. In that regard, Member States and the Commission should also take into account the context and circumstances of the foreign investment. This should include, in particular, whether an investor is controlled directly or indirectly, for example through significant funding, by the government of a third country or is involved in pursuing policy objectives of third countries to facilitate their military capabilities. In this context, if applicable, Member States and the Commission should also consider why the foreign investor, its beneficial owner or any of its subsidiaries or a person acting on behalf or at the direction of such a foreign investor is subject to any type of Union restrictive measures pursuant to Article 215 TFEU.

(35) To ensure a consistent approach to the screening of investments across the Union, it is essential that the standards and criteria used to assess likely risks to security and public order are those set at Union level in this Regulation. Those should include the impact on the security, integrity, functioning and resilience of critical infrastructure and of the internal market, the availability and uptake of critical technologies and knowledge (including key enabling technologies), the continued supply of critical inputs for security or public order, the disruption, failure, loss or destruction of which would have a significant impact on security and public order in one or more Member States or on the Union as a whole, the security of military facilities and other sensitive public facilities, and the capacity to address strategic dependencies. In that regard, Member States and the Commission should also take into account the context and circumstances of the foreign investment. This should include, in particular, whether an investor has engaged in illegal activities, including repeated failure to comply with Union legal standards, whether it is involved in pursuing policy objectives of third countries, or aims to facilitate their military capabilities or violations of international law. The pursuit of a third country’s policy objectives may involve its government exerting influence over undertakings, leading to significant market distortions. In this context, if applicable, Member States and the Commission should also consider why the foreign investor, its beneficial owner or any of its subsidiaries or a person acting on behalf or at the direction of such a foreign investor is subject to any type of Union restrictive measures pursuant to Article 215 TFEU.

Amendment 35

Proposal for a regulation

Recital 36

Text proposed by the Commission

Amendment

(36) Where the Member State where the foreign investment is planned or completed considers that a foreign investment is likely to negatively affect security or public order in the Union, it is appropriate to require that Member State to take appropriate measures to mitigate the risks, where such measures are available, and it considers them adequate, taking into utmost consideration the comments issued by other Member States and the opinion issued by the Commission, if applicable. Foreign investments should be prohibited only on an exceptional basis, and where mitigating measures or measures available under Union or national law other than the screening mechanism are not sufficient to mitigate the effect on security or public order.

(36) Where the host Member State considers that a foreign investment is likely to negatively affect security or public order in the Union, it is appropriate to require that Member State to take appropriate measures to mitigate the risks, where such measures are available, and it considers them adequate, taking into utmost consideration the comments issued by other Member States and the opinion issued by the Commission, if applicable. Foreign investments should be prohibited only on an exceptional basis, and where mitigating measures or measures available under Union or national law other than the screening mechanism are not sufficient to mitigate the effect on security or public order.

Amendment 36

Proposal for a regulation

Recital 37

Text proposed by the Commission

Amendment

(37) To support the implementation of the cooperation mechanism and to foster the exchange of good practices among Member States, the expert group on the screening of foreign investments set up pursuant to Regulation (EU) 2019/452 should be maintained.

(37) To support the implementation of the cooperation mechanism and to foster the exchange of good practices among Member States, the expert group on the screening of foreign investments set up pursuant to Regulation (EU) 2019/452 should be maintained and its tasks updated in accordance with this Regulation.

Amendment 37

Proposal for a regulation

Recital 37 a (new)

Text proposed by the Commission

Amendment

(37a) In order to enhance transparency and facilitate the process for investors, Member States should publish and regularly update guidance on screening procedures, timelines and risk assessment criteria. In order to ensure transparency and a consistent application of this Regulation across the Member States, the Commission should publish and regularly update guidance on the requirements at Union level and key concepts and assessment criteria established by this Regulation. The Commission should also maintain a publicly available list of all screening mechanisms established by the Member States.

Amendment 38

Proposal for a regulation

Recital 39

Text proposed by the Commission

Amendment

(39) To ensure the efficacy of the coordination mechanism, the contact points put in place by Member States and the Commission should be suitably placed in the respective administrations. The contact points should have the qualified staff and powers needed to carry out their work under the coordination mechanism and ensure a proper handling of confidential information.

(39) To ensure the efficacy of the coordination mechanism, the contact points put in place by Member States and the Commission should be suitably strategically placed within the respective administrations. The contact points should have the qualified staff and powers needed to carry out their work under the coordination mechanism and ensure a proper handling of confidential information in line with applicable legal frameworks.

Amendment 39

Proposal for a regulation

Recital 40

Text proposed by the Commission

Amendment

(40) Member States and the Commission should be encouraged to cooperate with the responsible authorities of like-minded third countries on issues related to the screening of foreign investments that could affect security or public order. Such administrative cooperation should aim to strengthen the effectiveness of the framework for screening foreign investments by Member States and the cooperation between Member States and the Commission pursuant to this Regulation. The Commission should be kept informed of such bilateral contacts to the extent that they relate to systemic issues related to investment screening. It should also be possible for the Commission to monitor developments with regard to screening mechanisms in third countries.

(40) Member States and the Commission should be encouraged to actively cooperate with the responsible authorities of like-minded third countries on issues related to the screening of foreign investments that could affect security or public order. Such administrative cooperation should aim to strengthen the effectiveness of the framework for screening foreign investments by Member States and the cooperation between Member States and the Commission pursuant to this Regulation. The Commission should be kept informed of such bilateral contacts to the extent that they relate to systemic issues, trends, or best practices related to investment screening. It should also be possible for the Commission to monitor developments with regard to screening mechanisms in third countries.

Amendment 40

Proposal for a regulation

Recital 40 a (new)

Text proposed by the Commission

Amendment

(40a) This Regulation should be considered amongst the wider package of the Union's defensive instruments aimed at addressing security risks, including the Foreign Subsidies Regulation and the International Procurement Instrument, and it should be ensured that the scope is set out in line with those measures to avoid duplication and to ensure a targeted and proportionate approach

Amendment 41

Proposal for a regulation

Recital 41

Text proposed by the Commission

Amendment

(41) Member States and the Commission shall ensure the confidentiality of the information they provide or receive in application of this Regulation, in accordance with national and Union law. Where the unauthorised disclosure of information would cause varying degrees of prejudice to the interests of the European Union, or of one or more of the Member States, the originator of the information should classify the information in accordance with national and Union law. When responding to requests of access to documents handled in application of this Regulation, Member States and the Commission shall coordinate and provide at least the level of protection of the protected interests available under Article 4 of Regulation (EC) 1049/20015 , with a view to protect the purpose of investigations. The Commission should take all necessary measures to ensure the protection of confidential information in compliance with, in particular, Commission Decision (EU, Euratom) 2015/4436 and Commission Decision (EU, Euratom) 2015/4447 . Similarly, Member States and the Commission should take all necessary measures to ensure compliance with the Agreement between the Member States of the European Union, meeting within the Council, regarding the protection of classified information exchanged in the interests of the Union8 . This includes, in particular, the obligation not to downgrade or declassify classified information without the prior written consent of the originator. Any non-classified sensitive information or information which is provided on a confidential basis should be handled as such by the authorities.

(41) Member States and the Commission should ensure the highest level of confidentiality of the information they provide or receive in application of this Regulation, in accordance with national and Union law. Where the unauthorised disclosure of information would cause varying degrees of prejudice to the interests of the European Union, or of one or more of the Member States, the originator of the information should classify the information in accordance with national and Union law. When responding to requests of access to documents handled in application of this Regulation, Member States and the Commission should coordinate and provide at least the level of protection of the protected interests available under Article 4 of Regulation (EC) 1049/20015 , with a view to safeguard the integrity of investigations. The Commission should take all necessary measures to ensure the protection of confidential information in compliance with, in particular, Commission Decision (EU, Euratom) 2015/4436 and Commission Decision (EU, Euratom) 2015/4447 . Similarly, Member States and the Commission should take all necessary measures to ensure compliance with the Agreement between the Member States of the European Union, meeting within the Council, regarding the protection of classified information exchanged in the interests of the Union8 . This includes, in particular, the obligation to maintain the confidentiality of classified information and not to downgrade or declassify such information without the prior written consent of the originator. Any non-classified sensitive information or information which is provided on a confidential basis should be handled as such by the authorities.

__________________

5 Regulation (EC) No 1049/2001 of the European Parliament and of the Council of 30 May 2001 regarding public access to European Parliament, Council and Commission documents (OJ L 145, 31.5.2001, p. 43–48, ELI: http://data.europa.eu/eli/reg/2001/1049/oj).

6 Commission Decision (EU, Euratom) 2015/443 of 13 March 2015 on Security in the Commission (OJ L 72, 17.3.2015, p. 41, ELI: http://data.europa.eu/eli/dec/2015/443/oj).

7 Commission Decision (EU, Euratom) 2015/444 of 13 March 2015 on the security rules for protecting EU classified information (OJ L 72, 17.3.2015, p. 53, ELI: http://data.europa.eu/eli/dec/2015/444/oj).

8 Agreement between the Member States of the European Union, meeting within the Council, regarding the protection of classified information exchanged in the interests of the European Union (OJ C 202, 8.7.2011, p. 13).

Amendment 42

Proposal for a regulation

Recital 43

Text proposed by the Commission

Amendment

(43) The Commission should draw up an annual report on the implementation of this Regulation and submit it to the European Parliament and to the Council. For greater transparency, the report should be made public. The report should be based on, among other things, reports submitted by all Member States to the Commission on a confidential basis with due respect to the need to ensure the protection of the confidentiality of certain information, in particular where the publication of data could affect the security or public order of the Union or jeopardise commercial confidentiality.

(43) The Commission should draw up an annual report on the implementation of this Regulation and submit it to the European Parliament and to the Council. For greater transparency, the report should be made public. The report should be based on, among other things, reports submitted by all Member States to the Commission on a confidential basis with due respect to the need to ensure the protection of the confidentiality of certain information, in particular where the publication of data could affect the security or public order of the Union or jeopardise commercial confidentiality. The report should include information on emerging trends and risk factors as well as updates on relevant legislative developments in the Member States.

Amendment 43

Proposal for a regulation

Recital 44

Text proposed by the Commission

Amendment

(44) The Commission should evaluate the functioning and effectiveness of this Regulation 5 years after the date of application of this Regulation and every 5 years after that and present a report to the European Parliament and to the Council. That report should include an assessment of whether or not this Regulation should be amended. Where the report proposes amending this Regulation, it may be accompanied by a legislative proposal.

(44) The Commission should evaluate the functioning and effectiveness of this Regulation 3 years after the date of application of this Regulation and every 5 years thereafter and present a report to the European Parliament and to the Council. That report should in particular include an assessment of the contribution of this Regulation to the economic security of the Union. It should include an assessment of whether or not this Regulation should be amended. Where the report proposes amending this Regulation, it may be accompanied by a legislative proposal.

Amendment 44

Proposal for a regulation

Recital 46

Text proposed by the Commission

Amendment

(46) When a foreign investment constitutes a concentration falling within the scope of Council Regulation (EC) No 139/200412 , the application of this Regulation should be without prejudice to the application of Article 21(4) of Regulation (EC) No 139/2004. This Regulation and Article 21(4) of Regulation (EC) No 139/2004 should be applied consistently. To the extent that the respective scope of application of those two Regulations overlap, the grounds for screening set out in Article 12 of this Regulation and the notion of legitimate interests within the meaning of Article 21(4), third subparagraph, of Regulation (EC) No 139/2004 should be interpreted coherently, without prejudice to the assessment of the compatibility of the national measures aimed at protecting those interests with the general principles and other provisions of Union law.

(46) When a foreign investment constitutes a concentration falling within the scope of Council Regulation (EC) No 139/200412 , the application of this Regulation should be without prejudice to the application of Article 21(4) of Regulation (EC) No 139/2004. This Regulation and Article 21(4) of Regulation (EC) No 139/2004 should be applied consistently. To the extent that the respective scope of application of those two Regulations overlap, the grounds for screening set out in Article 1 of this Regulation and the notion of legitimate interests within the meaning of Article 21(4), third subparagraph, of Regulation (EC) No 139/2004 should be interpreted coherently, without prejudice to the assessment of the compatibility of the national measures aimed at protecting those interests with the general principles and other provisions of Union law.

__________________

12 Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (OJ L 24, 29.1.2004, p. 1, ELI: http://data.europa.eu/eli/reg/2004/139/oj).

Amendment 45

Proposal for a regulation

Recital 49

Text proposed by the Commission

Amendment

(49) In order to take into account developments relating to projects or programmes of Union interest and to adapt the list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amendments to the Annexes to this Regulation. The list of projects and programmes of Union interest set out in Annex I should cover projects or programmes covered by EU law which provide for the development, maintenance or acquisition of critical infrastructure, critical technologies or critical inputs which are essential for security or public order. The list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union set out in Annex II should include areas where a foreign investment may affect security or public order in more than one Member State or in the Union as a whole through an Union target, which does not participate in or receive funds from a project or programme of Union interest. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making16 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(49) In order to take into account developments relating to projects or programmes of Union interest and to adapt the list of technologies, materials, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union, particularly in light of the risk assessments to be carried out under the Union’s Economic Security Strategy, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amendments to the Annexes to this Regulation. The list of projects and programmes of Union interest set out in Annex I should cover projects or programmes covered by EU law which provide for the development, maintenance or acquisition of critical infrastructure, critical technologies or critical inputs which are essential for security or public order. The list of technologies, materials, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union set out in Annex II should include areas where a foreign investment may affect security or public order in more than one Member State or in the Union as a whole through a Union target, which does not participate in or receive funds from a project or programme of Union interest. The Commission should in particular update Annex I in the event of new projects or programmes of Union interest being established in the context of future Multiannual Financial Frameworks. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making16 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

__________________

16 OJ L 123, 12.5.2016, p. 1.

Amendment 46

Proposal for a regulation

Recital 50

Text proposed by the Commission

Amendment

(50) In order to ensure uniform conditions for the implementation of this Regulation, in particular as regards the form to be used to provide minimum information about foreign investments, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council17 .

(50) In order to ensure uniform conditions for the implementation of this Regulation, in particular as regards the forms to be used to provide minimum information about foreign investments and to file requests for authorisation, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council17 .

__________________

17 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13, ELI: http://data.europa.eu/eli/reg/2011/182/oj).

Amendment 47

Proposal for a regulation

Recital 51

Text proposed by the Commission

Amendment

(51) Regulation (EU) 2019/452 should be repealed. In order to allow sufficient time for Member States and entities to prepare for the implementation, this Regulation should apply as of [add date: 15 months after entry into force]. In the transitional period between the entry into force and the application of this Regulation, Regulation (EU) 2019/452 should continue to apply,

(51) Regulation (EU) 2019/452 should be repealed. In order to allow sufficient time for Member States and entities to prepare for the implementation, this Regulation should apply as of [add date: 12 months after entry into force]. It should be applicable regardless of the establishment of the single portal for filing requests for authorisation. In the transitional period between the entry into force and the application of this Regulation, Regulation (EU) 2019/452 should continue to apply,

Amendment 48

Proposal for a regulation

Article 1 – paragraph 1

Text proposed by the Commission

Amendment

1. This Regulation establishes a Union framework for the screening, by Member States, of foreign investments in their territory, on the grounds of security or public order.

1. This Regulation establishes a Union framework for the screening, by Member States, of foreign investments in their territory, on the grounds of security or public order, including economic security.

Amendment 49

Proposal for a regulation

Article 1 – paragraph 2

Text proposed by the Commission

Amendment

2. This Regulation establishes a cooperation mechanism to enable Member States and the Commission to exchange information on foreign investments, assess their potential impact on security or public order, and identify potential concerns that shall be addressed by the Member State that is screening the foreign investment.

2. This Regulation establishes a cooperation mechanism to enable Member States and the Commission to exchange relevant information on foreign investments, assess their potential impact on security or public order, and identify and address potential concerns.

Amendment 50

Proposal for a regulation

Article 1 – paragraph 3

Text proposed by the Commission

Amendment

3. Member States may adopt or maintain in force national provisions in fields not coordinated by this Regulation.

3. Member States may adopt or maintain in force national provisions in fields not covered by this Regulation, provided that such provisions do not undermine and are consistent with the objectives of this Regulation.

Amendment 51

Proposal for a regulation

Article 1 – paragraph 5

Text proposed by the Commission

Amendment

5. This Regulation is without prejudice to Member States’ obligations under the Treaties, in particular Articles 49 and 63 TFEU. Member States shall ensure that any measure taken in the framework of this Regulation complies with those obligations. This Regulation is without prejudice to the powers of the Commission under Article 258 TFEU to ensure compliance with Union law.

5. This Regulation is without prejudice to Member States’ obligations under the Treaties, in particular Articles 49 and 63 TFEU, and to their right to take measures which are justified on the ground of public policy or public security under Article 65 TFEU. Member States shall ensure that any measure taken in the framework of this Regulation complies with those obligations. This Regulation is without prejudice to the powers of the Commission under Article 258 TFEU to ensure compliance with Union law.

Amendment 52

Proposal for a regulation

Article 1 – paragraph 5 a (new)

Text proposed by the Commission

Amendment

5a. Investments by virtue of a resolution tool and internal restructurings do not fall within the scope of this Regulation.

Amendment 53

Proposal for a regulation

Article 2 – paragraph 1 – point 1

Text proposed by the Commission

Amendment

(1) ‘foreign investment’ means a foreign direct investment or an investment within the Union with foreign control, which enables effective participation in the management or control of a Union target;

(1) ‘foreign investment’ means an investment of any kind, carried out either by a foreign investor itself or through a foreign investor’s subsidiary in the Union, aiming to establish or to maintain lasting and direct links between the foreign investor and a Union target, to which the foreign investor makes capital available in order to carry out an economic activity in a Member State, enabling effective participation in the management or control of that Union target;

Amendment 54

Proposal for a regulation

Article 2 – paragraph 1 – point 1 a (new)

Text proposed by the Commission

Amendment

(1a) ‘greenfield investment’ means a foreign investment carried out through the establishment of new facilities or of a new undertaking for the performance of a new economic activity in the Union;

Amendment 55

Proposal for a regulation

Article 2 – paragraph 1 – point 1 b (new)

Text proposed by the Commission

Amendment

(1b) ‘resolution tool’ means any resolution tool in accordance with Directive 2014/59/EU, Regulation (EU) No 806/2014, Regulation (EU) 2021/23, Regulation (EU) No 1093/2010 or Regulation (EU) No 648/2012;

Amendment 56

Proposal for a regulation

Article 2 – paragraph 1 – point 1 c (new)

Text proposed by the Commission

Amendment

(1c) ‘internal restructuring’ means changes in the effective participation in the management or control of a Union target that occur within a chain of ownership ultimately resulting in no change of ownership or control of the target;

Amendment 57

Proposal for a regulation

Article 2 – paragraph 1 – point 2

Text proposed by the Commission

Amendment

(2) ‘foreign direct investment’ means an investment of any kind by a foreign investor aiming to establish or to maintain lasting and direct links between the foreign investor and an existing or to be established Union target, and to which target the foreign investor makes capital available in order to carry out an economic activity in a Member State;

deleted

Amendment 58

Proposal for a regulation

Article 2 – paragraph 1 – point 3

Text proposed by the Commission

Amendment

(3) ‘investment within the Union with foreign control’ means an investment of any kind carried out by a foreign investor through the foreign investor’s subsidiary in the Union, that aims to establish or to maintain lasting and direct links between the foreign investor and a Union target that exists or is to be established, and to which target the foreign investor makes capital available in order to carry out an economic activity in a Member State;

deleted

Amendment 59

Proposal for a regulation

Article 2 – paragraph 1 – point 7

Text proposed by the Commission

Amendment

(7) ‘foreign investor’s subsidiary in the Union’ means an economically active undertaking established under the laws of a Member State meeting the conditions set out in Article 22(1) of Directive 2013/34/EU of the European Parliament and of the Council of 26 June 201318 , and directly or indirectly controlled by a foreign investor;

(7) ‘foreign investor’s subsidiary in the Union’ means an undertaking established under the laws of a Member State, meeting the conditions set out in Article 22(1) of Directive 2013/34/EU of the European Parliament and of the Council of 26 June 201318 , and directly or indirectly controlled by a foreign investor;

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18 Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19–76, ELI: http://data.europa.eu/eli/dir/2013/34/oj).

Amendment 60

Proposal for a regulation

Article 2 – paragraph 1 – point 7 a (new)

Text proposed by the Commission

Amendment

(7a) ‘beneficial owner’ means any natural person who ultimately owns or controls a legal entity or similar legal arrangement;

Amendment 61

Proposal for a regulation

Article 2 – paragraph 1 – point 7 b (new)

Text proposed by the Commission

Amendment

(7b) ‘opaque ownership structure’ means an arrangement in which the ownership or control of an entity is unclear, concealed or difficult to ascertain due to, inter alia, the use of complex legal structures, multiple layers of ownership, nominee shareholders, trusts, or other mechanisms that obscure the identity of the beneficial owner;

Amendment 62

Proposal for a regulation

Article 2 – paragraph 1 – point 8

Text proposed by the Commission

Amendment

(8) ‘Union target’ means an undertaking established under the laws of a Member State;

(8) ‘Union target’ means an undertaking established or to be established under the laws of a Member State;

Amendment 63

Proposal for a regulation

Article 2 – paragraph 1 – point 9

Text proposed by the Commission

Amendment

(9) ‘Union target economically active in one of the areas listed in Annex II’ means an Union target active or intending to be active in technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union, listed in Annex II, including through ownership, use, production or supply thereof;

(9) ‘Union target economically active in one of the areas listed in Annex II’ means an Union target active or intending to be active in the design, development, extraction, processing, production, recycling or supply of the technologies, materials, assets, facilities, equipment, networks, systems, services and economic activities listed in Annex II;

Amendment 64

Proposal for a regulation

Article 2 – paragraph 1 – point 18

Text proposed by the Commission

Amendment

(18) ‘projects or programmes of Union interest’ means projects or programmes covered by Union law that provide for the development, maintenance or acquisition of critical infrastructure, critical technologies or critical inputs which are essential for security or public order and are listed in Annex I;

(18) ‘projects or programmes of Union interest’ means projects or programmes covered by Union law that provide for the development, maintenance or acquisition of critical infrastructure, critical technologies, critical and essential services or critical inputs which are essential for security or public order and are listed in Annex I;

Amendment 65

Proposal for a regulation

Article 2 – paragraph 1 – point 18 a (new)

Text proposed by the Commission

Amendment

(18a) ‘host Member State’ means the Member State in which a foreign investment is planned or completed;

Amendment 66

Proposal for a regulation

Article 2 – paragraph 1 – point 23 a (new)

Text proposed by the Commission

Amendment

(23a) ‘critical infrastructure’ means an asset, a facility, equipment, a network or a system, or a part of an asset, a facility, equipment, a network or a system, which is necessary for the provision of an essential service;

Amendment 67

Proposal for a regulation

Article 3 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall ensure that the screening mechanism referred to in paragraph 1 applies at least to investments subject to an authorisation requirement pursuant to Article 4(4).

2. Member States shall ensure that the screening mechanism referred to in paragraph 1 applies at least to investments subject to an authorisation requirement pursuant to Article 4(4) and (4a).

Amendment 68

Proposal for a regulation

Article 3 – paragraph 3

Text proposed by the Commission

Amendment

3. Each Member State shall notify to the Commission the measures adopted pursuant to paragraph 1 no later than [date: 15 months after entry into force]. Member States shall thereafter notify the Commission of any amendment to their screening mechanism within 30 days of the adoption of the amendment.

3. Each Member State shall notify to the Commission the measures adopted pursuant to paragraph 1 no later than ... [12 months from the date of entry into force of this Regulation]. Member States shall thereafter notify the Commission of any amendment to their screening mechanism within 30 days of the adoption of the amendment.

Amendment 69

Proposal for a regulation

Article 3 – paragraph 4

Text proposed by the Commission

Amendment

4. The Commission shall make publicly available a list of Member States’ screening mechanisms no later than 3 months after having received all the notifications referred to in paragraph 3 or by [date: 21 months after entry into force], whichever occurs first. The Commission shall keep that list up to date.

4. The Commission shall make publicly available a list of Member States’ screening mechanisms no later than 3 months after having received all the notifications referred to in paragraph 3 or by ... [15 months from the date of entry into force of this Regulation], whichever occurs first. The Commission shall keep that list up to date.

Amendment 70

Proposal for a regulation

Article 4 – paragraph 2 – point a

Text proposed by the Commission

Amendment

(a) adequate procedures shall be provided for the screening authority to determine whether it has jurisdiction over a foreign investment filed for authorisation and to carry out an initial review followed by, where necessary, an in-depth investigation to determine whether that foreign investment is likely to negatively affect security or public order. The purpose of the in-depth investigation shall be, in particular, to determine whether a screening decision as referred to in Article 14(1) is appropriate and to determine its content.

(a) adequate procedures and resources shall be provided for the screening authority to determine whether it has jurisdiction over a foreign investment filed for authorisation. The screening shall comprise an initial review of no more than 35 calendar days following the receipt of the complete request for authorisation, followed by, where necessary, an in-depth investigation to determine whether that foreign investment is likely to negatively affect security or public order, taking into account at least the criteria laid down in Article 13. The purpose of the in-depth investigation shall be, in particular, to determine whether a screening decision as referred to in Article 14(1) is appropriate and to determine its content;

Amendment 71

Proposal for a regulation

Article 4 – paragraph 2 – point a a (new)

Text proposed by the Commission

Amendment

(aa) the screening authority shall be empowered to screen greenfield investments;

Amendment 72

Proposal for a regulation

Article 4 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b) the screening authority shall monitor and ensure compliance with the screening mechanism and screening decisions. In particular, it shall put in place adequate procedures to identify and prevent circumvention of the screening mechanism and screening decisions;

(b) the screening authority shall monitor and ensure compliance with the screening mechanism and screening decisions. In particular, it shall put in place adequate procedures and resources to identify, address and prevent circumvention of the screening mechanism and screening decisions;

Amendment 73

Proposal for a regulation

Article 4 – paragraph 2 – point c

Text proposed by the Commission

Amendment

(c) the screening authority shall be empowered to start screening foreign investments by its own initiative for at least 15 months after the completion of a foreign investment that is not subject to an authorisation requirement where the screening authority has grounds to consider that the foreign investment may affect security or public order;

(c) the screening authority shall be empowered to start screening foreign investments by its own initiative within 15 months of the completion of a foreign investment that is not subject to an authorisation requirement where the screening authority has grounds to consider that the foreign investment may affect security or public order;

Amendment 74

Proposal for a regulation

Article 4 – paragraph 2 – point d

Text proposed by the Commission

Amendment

(d) confidential information, including commercially sensitive information, made available to the Member State carrying out the screening shall be protected;

(d) confidential information made available to the Member State carrying out the screening, including commercially sensitive information and information designated as confidential by the undertakings concerned, shall be protected;

Amendment 75

Proposal for a regulation

Article 4 – paragraph 2 – point e

Text proposed by the Commission

Amendment

(e) foreign investors, foreign investors’ subsidiaries in the Union through which the foreign investment is carried out and undertakings concerned by a screening decision shall have the possibility to seek judicial recourse against that screening decision;

(e) foreign investors, foreign investors’ subsidiaries in the Union through which the foreign investment is carried out and undertakings concerned by a screening decision shall have the possibility to seek judicial recourse against that screening decision in a timely and effective manner;

Amendment 76

Proposal for a regulation

Article 4 – paragraph 2 – point f

Text proposed by the Commission

Amendment

(f) an annual report shall be made public, and shall include information on relevant legislative developments in the Member State and aggregate and anonymised data on the investments screened, including the outcome of screening decisions, nationalities, or country of establishment as the case may be, of parties to the investments notified to the screening authority, and the economic sectors in which those transactions took place;

(f) an annual report shall be made public, and shall include information on relevant legislative developments in the Member State and aggregate and anonymised data on the investments screened, including the outcome of screening decisions, nationalities, or country of establishment as the case may be, of parties to the investments notified to the screening authority, and the economic sectors in which those transactions took place, as well as the projects or programmes of Union interest concerned, where applicable;

Amendment 77

Proposal for a regulation

Article 4 – paragraph 2 – point g

Text proposed by the Commission

Amendment

(g) foreign investments subject to an authorisation requirement as referred to in paragraph 4 shall be filed by the applicant requesting authorisation with the screening authority and shall be screened before the foreign investment is completed;

(g) foreign investments subject to an authorisation requirement as referred to in paragraphs 4 and 4a shall be filed by the applicant requesting authorisation with the screening authority and shall be screened before the foreign investment is completed;

Amendment 78

Proposal for a regulation

Article 4 – paragraph 2 – point g a (new)

Text proposed by the Commission

Amendment

(ga) Member States shall implement standardised procedural milestones and structured communication points with applicants throughout the process, including formal acknowledgment of complete filing within 5 working days and informing the undertakings concerned where the screening authority decides to open an in-depth investigation;

Amendment 79

Proposal for a regulation

Article 4 – paragraph 2 – point h

Text proposed by the Commission

Amendment

(h) the screening authority shall be empowered to impose mitigating measures, prohibit, or unwind foreign investments subject to an authorisation requirement as referred to in paragraph 4 that were not filed or that were filed after completion and, where applicable, address effectively the consequences of non-compliance with the mitigating measures;

(h) the screening authority shall be empowered to impose mitigating measures, prohibit, or unwind foreign investments subject to an authorisation requirement as referred to in paragraphs 4 or 4a that were not filed or that were filed after completion and, where applicable, address effectively the consequences of non-compliance with the mitigating measures;

Amendment 80

Proposal for a regulation

Article 4 – paragraph 2 – point h a (new)

Text proposed by the Commission

Amendment

(ha) screening authorities shall be empowered to impose effective, proportionate and dissuasive penalties on foreign investors who fail to request an authorisation where required to do so, fail to comply with mitigating measures, or attempt to otherwise circumvent the screening mechanism or screening decisions. Penalties shall reflect the scale and nature of the violation;

Amendment 81

Proposal for a regulation

Article 4 – paragraph 2 – point h b (new)

Text proposed by the Commission

Amendment

(hb) the screening authority shall put in place adequate procedures and secure channels to receive information on foreign investments from civil society organisations, economic operators, and social partners;

Amendment 82

Proposal for a regulation

Article 4 – paragraph 3

Text proposed by the Commission

Amendment

3. Before taking a decision to authorise a foreign investment subject to mitigating measures or to prohibit a foreign investment, Member States shall inform the applicant requesting an authorisation and state the reasons on which they intend to take their decision, subject to the protection of information the disclosure of which would be contrary to the security or public order interests of the EU or one or more of the Member States and without prejudice to Union and national law concerning the protection of confidential information. Member States shall give the foreign investor the opportunity to make their views known before taking such decision.

3. Before taking a decision to authorise a foreign investment subject to mitigating measures or to prohibit a foreign investment, Member States shall inform the applicant requesting an authorisation and state the reasons on which they intend to take their decision, subject to the protection of information the disclosure of which would be contrary to the security or public order interests of the EU or one or more of the Member States and without prejudice to Union and national law concerning the protection of confidential information. Member States shall give the foreign investor the opportunity to make their views known and shall take that input into account before transmitting their draft decision pursuant to Article 7(8).

Amendment 83

Proposal for a regulation

Article 4 – paragraph 4 – point a

Text proposed by the Commission

Amendment

(a) is part of or participates in one of the projects or programmes of Union interest listed in Annex I, including as a recipient of funds as defined in Article 2 paragraph 53 of Regulation 2018/1046 of the European Parliament and of the Council19 , or

(a) is part of or participates in one of the projects or programmes of Union interest listed in Annex I, including as a recipient of funds as defined in Article 2, point (59), of Regulation (EU) 2024/2509 of the European Parliament and of the Council19a , or

__________________

19 Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1–222, ELI: http://data.europa.eu/eli/reg/2018/1046/oj).

19a Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union.

Amendment 84

Proposal for a regulation

Article 4 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

4a. Member States shall also ensure that their screening mechanisms impose an authorisation requirement for greenfield foreign investments where:

(a) the conditions set out in point (a) or point (b) of paragraph 4 of this Article are met;

(b) the investor meets one or more of the conditions set out in Article 5(1), point (b), points (i) to (iii); and

(c) the value of the transaction is at least EUR 250 million.

Amendment 85

Proposal for a regulation

Article 5 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1. Member States shall notify the Commission and the other Member States through the cooperation mechanism of any foreign investment in a Union target established in their territory that:

1. Member States shall notify the Commission and the other Member States through the cooperation mechanism of any foreign investment in a Union target in their territory that:

Amendment 86

Proposal for a regulation

Article 5 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) meets the conditions set out in Article 4(4) point (a); or

(a) meets the conditions set out in Article 4(4), point (a), or Article 4(4a); or

Amendment 87

Proposal for a regulation

Article 5 – paragraph 1 – point b – point i

Text proposed by the Commission

Amendment

(i) the foreign investor or the foreign investor’s subsidiary in the Union is directly or indirectly controlled by the government, including state bodies, regional or local authorities or armed forces, of a third country, including through ownership structure, significant funding, special rights or state-appointed directors or managers;

(i) the foreign investor or the foreign investor’s subsidiary in the Union is directly or indirectly controlled, by the government, including state bodies, regional or local authorities or armed forces, of a third country, including through ownership structure, significant funding, special rights or state-appointed directors or managers, or other features aimed at influencing management decisions;

Amendment 88

Proposal for a regulation

Article 5 – paragraph 1 – point b – point ii

Text proposed by the Commission

Amendment

(ii) the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of, such a foreign investor is subject to Union restrictive measures pursuant to Article 215 TFEU; or

(ii) the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of, such a foreign investor is subject to Union restrictive measures pursuant to Article 215 TFEU;

Amendment 89

Proposal for a regulation

Article 5 – paragraph 1 – point b – point iii

Text proposed by the Commission

Amendment

(iii) the foreign investor or any of its subsidiaries was involved in a foreign investment previously screened by a Member State and was not authorised or only authorised with conditions; to determine this, the notifying Member State shall rely on information available to them, including the information contained in the secure database set up pursuant to Article 7(10) and information provided by the foreign investor on this matter.

(iii) the foreign investor or any of its subsidiaries was involved in a foreign investment previously screened by a Member State that was not authorised or only authorised with conditions; to determine this, the notifying Member State shall rely on information available to them, including the information contained in the secure database set up pursuant to Article 7(10) and information provided by the foreign investor on this matter; or

Amendment 90

Proposal for a regulation

Article 5 – paragraph 1 – point b – point iii a (new)

Text proposed by the Commission

Amendment

(iiia) the ownership structure of the investor is opaque.

Amendment 91

Proposal for a regulation

Article 5 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall notify the Commission and the other Member States of any foreign investment in a Union target established in their territory where they initiate an in-depth investigation under their screening procedures. Furthermore, Member States shall notify the Commission and the other Member States of any foreign investment in a Union target established in their territory, in exceptional cases, where they intend to impose a mitigating measure or to prohibit the transaction without an in-depth investigation.

2. Member States shall notify the Commission and the other Member States of any foreign investment in their territory that has not been notified pursuant to paragraph 1, where they initiate an in-depth investigation under their screening procedures.

Amendment 92

Proposal for a regulation

Article 5 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

2a. Member States shall notify, at the earliest possible time, the Commission and the other Member States of any foreign investment in their territory where, in exceptional cases, they intend to impose a mitigating measure or to prohibit the transaction without an in-depth investigation.

Amendment 93

Proposal for a regulation

Article 5 – paragraph 3 – subparagraph 1

Text proposed by the Commission

Amendment

Member States may notify any foreign investment that do not meet the conditions set out in paragraphs 1 and 2 if the Member State where the Union target is established considers that a foreign investment could be of interest to the other Member States and the Commission from a security or public order perspective, including where the Union target has significant operations in other Member States, or belongs to a corporate group that has several companies in different Member States which are economically active in one of the areas listed in Annex II.

Member States shall notify any foreign investment that does not meet the conditions set out in paragraphs 1 and 2 if the host Member State considers that a foreign investment could be of interest to the other Member States and the Commission from a security or public order perspective, including where the Union target has significant operations in other Member States, or belongs to a corporate group that has several companies in different Member States which are economically active in one of the areas listed in Annex II.

Amendment 94

Proposal for a regulation

Article 5 – paragraph 3 – subparagraph 2

Text proposed by the Commission

Amendment

Where a Member State intends to notify a foreign investment in its territory that forms part of a multi-country transaction pursuant to Article 6(2), it shall coordinate with the other Member States who received the request for authorisation. The respective Member States shall notify the multi-country transaction and they shall endeavour to send their notifications to the cooperation mechanism on the same day.

deleted

Amendment 95

Proposal for a regulation

Article 6 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1. Member States shall ensure that a notification pursuant to Article 5 contains the information referred to in Article 10(1) and is sent to the Commission and other Member States via the secure and encrypted system referred to in Article 12(4):

1. Member States shall ensure that a notification pursuant to Article 5 contains the information referred to in Article 10(1) and is sent to the Commission and other Member States:

Amendment 96

Proposal for a regulation

Article 6 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) within 15 calendar days of receiving the respective request for authorisation for foreign investments meeting any of the conditions set out in Article 5(1) or (3);

(a) within 15 calendar days of receiving the complete request for authorisation for foreign investments meeting any of the conditions set out in Article 5(1), (2a) or (3);

Amendment 97

Proposal for a regulation

Article 6 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b) within 60 calendar days of receiving the request for authorisation for foreign investments meeting the conditions set out in Article 5(2).

(b) within 5 calendar days of initiating an in-depth investigation for foreign investments meeting the conditions set out in Article 5(2).

Amendment 98

Proposal for a regulation

Article 6 – paragraph 2

Text proposed by the Commission

Amendment

2. The following procedures shall apply to multi-country transactions:

deleted

(a) applicants requesting an authorisation shall file their requests for authorisation in all relevant Member States on the same day, and each request for authorisation shall make reference to the other requests;

(b) where a Member State receives a request for authorisation that meets the conditions set out in point (a), it shall coordinate with the other Member States concerned, inter alia, to determine whether point (c) or (d) of this paragraph is applicable; the Commission may participate in such coordination upon request from one or more Member States;

(c) if the requests for authorisation concern a foreign investment meeting any of the conditions set out in Article 5(1), the respective Member States shall send their notifications to the cooperation mechanism on the same day and within the deadline laid down in point (a) of paragraph 1 of this Article;

(d) if the requests for authorisation concern a foreign investment meeting the conditions set out in Article 5(2), the respective Member States shall endeavour to send their notifications to the cooperation mechanism on the same day.

Amendment 99

Proposal for a regulation

Article 6 a (new)

Text proposed by the Commission

Amendment

Article 6a

Specific rules applicable to multi-country transactions

1. Applicants requesting an authorisation for an investment in several Member States shall file their requests for authorisation in all relevant Member States within 3 calendar days of the first request for authorisation, and each request for authorisation shall make reference to the other requests.

2. Where a Member State receives a request for authorisation as referred to in paragraph 1, it shall coordinate with the other Member States concerned and the Commission, inter alia to determine whether the investment is notifiable.

3. If the requests for authorisation concern a foreign investment meeting any of the conditions set out in Article 5(1), the Member States concerned shall send their notifications to the cooperation mechanism within 3 calendar days of the first request for authorisation and within the deadline laid down in Article 6, point (a).

4. If the requests for authorisation concern a foreign investment meeting the conditions set out in Article 5(2), the Member States concerned shall endeavour to send their notifications to the cooperation mechanism within a limited timeframe and within the deadline laid down in Article 6(1), point (b).

5. The Member States concerned shall coordinate closely throughout the procedure. In particular, they shall endeavour to align the timelines of their respective screening procedures and to ensure that their respective screening decisions are compatible with each other. Where applicable, they shall endeavour to take their final screening decision on the same day.

Amendment 100

Proposal for a regulation

Article 7 – title

Text proposed by the Commission

Amendment

Comments by Member States and opinions by the Commission on notified foreign investments

Comments by Member States and opinions and decisions by the Commission on notified foreign investments

Amendment 101

Proposal for a regulation

Article 7 – paragraph 1 – subparagraph 1 – introductory part

Text proposed by the Commission

Amendment

Any Member State may issue duly motivated comments to the notifying Member State via the secure and encrypted system referred to in Article 12(4). A Member State may issue such comments if it:

Any Member State may issue duly motivated comments to the notifying Member State. A Member State may issue such comments if it:

Amendment 102

Proposal for a regulation

Article 7 – paragraph 2 – subparagraph 1 – introductory part

Text proposed by the Commission

Amendment

The Commission may issue a duly motivated opinion addressed to the notifying Member State via the secure and encrypted system referred to in Article 12(4). The Commission may issue such an opinion if:

The Commission may issue a duly motivated opinion addressed to the notifying Member State. The Commission shall issue such an opinion if:

Amendment 103

Proposal for a regulation

Article 7 – paragraph 2 – subparagraph 2 a (new)

Text proposed by the Commission

Amendment

Where appropriate, the opinion of the Commission may propose measures aimed at mitigating the likely negative effect of the investment on security and public order.

Amendment 104

Proposal for a regulation

Article 7 – paragraph 3

Text proposed by the Commission

Amendment

3. The Commission may issue a duly motivated opinion addressed to all Member States if it considers that several foreign investments or other similar investments if they were to be made, taken together, and having regard to their characteristics could affect the security or public order of the Union. After a Commission opinion is issued, the Commission may, as appropriate, discuss with Member States how to address the identified risks.

3. The Commission shall issue a duly motivated opinion addressed to all Member States if it considers that several foreign investments or other similar investments if they were to be made, taken together, and having regard to their characteristics could affect the security or public order of the Union. After a Commission opinion is issued, the Commission shall, as appropriate, discuss with Member States the measures to address the identified risks.

Amendment 105

Proposal for a regulation

Article 7 – paragraph 4 – point a

Text proposed by the Commission

Amendment

(a) send opinions meeting the conditions set out in points (a) and (c) of paragraph 2 to all Member States that provided comments and notify the other Member States that an opinion was issued via the secure and encrypted system referred to in Article 12(4);

(a) send opinions meeting the conditions set out in points (a) and (c) of paragraph 2 to all Member States that provided comments and notify the other Member States that an opinion was issued;

Amendment 106

Proposal for a regulation

Article 7 – paragraph 4 – point b

Text proposed by the Commission

Amendment

(b) send opinions meeting the conditions set out in point (b) of paragraph 2 and opinions meeting the conditions in paragraph 3 to all Member States via the secure and encrypted system referred to in Article 12(4).

(b) send opinions meeting the conditions set out in point (b) of paragraph 2 and opinions meeting the conditions in paragraph 3 to all Member States.

Amendment 107

Proposal for a regulation

Article 7 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

4a. The notifying Member State may invite the Commission to issue an opinion or other Member States to issue comments.

Amendment 108

Proposal for a regulation

Article 7 – paragraph 5

Text proposed by the Commission

Amendment

5. Where a Member State where the foreign investment is planned or completed receives a comment from another Member State pursuant to paragraph 1 or an opinion from the Commission pursuant to paragraph 2 or 3, it shall give utmost consideration to such a comment or opinion.

5. Where a host Member State receives a comment from another Member State pursuant to paragraph 1 or an opinion from the Commission pursuant to paragraph 2 or 3, it shall give utmost consideration to such a comment or opinion.

Amendment 109

Proposal for a regulation

Article 7 – paragraph 6

Text proposed by the Commission

Amendment

6. Following the receipt of a comment pursuant to paragraph 1, the Member State shall set up a meeting with the Member States who issued comments to discuss how to best address the risks identified. If the Member State where the foreign investment is planned or completed disagrees with the risks identified or, if applicable, the measure proposed with the comment, the Member States shall aim to identify alternative solutions. Where the comment concerns a multi-country transaction, the other Member States who notified the foreign investment shall also be invited to discuss whether the intended outcomes are compatible with one another and, where applicable, the intended conditions are able to address identified cross-border risks adequately. The Commission shall be invited to any such meetings.

6. Following the receipt of a comment pursuant to paragraph 1 or an opinion pursuant to paragraph 2, the host Member State shall consult the Member States that issued comments, where applicable, and the Commission. In the framework of that consultation, the host Member State shall set up a meeting with those Member States, where applicable, and the Commission to discuss how to best address the risks identified. If the host Member State disagrees with the risks identified or, if applicable, the measure proposed with the comment or opinion, the Member States and the Commission shall aim to identify alternative solutions. Where the comment or opinion concerns a multi-country transaction, the other Member States that notified the foreign investment shall also be invited to that meeting to discuss whether the intended outcomes are compatible with one another and, where applicable, whether the intended conditions are able to address identified cross-border risks adequately.

Amendment 110

Proposal for a regulation

Article 7 – paragraph 7

Text proposed by the Commission

Amendment

7. Following the receipt of an opinion pursuant to paragraph 2 or 3, the procedure set out in paragraph 6 shall apply mutatis mutandis.

deleted

Amendment 111

Proposal for a regulation

Article 7 – paragraph 8 – introductory part

Text proposed by the Commission

Amendment

8. Following the receipt of an opinion pursuant to paragraph 2 or 3, the Member State where the foreign investment is planned or completed shall:

8. Following the meeting referred to in paragraph 6, the host Member State shall transmit to the respective Member States and the Commission its draft screening decision and provide a written explanation on:

Amendment 112

Proposal for a regulation

Article 7 – paragraph 8 – point a

Text proposed by the Commission

Amendment

(a) notify its screening decision to the respective Member States and to the Commission via the secure and encrypted system referred to in Article 12(4) no later than 3 calendar days after it was sent to the respective parties to the foreign investment;

deleted

Amendment 113

Proposal for a regulation

Article 7 – paragraph 8 – point a a (new)

Text proposed by the Commission

Amendment

(aa) the extent to which it gave the Member States’ comments or the Commission opinion utmost consideration; and

Amendment 114

Proposal for a regulation

Article 7 – paragraph 8 – point a b (new)

Text proposed by the Commission

Amendment

(ab) where applicable, the reason for its disagreement with the Member States’ comments or the Commission opinion.

Amendment 115

Proposal for a regulation

Article 7 – paragraph 8 – point b

Text proposed by the Commission

Amendment

(b) provide a written explanation to the respective Member States and the Commission via the secure and encrypted system referred to in Article 12(4) no later than 7 calendar days after the screening decision was notified pursuant to paragraph (a) on:

deleted

(i) the extent to which it gave the Member States’ comments or the Commission opinion utmost consideration; or

(ii) the reason for its disagreement with the Member States’ comments or the Commission opinion.

Amendment 116

Proposal for a regulation

Article 7 – paragraph 9

Text proposed by the Commission

Amendment

9. Where the Member States or the Commission indicate that the screening decision referred to in paragraph 8, subparagraph (a), of this Article does not give utmost consideration to their comments provided pursuant to pursuant to paragraph 1 or the opinion provided pursuant to paragraph 2 or 3, the Member State where the investment is planned or completed shall organise a meeting to explain the obstacles encountered or the reasons for disagreement and shall endeavour to identify solutions, should a similar situation arise in the future. Where the screening decision concerns a multi-country notification, the other Member States who notified the foreign investment to the cooperation mechanism shall also be invited. The Commission shall be invited to any meetings organised pursuant to this paragraph.

9. Where a Member States or the Commission considers that a draft screening decision referred to in paragraph 8 of this Article, authorising a foreign investment under Article 14(1), point (a), or Article 14(2) does not adequately address or mitigate the risks to security and public order, it may raise a duly justified objection. The objection shall be notified to the host Member State and, where applicable, the other Member States that issued comments and the Commission. The host Member State shall suspend its screening procedure until the Commission has adopted a decision pursuant to paragraphs 9b and 9c of this Article. The host Member State shall inform the foreign investor of the suspension.

Amendment 117

Proposal for a regulation

Article 7 – paragraph 9 a (new)

Text proposed by the Commission

Amendment

9a. Where a Member State or the Commission has raised an objection pursuant to paragraph 9 of this Article, and without prejudice to Article 346(1), point (a), TFEU, the host Member State shall transmit to the Commission all documents and information on which its draft decision is based. The Member State that raised an objection pursuant to paragraph 9 of this Article shall transmit all documents and information on which its objection is based.

Amendment 118

Proposal for a regulation

Article 7 – paragraph 9 b (new)

Text proposed by the Commission

Amendment

9b. Where, taking into account the criteria laid down in Article 13, the documents and information received pursuant to paragraph 9a of this Article, as well as, where applicable, the comments provided by Member States pursuant to Article 7(1) or Article 9(7), the Commission concludes that the draft screening decision, as modified by the host Member State where appropriate, effectively addresses the foreign investment’s potential effect on security and public order, it shall decide not to object to the adoption of the draft screening decision by the Member State.

Amendment 119

Proposal for a regulation

Article 7 – paragraph 9 c (new)

Text proposed by the Commission

Amendment

9c. Where the Commission finds that the host Member State’s draft screening decision referred to in paragraph 8 does not adequately mitigate risks to security and public order, it shall adopt a decision to:

(a) authorise the foreign investment subject to mitigating measures; or

(b) prohibit the foreign investment where it finds that the risks to security and public order of the Union cannot be adequately addressed through mitigating measures.

The decision referred to in the first subparagraph shall comply with the principle of proportionality, shall be based on documented risks and shall take into consideration all circumstances of the foreign investment.

Amendment 120

Proposal for a regulation

Article 7 – paragraph 9 d (new)

Text proposed by the Commission

Amendment

9d. Decisions adopted pursuant to paragraph 9b shall be addressed to the host Member State. The Commission shall notify the host Member State and shall inform the Member States that provided comments pursuant to paragraph 1.

Decisions adopted pursuant to paragraph 9c shall be addressed to the foreign investor. The Commission shall notify the host Member State and the Member States that provided comments pursuant to paragraph 1 and shall inform the Union target.

Amendment 121

Proposal for a regulation

Article 7 – paragraph 9 e (new)

Text proposed by the Commission

Amendment

9e. Where the Commission adopts a decision pursuant to paragraph 9c, the host Member State shall terminate its screening procedure and inform the foreign investor thereof.

Amendment 122

Proposal for a regulation

Article 7 – paragraph 9 f (new)

Text proposed by the Commission

Amendment

9f. Before adopting a decision pursuant to paragraph 9c, the Commission shall give the foreign investor the opportunity to make its views known effectively.

Amendment 123

Proposal for a regulation

Article 7 – paragraph 9 g (new)

Text proposed by the Commission

Amendment

9g. Where a comment pursuant to paragraph 1 or an opinion pursuant to paragraph 2 or 3 has been issued and the Commission has not issued a decision pursuant to paragraph 9c, the host Member State shall notify its screening decision to the Member States which provided comments, where applicable, and to the Commission, and send it to the respective parties to the foreign investment.

Amendment 124

Proposal for a regulation

Article 7 – paragraph 10

Text proposed by the Commission

Amendment

10. The Commission shall set up a secure database made available to all Member States with information on the foreign investments assessed by the cooperation mechanism and the outcome of the assessments under the national screening mechanisms, including information about the relevant screening decisions. The Commission shall upload to that database the information it has at its disposal since 12 October 2020. By [date of application of this Regulation] Member States shall upload to that database the information at their disposal about the outcome of the relevant procedure under their own screening mechanisms. They may also provide additional explanations.

deleted

Amendment 125

Proposal for a regulation

Article 8 – title

Text proposed by the Commission

Amendment

Deadlines and procedures for providing comments and opinions on notified foreign investments

Deadlines and procedures applicable to the Union cooperation mechanism and decisions

Amendment 126

Proposal for a regulation

Article 8 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) Member States shall inform the notifying Member State via the secure and encrypted system referred to in Article 12(4) that they reserve their right to issue comments no later than 15 calendar days following the receipt of the notification pursuant to Article 5;

(a) Member States shall inform the notifying Member State that they reserve their right to issue comments no later than 15 calendar days following the receipt of the notification pursuant to Article 5;

Amendment 127

Proposal for a regulation

Article 8 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b) the Commission shall inform the notifying Member State via the secure and encrypted system referred to in Article 12(4) that it reserves its right to issue an opinion no later than 20 calendar days following the receipt of the notification pursuant to Article 5.

(b) the Commission shall inform the notifying Member State that it reserves its right to issue an opinion no later than 20 calendar days following the receipt of the notification pursuant to Article 5.

Amendment 128

Proposal for a regulation

Article 8 – paragraph 3 – subparagraph 1 – point a

Text proposed by the Commission

Amendment

(a) where a Member State reserves its right to issue comments on a notified foreign investment without requesting additional information from the notifying Member State, the respective comments shall be addressed to the notifying Member State via the secure and encrypted system referred to in Article 12(4) no later than 35 calendar days following receipt of the complete notification of the foreign investment;

(a) where a Member State reserves its right to issue comments on a notified foreign investment without requesting additional information from the notifying Member State, the respective comments shall be addressed to the notifying Member State no later than 35 calendar days following receipt of the complete notification of the foreign investment;

Amendment 129

Proposal for a regulation

Article 8 – paragraph 3 – subparagraph 1 – point b

Text proposed by the Commission

Amendment

(b) where the Commission reserves its right to issue an opinion on a notified foreign investment without requesting additional information from the notifying Member State, the respective opinion shall be addressed to the notifying Member State via the secure and encrypted system referred to in Article 12(4) no later than 45 calendar days following receipt of the complete notification of the foreign investment;

(b) where the Commission reserves its right to issue an opinion on a notified foreign investment without requesting additional information from the notifying Member State, the respective opinion shall be addressed to the notifying Member State no later than 45 calendar days following receipt of the complete notification of the foreign investment;

Amendment 130

Proposal for a regulation

Article 8 – paragraph 3 – subparagraph 1 – point c

Text proposed by the Commission

Amendment

(c) where a Member State reserves its right to issue comments on a notified foreign investment and requests additional information from the notifying Member State, the respective comments shall be addressed to the notifying Member State via the secure and encrypted system referred to in Article 12(4) no later than 20 calendar days following receipt of the complete additional information;

(c) where a Member State reserves its right to issue comments on a notified foreign investment and requests additional information from the notifying Member State, the respective comments shall be addressed to the notifying Member State no later than 20 calendar days following receipt of the complete additional information;

Amendment 131

Proposal for a regulation

Article 8 – paragraph 3 – subparagraph 1 – point d

Text proposed by the Commission

Amendment

(d) where the Commission reserves its right to issue an opinion and requests additional information from the notifying Member State, the respective opinion shall be issued to the notifying Member State via the secure and encrypted system referred to in Article 12(4) no later than 30 calendar days following receipt of the complete additional information.

(d) where the Commission reserves its right to issue an opinion and requests additional information from the notifying Member State, the respective opinion shall be issued to the notifying Member State no later than 30 calendar days following receipt of the complete additional information.

Amendment 132

Proposal for a regulation

Article 8 – paragraph 3 – subparagraph 2

Text proposed by the Commission

Amendment

The notifying Member State shall take their screening decision only after the deadlines referred to in points (a)-(d) have expired.

deleted

Amendment 133

Proposal for a regulation

Article 8 – paragraph 4

Text proposed by the Commission

Amendment

4. The notifying Member State shall notify the Commission and the other Member States via the secure and encrypted system referred to in Article 12(4) any substantial new information or circumstances relevant for the assessment of a foreign investment already notified pursuant to Article 5. If this information is made available before the deadlines set out in paragraph 3 expire, the notifying Member State, the Commission and the other Member States shall endeavour to agree on a mutually acceptable extension of the deadline. If the deadlines for the assessment of the initial notification set out in paragraph 3 have passed, they shall resume according to the deadlines set out in point (c) and (d) of paragraph 3.

4. The notifying Member State shall notify the Commission and the other Member States any substantial new information or circumstances relevant for the assessment of a foreign investment already notified pursuant to Article 5. If this information is made available before the deadlines set out in paragraph 3 expire, the notifying Member State, the Commission and the other Member States shall agree on a mutually acceptable extension of the deadline. If the deadlines for the assessment of the initial notification set out in paragraph 3 have passed, they shall resume according to the deadlines set out in point (c) and (d) of paragraph 3.

Amendment 134

Proposal for a regulation

Article 8 – paragraph 5

Text proposed by the Commission

Amendment

5. The notifying Member State shall provide the complete additional information requested by the Commission or other Member States pursuant to paragraph 2 without undue delay via the secure and encrypted system referred to in Article 12(4). Where the notifying Member State provides additional information to a Member State, such additional information shall be sent to the Commission simultaneously.

5. The notifying Member State shall provide the complete additional information requested by the Commission or other Member States pursuant to paragraph 2 without undue delay. Where the notifying Member State provides additional information to a Member State, such additional information shall be sent to the Commission simultaneously.

Amendment 135

Proposal for a regulation

Article 8 – paragraph 7 a (new)

Text proposed by the Commission

Amendment

7a. The following deadlines shall apply to the consultations between Member States and the Commission pursuant to Article 7(6) to (9):

(a) the meeting referred to in Article 7(6) shall take place within 20 calendar days following the receipt by the host Member State of the last comment or opinion pursuant to Article 7, whichever comes last;

(b) the host Member State shall transmit its draft decision pursuant to Article 7(8) within 10 calendar days following the meeting referred to in Article 7(6);

(c) the objection by a Member State or the Commission pursuant to Article 7(9) shall be raised within 10 calendar days following the receipt of the draft screening decision pursuant to Article 7(8).

Amendment 136

Proposal for a regulation

Article 8 – paragraph 7 b (new)

Text proposed by the Commission

Amendment

7b. The following deadlines shall apply to the adoption and the notification of screening decisions on notified foreign investments:

(a) the notifying Member State shall adopt its screening decision only after the deadlines referred to in points (a) to (d) of paragraph 3 of this Article have expired;

(b) where neither Member States nor the Commission have reserved the right to issue comments or an opinion, respectively, by the deadlines pursuant to paragraph 1 of this Article, the notifying Member State shall adopt its screening decision within 60 calendar days from the date of notification;

(c) following an objection raised pursuant to Article 7(9), the host Member State and the Member State that raised the objection shall transmit the information referred to in Article 7(9a) within 5 calendar days;

(d) following a Commission decision pursuant to Article 7(9b), the host Member State shall adopt its screening decision within 15 calendar days of the notification referred to in Article 7(9d);

(e) the notification of the screening decision pursuant to Article 7(9f) shall take place within 3 calendar days.

Amendment 137

Proposal for a regulation

Article 8 – paragraph 7 c (new)

Text proposed by the Commission

Amendment

7c. The following deadlines shall apply to the adoption and the notification of a decision by the Commission pursuant to Article 7(9b) and (9c):

(a) the Commission shall adopt its decision within 20 calendar days following receipt of the complete information referred to in Article 7(9a);

(b) the notification pursuant to Article 7(9d) shall take place within 3 calendar days.

The deadlines referred to in paragraph 7a, points (a) and (b), in paragraph 7b, point (b), and paragraph 7c, point (a), of this Article shall be extended by up to 30 calendar days in total, where applicable, to allow the host Member State or, where relevant, the Commission and the foreign investor to agree on mitigating measures. The negotiation of mitigating measures by the Commission and the foreign investor shall be conducted in cooperation with the host Member State.

Amendment 138

Proposal for a regulation

Article 8 – paragraph 8

Text proposed by the Commission

Amendment

8. Where, due to exceptional circumstances, the notifying Member State considers that its security or public order requires issuing a screening decision before the deadlines referred to in paragraph 3 expire, it shall notify the other Member States and the Commission of its intention and duly justify the need for immediate action. The other Member States and the Commission shall provide comments or issue an opinion expeditiously. This procedure shall not be invoked to serve purely the commercial interests of the applicant requesting the authorisation.

8. Where, due to exceptional circumstances, the notifying Member State considers that its security or public order requires issuing a screening decision pursuant to Article 14(1) before the deadlines referred to in paragraph 3 expire, it shall notify the other Member States and the Commission of its intention and duly justify the need for immediate action. The other Member States and the Commission shall provide comments or issue an opinion expeditiously. This procedure shall not be invoked to serve purely the commercial interests of the applicant requesting the authorisation.

Amendment 139

Proposal for a regulation

Article 9 – paragraph 1

Text proposed by the Commission

Amendment

1. A Member State that considers that a foreign investment in the territory of another Member State which has not been notified to the cooperation mechanism is likely to negatively affect its security or public order, it may open an own initiative procedure in relation to that foreign investment. Before opening the procedure, the Member State shall check that the Member State where the investment is planned or completed does not intend to notify the foreign investment to the cooperation mechanism.

1. Where a Member State considers that a foreign investment in the territory of another Member State which has not been notified to the cooperation mechanism is likely to negatively affect its security or public order or where the Commission considers that such a foreign investment is likely to negatively affect the security or public order of more than one Member State or projects or programmes of Union interest on grounds of security and public order, the Member State or the Commission may open an own initiative procedure in relation to that foreign investment. Before opening the procedure, the Member State or the Commission shall check that the host Member State does not intend to notify the foreign investment to the cooperation mechanism.

Amendment 140

Proposal for a regulation

Article 9 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall be granted at least 15 months, after the foreign investment has been completed, the right to open the procedure set out in paragraph 1, provided the respective foreign investment has not been notified to the cooperation mechanism in the meantime.

2. Member States and the Commission shall be granted up to 15 months, after the foreign investment has been completed, the right to open the procedure set out in paragraph 1, provided the respective foreign investment has not been notified to the cooperation mechanism in the meantime.

Amendment 141

Proposal for a regulation

Article 9 – paragraph 3

Text proposed by the Commission

Amendment

3. The Commission may open an own initiative procedure when it considers that a foreign investment in the territory of a Member State which has not been notified to the cooperation mechanism falls under Article 7(2). Before opening the procedure, the Commission shall check that the Member State where the investment is planned or completed does not intend to notify the foreign investment to the cooperation mechanism.

deleted

Amendment 142

Proposal for a regulation

Article 9 – paragraph 4

Text proposed by the Commission

Amendment

4. The Commission shall be granted at least 15 months, after the foreign investment has been completed, to open the procedure set out in paragraph 3, provided the respective foreign investment has not been notified to the cooperation mechanism in the meantime.

deleted

Amendment 143

Proposal for a regulation

Article 9 – paragraph 5

Text proposed by the Commission

Amendment

5. The Member States or the Commission shall open the own initiative procedure set out in paragraph 1 and 3 respectively by sending a duly motivated request for information via the secure and encrypted system referred to in Article 12(4) to the Member State where the foreign investment is planned or has been completed. Any request for information pursuant to this paragraph shall be duly justified, limited to the information necessary for the Member States to provide comments or for the Commission to issue an opinion, proportionate to the purpose of the request and not unduly burdensome for the notifying Member State. Where the request for information is submitted by a Member State, that Member State shall send the request to the Commission simultaneously.

5. The Member States or the Commission shall open the own initiative procedure by sending a duly motivated request for information to the host Member State. Any request for information pursuant to this paragraph shall be duly justified, limited to the information necessary for the Member States to provide comments or for the Commission to issue an opinion, proportionate to the purpose of the request and not unduly burdensome for the host Member State. Where the request for information is submitted by a Member State, that Member State shall send the request to the Commission simultaneously.

Amendment 144

Proposal for a regulation

Article 9 – paragraph 6

Text proposed by the Commission

Amendment

6. The Member State where the investment is planned or completed shall provide the complete information requested by the other Member States or the Commission pursuant to paragraph 5 without undue delay via the secure and encrypted system referred to in Article 12(4). Where the notifying Member State provides additional information to a Member State, such additional information shall be sent to the Commission simultaneously.

6. The host Member State shall provide the complete information requested by the other Member States or the Commission pursuant to paragraph 5 without undue delay. Where the host Member State provides such information to a Member State, that information shall be sent to the Commission simultaneously.

Amendment 145

Proposal for a regulation

Article 9 – paragraph 7 – introductory part

Text proposed by the Commission

Amendment

7. Following receipt of information referred to in paragraph 6, Member States may provide comments and the Commission may provide an opinion to the Member State where the foreign investment is planned or has been completed. The rules and procedures laid down in Article 7 and 8 shall apply mutatis mutandis, subject to the following modifications:

7. Following receipt of information referred to in paragraph 6, Member States may provide comments and the Commission may provide an opinion to the host Member State, no later than 30 calendar days after receiving the complete information requested pursuant to paragraph 5. In cases where the procedure was initiated by a Member State, the Commission shall be granted an additional 15 calendar days to issue its opinion. The host Member State shall give the utmost consideration to such a comment or opinion.

Amendment 146

Proposal for a regulation

Article 9 – paragraph 7 – point a

Text proposed by the Commission

Amendment

(a) the comments by Member States or the opinion by the Commission shall be sent no later than 35 calendar days following receipt of the complete information requested pursuant to paragraph 5.

deleted

Amendment 147

Proposal for a regulation

Article 9 – paragraph 7 – point b

Text proposed by the Commission

Amendment

(b) for procedures initiated pursuant to paragraph 1, the Commission shall have 15 additional calendar days to issue an opinion after the deadline for the Member State set out in point (a) of this paragraph have expired.

deleted

Amendment 148

Proposal for a regulation

Article 9 – paragraph 7 a (new)

Text proposed by the Commission

Amendment

7a. Following the receipt of a comment or opinion pursuant to paragraph 7, the host Member State shall set up a meeting with the Member States that issued comments, where applicable, and the Commission to discuss how to effectively address the risks identified. If the host Member State disagrees with the risks identified or, where applicable, the measures proposed with the comment or opinion, the Member States and the Commission shall aim to identify alternative solutions and agree on a suitable course of action to manage the risks in question.

Amendment 149

Proposal for a regulation

Article 9 – paragraph 7 b (new)

Text proposed by the Commission

Amendment

7b. Following the meeting referred to in paragraph 7a, the host Member State shall inform the Commission and, where applicable, the Member States having provided comments, whether it intends to screen the investment.

Amendment 150

Proposal for a regulation

Article 9 – paragraph 7 c (new)

Text proposed by the Commission

Amendment

7c. Where the host Member State decides not to screen the foreign investment, it shall provide a written explanation to the Member States concerned and the Commission on the reasons for its disagreement with the comments of those Member States or the opinion of the Commission.

Amendment 151

Proposal for a regulation

Article 9 a (new)

Text proposed by the Commission

Amendment

Article 9a

Investigative Powers of the Commission

1. Upon a duly justified request by a Member State or on its own initiative when there are reasonable grounds to suspect that a foreign investment may affect the security or public order of more than one Member State, and provided the host Member State has been notified, the Commission may request information in accordance with this Article.

2. The Commission may require the parties involved in a foreign investment to provide any information deemed necessary to assess whether the foreign investment is likely to negatively affect security or public order. It may request information from any other entity or person likely to possess relevant information for assessing whether a foreign investment is likely to negatively affect security or public order, including suppliers, contractors, customers and experts.

3. The Commission shall inform a Member State before seeking such information on its territory.

4. A request for information pursuant to paragraph 2 shall:

(a) state its legal basis and purpose, specify the required information, and set an appropriate time-limit for its provision;

(b) be duly justified and limited to the information strictly necessary for assessing the potential impact of a transaction on security or public order;

(c) include a statement that, if the information supplied is incorrect, incomplete or misleading, the periodic penalty payments provided for in paragraph 6 could be imposed;

(d) include a statement that a lack of cooperation may allow the Commission to take a decision based on the facts available to it.

5. The deadlines referred to in Article 8(7a), points (a) to (c), Article 8(7b), point (b), and Article 8(7c), point (a), may be suspended for the time required by the Commission to obtain the requested information. The suspension shall take effect from the date of the Commission’s request for information and shall remain in effect until the requested information has been fully received. The suspension shall not last longer than 30 calendar days. The Commission shall promptly notify the relevant Member States of both the suspension and of its lifting.

6. In the event of an unjustified lack of compliance with the Commission’s information requests, the Commission may impose, by decision:

(a) fines not exceeding 1 % of the aggregate turnover of the party or entity concerned in the preceding financial year; or

(b) periodic penalty payments, where incomplete, incorrect or misleading information is provided, or the requested information is not supplied within the specified deadline. Such periodic penalty payments shall not exceed 5 % of the average daily aggregate turnover of the party or entity concerned in the preceding financial year for each working day of delay, calculated from the date established in the decision, until compliance is achieved.

7. Before imposing periodic penalty payments, the party or entity concerned shall be given the opportunity to be heard. When determining the amount of the fine or periodic penalty payment, the Commission shall take into account the nature, gravity and duration of the failure to comply, in accordance with the principles of proportionality and appropriateness.

8. When determining the amount of the fine or periodic penalty payment, the Commission shall take into account the nature, gravity and duration of the failure to comply, in accordance with the principles of proportionality and appropriateness.

Amendment 152

Proposal for a regulation

Article 10 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1. Member States shall ensure that information provided in the notification referred to in Article 5 and to the request of information referred to in 9(5) include:

1. Member States shall provide, at a minimum, the following information in the notification referred to in Article 5 and in response to the request of information referred to in 9(5):

Amendment 153

Proposal for a regulation

Article 10 – paragraph 1 – point e

Text proposed by the Commission

Amendment

(e) activities of the foreign investor, its name and address; and

(e) activities of the foreign investor, its name and address;

Amendment 154

Proposal for a regulation

Article 10 – paragraph 1 – point e a (new)

Text proposed by the Commission

Amendment

(ea) where applicable, the reasons justifying the notification, including whether any of the conditions for the notification of a foreign investment referred to in points (i) to (iii) of Article 5(1), point (b), are fulfilled;

Amendment 155

Proposal for a regulation

Article 10 – paragraph 1 – point e b (new)

Text proposed by the Commission

Amendment

(eb) whether the Union target is a recipient of funds as defined in Article 2 paragraph 59 of Regulation (EU) 2024/2509, or of any fund or financial instrument established or managed by the Union; and

Amendment 156

Proposal for a regulation

Article 10 – paragraph 3

Text proposed by the Commission

Amendment

3. Where the Commission or Member States request additional information pursuant to Article 8(1) or Article 9(5) from the Member State where the foreign investment is planned or has been completed, that Member State shall endeavour to provide such information, if available, to the requesting Member States and the Commission.

deleted

Amendment 157

Proposal for a regulation

Article 10 – paragraph 4

Text proposed by the Commission

Amendment

4. Where necessary, the Member State where the foreign investment is planned or has been completed may request the applicant requesting an authorisation or any other relevant undertaking to provide the information referred to in paragraphs 1 and 3. The request for information may concern information necessary for the Member State to determine if any of the conditions set out in Article 5(1) are met. The undertaking concerned shall provide the requested information to the Member State where the foreign investment is planned or has been completed within 15 calendar days of the request.

4. Where necessary, the host Member State may request the applicant requesting an authorisation or any other relevant undertaking to provide, inter alia, the information referred to in paragraph 1 of this Article and Article 8(2). The request for information may concern information necessary for the Member State to determine if any of the conditions set out in Article 5(1) are met. The undertaking concerned shall provide the requested information to the Member State where the foreign investment is planned or has been completed within 15 calendar days of the request.

Amendment 158

Proposal for a regulation

Article 10 – paragraph 5

Text proposed by the Commission

Amendment

5. The Member State where the foreign investment is planned or completed and the Commission may request other Member States to seek information from undertakings in their territory, provided this information is relevant and strictly necessary for assessing a foreign investment pursuant to Article 13. The Member State receiving the request to seek information shall, without delay, request the undertaking to provide that information and shall notify it to the Member State where the foreign investment is planned or completed and the Commission, in accordance with the procedure set out in Articles 8(2) and 9(6) as applicable.

5. The host Member State and the Commission may request other Member States to seek information from undertakings in their territory, provided this information is relevant and strictly necessary for assessing a foreign investment pursuant to Article 13. The Member State receiving the request to seek information shall, without delay, request the undertaking to provide that information and shall notify it to the host Member State and the Commission, in accordance with the procedure set out in Article 8(5) and Article 9(6) as applicable.

Amendment 159

Proposal for a regulation

Article 10 – paragraph 6

Text proposed by the Commission

Amendment

6. A Member State shall notify the Commission and the other Member States concerned if, in exceptional circumstances, it is unable, despite its best efforts, to provide the information referred to in paragraphs 3, 4 or 5. That Member State shall duly explain the reasons for not being able to provide the information.

6. A Member State shall notify the Commission and the other Member States concerned if, in exceptional circumstances, it is unable, despite its best efforts, to provide the information referred to in paragraphs 4 or 5 of this Article, Article 8(2) or Article 9(5). That Member State shall duly explain the reasons for not being able to provide the information.

Amendment 160

Proposal for a regulation

Article 11 – paragraph 1

Text proposed by the Commission

Amendment

1. Member States shall provide the necessary resources, legal and administrative means for their efficient and effective participation in the cooperation mechanism.

1. Member States shall provide the necessary resources, legal and administrative means to carry out, in an effective and efficient manner, the tasks assigned to them to fulfil the objectives of this Regulation, including their efficient and effective participation in the cooperation mechanism.

Amendment 161

Proposal for a regulation

Article 11 – paragraph 4

Text proposed by the Commission

Amendment

4. Member States shall ensure that their screening mechanisms give sufficient time and means to assess and give utmost consideration to other Member States’ comments and Commission opinions before a screening decision is taken. This includes having all necessary legal means and powers to consider concerns expressed or likely impacts identified by another Member State or the Commission in its screening decision or in any other relevant instrument at its disposal. Where a foreign investment is notified to the Commission and other Member States pursuant to Article 5, the screening mechanisms shall not allow Member States to take their screening decision until the deadlines for comments by the Member States and Commission opinions set out in Article 8(3) expire.

4. Member States’ screening mechanisms shall give sufficient means to assess and give utmost consideration to other Member States’ comments and Commission opinions before a screening decision is taken. This includes having all necessary legal means and powers to consider concerns expressed or likely impacts identified by another Member State or the Commission in its screening decision or in any other relevant instrument at its disposal.

Amendment 162

Proposal for a regulation

Article 11 – paragraph 5

Text proposed by the Commission

Amendment

5. Member States shall ensure that their national laws allow compliance with the obligations set out in paragraphs 5 to 9 of Article 7.

5. Member States shall ensure that their national laws allow compliance with the obligations set out in Article 7.

Amendment 163

Proposal for a regulation

Article 11 – paragraph 7

Text proposed by the Commission

Amendment

7. Where mitigating measures in a screening decision require compliance by undertakings established in other Member States, the Member States that adopted a screening decision shall cooperate with the other Member State or Member States concerned on the monitoring and enforcement of screening decision. Member States shall ensure that they have all necessary legal means and powers to address effectively the consequences of non-compliance with the mitigating measures provided in a screening decision.

7. Where mitigating measures in a screening decision require compliance by undertakings established in more than one Member State, the Member States concerned shall cooperate with each other on the monitoring and enforcement of the screening decision. Member States shall ensure that they have all necessary legal means and powers to address effectively the consequences of non-compliance with the mitigating measures provided in a screening decision of another Member State or of the Commission.

Amendment 164

Proposal for a regulation

Article 11 – paragraph 7 a (new)

Text proposed by the Commission

Amendment

7a. Where, following the adoption of a screening decision, a host Member State imposes penalties in accordance with Article 4(2), point (ha), it shall notify the Commission and the Member States that provided comments on the transaction within a reasonable timeframe.

Amendment 165

Proposal for a regulation

Article 12 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1. Information received in accordance with the procedures set out in Articles 5, 7 and 9 shall be used only for the purpose for which it was requested, unless:

1. Information received in accordance with the procedures set out in Articles 5, 7, 9 and 9a shall be used only for the purpose for which it was requested, unless:

Amendment 166

Proposal for a regulation

Article 12 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b) the Court of Justice of the European Union or a court of the Member State where the foreign investment is planned or completed requests such information for the purpose of legal proceedings.

(b) the Court of Justice of the European Union or a court of the host Member State requests such information for the purpose of legal proceedings.

Amendment 167

Proposal for a regulation

Article 12 – paragraph 4

Text proposed by the Commission

Amendment

4. The Commission shall provide a secure and encrypted system to support the exchange of information between the contact points.

deleted

Amendment 168

Proposal for a regulation

Article 12 a (new)

Text proposed by the Commission

Amendment

Article 12a

Secure and encrypted system and single portal

1. The Commission shall establish and maintain a secure and encrypted system to facilitate the exchange of information between the contact points. All communications between Member States, as well as between Member States and the Commission under this Regulation, including notifications pursuant to Article 5 and comments and opinions pursuant to Article 7, shall be transmitted exclusively through that secure and encrypted system.

2. As part of the secure and encrypted system, the Commission shall establish an online single portal for the electronic filing of foreign investments with screening authorities. That single portal shall be operational no later than ... [six months before the date of application of this Regulation]. It shall serve as the entry point for the screening of foreign investments. Member States shall use the single portal to receive filings and for other communications with applicants.

3. Applicants and their legal representatives shall submit filings through an online form available on the single portal established pursuant to paragraph 2 of this Article. The form shall include the information required under Article 10(1).

4. When submitting a filing, applicants shall select the Member States to which the filing is to be transmitted. Subsequent communications between the recipient Member State and the applicants shall be conducted through the single portal until the request for authorisation is finalised.

5. All information transmitted through the single portal shall be made available only to the designated recipient.

6. By ... [six months before the date of application of this Regulation], the Commission shall, by means of implementing acts pursuant to Article 21, adopt measures setting out the modalities for the functioning of the single portal and the secure and encrypted system provided for in this Article.

7. As part of the secure and encrypted system, the Commission shall set up a secure database, to be made available to all Member States, with information exchanged on the foreign investments assessed by the cooperation mechanism, including the parties involved, the comments and opinions issued and the outcome of the assessments under the national screening mechanisms, including information about the relevant screening decisions. The Commission shall set up that secure database no later than ... [six months from the date of entry into force of this Regulation] and upload to that database the information it has at its disposal since 12 October 2020. By … [the date of application of this Regulation] Member States shall upload to that database the information at their disposal about the outcome of the relevant procedure under their own screening mechanisms. The Member States and the Commission may also provide additional information or explanations, including relevant business intelligence they have procured and verified from commercial vendors.

Amendment 169

Proposal for a regulation

Article 12 b (new)

Text proposed by the Commission

Amendment

Article 12b

Business intelligence capability

The Commission shall develop a business intelligence capability to support the Member States’ screening authorities in identifying potential risks to security and public order related to foreign investments, develop coordinated risk assessments and, in consultation with the Commission expert group on the screening of foreign investments, support a Union FDI capacity-building programme to identify and promote best practices and lessons learned, and offer common training programmes for officials of the Member States.

Amendment 170

Proposal for a regulation

Article 13 – paragraph 2

Text proposed by the Commission

Amendment

2. The Commission shall determine, for the purpose of issuing a duly motivated opinion pursuant to Article 7(2) or (3) or Article 9(7), whether it considers a foreign investment to be likely to negatively affect security or public order.

2. The Commission shall determine, for the purpose of issuing a duly motivated opinion pursuant to Article 7(2) or (3) or Article 9(7), or a decision pursuant to Article 7(9b) or (9c), whether it considers a foreign investment to be likely to negatively affect security or public order.

Amendment 171

Proposal for a regulation

Article 13 – paragraph 3 – introductory part

Text proposed by the Commission

Amendment

3. When determining whether an investment is likely to negatively affect security or public order, the Member States or the Commission shall in particular consider whether the investment concerned is likely to negatively affect:

3. When determining whether a foreign investment is likely to negatively affect security or public order, the Member States or the Commission shall in particular consider whether the investment concerned is likely to negatively affect:

Amendment 172

Proposal for a regulation

Article 13 – paragraph 3 – point a

Text proposed by the Commission

Amendment

(a) the security, integrity and functioning of critical infrastructure, whether physical or virtual; in that context, based on the information available, it shall also be assessed whether the foreign investment is likely to negatively affect the resilience of any of the critical entities they have identified under Directive (EU) 2022/2557 of the European Parliament and of the Council20 as well as entities in scope of Directive (EU) 2022/2555 of the European Parliament and of the Council21 . The results of the Union level coordinated security risk assessments of critical supply chains carried out in accordance with Article 22(1) of Directive (EU) 2022/2555 shall also be taken into account. ;

(a) the security, integrity, functioning and resilience of critical infrastructure, including the land and property critical to the use of such critical infrastructure, whether physical or virtual; in that context, based on the information available, it shall also be assessed whether the foreign investment is likely to negatively affect the resilience of any of the critical entities they have identified under Directive (EU) 2022/2557 of the European Parliament and of the Council20 as well as entities in scope of Directive (EU) 2022/2555 of the European Parliament and of the Council21 . The results of the Union level coordinated security risk assessments, including those concerning critical supply chains carried out in accordance with Article 22(1) of Directive (EU) 2022/2555 shall be taken into account, covering both technical and non-technical risk factors;

__________________

20 Directive (EU) 2022/2557 of the European Parliament and of the Council of 14 December 2022 on the resilience of critical entities and repealing Council Directive 2008/114/EC (OJ L 333, 27.12.2022, p. 164–198, ELI: http://data.europa.eu/eli/dir/2022/2557/oj).

21 Directive (EU) 2022/2555 of the European Parliament and of the Council of 14 December 2022 on measures for a high common level of cybersecurity across the Union, amending Regulation (EU) No 910/2014 and Directive (EU) 2018/1972, and repealing Directive (EU) 2016/1148 (OJ L 333, 27.12.2022, p. 80–152, ELI: http://data.europa.eu/eli/dir/2022/2555/oj).

Amendment 173

Proposal for a regulation

Article 13 – paragraph 3 – point a a (new)

Text proposed by the Commission

Amendment

(aa) the security of military facilities and other sensitive public facilities in the immediate geographical proximity of the Union target;

Amendment 174

Proposal for a regulation

Article 13 – paragraph 3 – point a b (new)

Text proposed by the Commission

Amendment

(ab) the security, integrity, functioning, operational stability and resilience of the internal market;

Amendment 175

Proposal for a regulation

Article 13 – paragraph 3 – point b

Text proposed by the Commission

Amendment

(b) the availability of critical technologies;

(b) the availability and uptake of critical technologies, technology security and technology leakage;

Amendment 176

Proposal for a regulation

Article 13 – paragraph 3 – point c

Text proposed by the Commission

Amendment

(c) the continuity of supply of critical inputs;

(c) the security and resilience of supply chains for critical inputs;

Amendment 177

Proposal for a regulation

Article 13 – paragraph 3 – point c a (new)

Text proposed by the Commission

Amendment

(ca) food security;

Amendment 178

Proposal for a regulation

Article 13 – paragraph 3 – point c b (new)

Text proposed by the Commission

Amendment

(cb) the capacity to avoid and address strategic dependencies;

Amendment 179

Proposal for a regulation

Article 13 – paragraph 3 – point c c (new)

Text proposed by the Commission

Amendment

(cc) the protection of the financial and economic stability of the Union;

Amendment 180

Proposal for a regulation

Article 13 – paragraph 3 – point c d (new)

Text proposed by the Commission

Amendment

(cd) the provision of essential services and services of general interest;

Amendment 181

Proposal for a regulation

Article 13 – paragraph 3 – point d

Text proposed by the Commission

Amendment

(d) the protection of sensitive information, including personal data, in particular with regard to the ability of the foreign investor to access, control, and otherwise process such personal data, or

(d) the protection of sensitive information, including personal data as defined in Article 4, point (1), of Regulation (EU) 2016/6791a, in particular with regard to the ability of the foreign investor to access, control, and otherwise process such information;

__________________

1a Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1–88, ELI: http://data.europa.eu/eli/reg/2016/679/oj).

Amendment 182

Proposal for a regulation

Article 13 – paragraph 3 – point d a (new)

Text proposed by the Commission

Amendment

(da) the protection of intellectual property, knowledge or other intangible assets;

Amendment 183

Proposal for a regulation

Article 13 – paragraph 3 – point e

Text proposed by the Commission

Amendment

(e) the freedom and pluralism of the media, including online platforms that can be used for large scale disinformation or criminal activities.

(e) the freedom and pluralism of the media, including online and social media platforms that can be used for large scale disinformation or criminal activities, fundamental rights, civic discourse and electoral processes, as well as the neutrality, objectivity and pluralism of education; or

Amendment 184

Proposal for a regulation

Article 13 – paragraph 3 – point e a (new)

Text proposed by the Commission

Amendment

(ea) the likelihood of economic coercion by a third country falling within the scope of Article 2 of Regulation (EU) 2023/26751a.

__________________

1a Regulation (EU) 2023/2675 of the European Parliament and of the Council of 22 November 2023 on the protection of the Union and its Member States from economic coercion by third countries (OJ L, 2023/2675, 7.12.2023, ELI: http://data.europa.eu/eli/reg/2023/2675/oj).

Amendment 185

Proposal for a regulation

Article 13 – paragraph 4 – point -a (new)

Text proposed by the Commission

Amendment

(-a) whether the foreign investor or the foreign investor’s subsidiary in the Union is directly or indirectly controlled by the government, including state bodies, regional or local authorities or armed forces, of a third country, including through ownership structure, significant funding, special rights or state-appointed directors or managers, or other features aimed at influencing management decisions, such as golden shares;

Amendment 186

Proposal for a regulation

Article 13 – paragraph 4 – point a

Text proposed by the Commission

Amendment

(a) whether the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of the foreign investor was involved in a foreign investment previously screened by a Member State and that was not authorised or was only authorised with conditions; to determine this, Member States and the Commission shall rely on information available to them, including the information contained in the secure database set up pursuant to Article 7(10);

(a) whether the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of the foreign investor was involved in a foreign investment previously screened by a Member State or, where available, by a third country with an established foreign direct investment screening mechanism, with which the Union cooperates in investment screening matters and that was not authorised or was only authorised with conditions; to determine this, Member States and the Commission shall rely on information available to them, including the information contained in the secure database set up pursuant to Article 12a (6a);

Amendment 187

Proposal for a regulation

Article 13 – paragraph 4 – point d

Text proposed by the Commission

Amendment

(d) whether the foreign investor or any of its subsidiaries has engaged in illegal or criminal activities, including the circumvention of Union restrictive measures pursuant to Article 215 TFEU;

(d) whether the foreign investor or any of its subsidiaries has engaged in illegal or criminal activities, including money laundering and the circumvention of Union restrictive measures pursuant to Article 215 TFEU;

Amendment 188

Proposal for a regulation

Article 13 – paragraph 4 – point e

Text proposed by the Commission

Amendment

(e) whether the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of the foreign investor is likely to pursue a third country’s policy objectives, or facilitate the development of a third country’s military capabilities.

(e) whether the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of the foreign investor is likely to pursue a third country’s policy objectives, support risks of violations of international law by a third country, or facilitate the development of a third country’s military capabilities;

Amendment 189

Proposal for a regulation

Article 13 – paragraph 4 – point e a (new)

Text proposed by the Commission

Amendment

(ea) whether the foreign investor is established in a third country subject to Union restrictive measures pursuant to Article 215 TFEU, in a jurisdiction identified as a third country with significant strategic deficiencies in its national AML/CFT regime in accordance with Article 29 of Regulation (EU) 2024/1624 of the European Parliament and of the Council, or in a country pursuing an aggressive civil-military fusion strategy;

Amendment 190

Proposal for a regulation

Article 13 – paragraph 4 – point e b (new)

Text proposed by the Commission

Amendment

(eb) whether the foreign investor or any of its subsidiaries is established in a third country whose legislation permits arbitrary access to company operations or data, including commercially sensitive information, and imposes obligations on companies to share information for intelligence purposes without democratic checks and balances, oversight mechanisms, due process, or the right to appeal to an independent court or tribunal.

Amendment 191

Proposal for a regulation

Article 13 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

4a. The Commission shall make available a risk evaluation form that may be used by Member States to assess the elements referred to in paragraphs 3 and 4.

Amendment 192

Proposal for a regulation

Article 13 – paragraph 4 b (new)

Text proposed by the Commission

Amendment

4b. The Commission may carry out a risk assessment relating to a specific sector, critical technology, foreign investors or Union undertakings to inform screening decisions of the Member States. That risk assessment shall be made available in the secure database set up pursuant to Article 12a(6a) and shall be taken into account by Member States when determining whether an investment is likely to negatively affect security or public order.

Amendment 193

Proposal for a regulation

Article 14 – title

Text proposed by the Commission

Amendment

Screening decisions on foreign investments likely to negatively affect security or public order

Screening decisions on foreign investments

Amendment 194

Proposal for a regulation

Article 14 – paragraph 1 – subparagraph 1 – introductory part

Text proposed by the Commission

Amendment

Where, taking into account the criteria laid down in Article 13 and, where applicable, in the light of comments provided by other Member States pursuant to Article 7(1) or Article 9(7), or an opinion provided by the Commission pursuant to Article 7(2) or (3) or Article 9(7), the Member State in which the foreign investment is planned or completed concludes that the foreign investment is likely to negatively affect security or public order in one or more Member States, including where a project or programme of Union interest is concerned, it shall issue a screening decision to:

Where, taking into account the criteria laid down in Article 13 and, where applicable, in the light of comments provided by other Member States pursuant to Article 7(1) or Article 9(7), or an opinion provided by the Commission pursuant to Article 7(2) or (3) or Article 9(7), and without prejudice to the Commission’s power to adopt a decision pursuant to Article 7(9c), the host Member State concludes that the foreign investment is likely to negatively affect security or public order in one or more Member States, including where a project or programme of Union interest is concerned, it shall issue a screening decision to:

Amendment 195

Proposal for a regulation

Article 14 – paragraph 1 – subparagraph 2

Text proposed by the Commission

Amendment

The screening decision shall comply with the principle of proportionality and take into consideration all circumstances of the foreign investment.

The screening decision shall comply with the principle of proportionality, be based on documented risks and take into consideration all circumstances of the foreign investment.

Amendment 196

Proposal for a regulation

Article 14 – paragraph 2

Text proposed by the Commission

Amendment

2. Where the Member State where the foreign investment is planned or completed considers that other measures pursuant to Union or national law are available and appropriate to address the foreign investment’s effect on security and public order, the foreign investment shall be authorised without conditions.

2. Where the host Member State concludes that the foreign investment is not likely to negatively affect security or public order or considers that other measures pursuant to Union or national law are available and appropriate to effectively address the foreign investment’s effect on security and public order, and except in cases where the Commission has taken a decision pursuant to Article 7(9c), the foreign investment shall be authorised without conditions.

Amendment 197

Proposal for a regulation

Article 14 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

2a. The mitigating measures referred to in paragraph 1, point (a), shall be sufficient to address the foreign investment’s effect on security and public order and shall comply with the principle of proportionality. Those measures may include:

(a) changes to the proposed governance structure of the target;

(b) modifications to the voting rights conferred on the investor;

(c) prevention of unauthorised access to sensitive technologies or information;

(d) commitments by the investor to ensure a specific supply and/or supply to a specific client;

(e) commitments by the investor to maintain or create local added value;

(f) commitments by the investor to address the risk of dependency, including the transfer of technologies and know-how;

(g) measures to ensure the continuation of business activities;

(h) requirements to source critical components from secure and reliable suppliers;

(i) implementation of cybersecurity protocols to protect against potential threats;

(j) the requirement for the foreign investor to establish a joint venture with a Union undertaking;

(k) an obligation to store and process specific data within the Union.

Amendment 198

Proposal for a regulation

Article 14 a (new)

Text proposed by the Commission

Amendment

Article 14a

Group of experts on the screening of foreign direct investment into the Union

1. The group of experts on the screening of foreign direct investments into the Union, which provides advice and expertise to the Commission, shall continue to engage in discussions regarding foreign direct investment screening. It shall share best practices, lessons learnt, and exchange views on emerging trends and issues of common concern related to foreign direct investments. The Commission shall also seek the advice of that group on systemic matters concerning the implementation of this Regulation. That group shall meet on a regular basis to ensure ongoing dialogue and mutual learning.

2. The discussions in that group shall be kept confidential.

Amendment 199

Proposal for a regulation

Article 14 b (new)

Text proposed by the Commission

Amendment

Article 14b

Public transparency requirements

1. By ... [the date of entry into force of this Regulation] the Commission shall publish guidelines regarding the application of:

(a) the criteria for determining whether an investment enables effective participation in the management or control of a Union target pursuant to Article 2, point (1);

(b) the criteria for determining whether an undertaking is part of or participates in a project or programme of Union interest pursuant to Article 4(4), point (a);

(c) the criteria for determining whether an undertaking is economically active in one of the areas listed in Annex II pursuant to Article 2, point (9);

(d) the criteria for assessing potential risks to security and public order, including cross-border risks and those posed by greenfield investments, as set out in Article 13.

Before issuing the guidelines referred to in the first subparagraph, the Commission shall conduct appropriate consultations with stakeholders. The Commission shall regularly update those guidelines in light of the experience gained in implementing this Regulation.

2. The Commission shall publish a list of all screening mechanisms established by the Member States. That list shall contain summary information on the respective scope and on the relevant procedural rules of each screening mechanism. It shall also contain a link to the screening authorities’ guidance referred to in paragraph 3 and the contact details of the contact point concerned. The Commission shall keep that list up to date.

3. In order to enhance transparency and predictability, Member States shall publish and regularly update detailed guidance on the scope of their screening mechanism, the thresholds and triggers for notification obligations, the criteria used to assess whether an investment is likely to negatively affect security or public order, the criteria for opening an in-depth investigation, and the applicable timelines and procedural rules.

Amendment 200

Proposal for a regulation

Article 15 – paragraph 1

Text proposed by the Commission

Amendment

Member States and the Commission may cooperate with the responsible authorities of third countries on issues relating to the screening of investments on grounds of security and public order.

Member States and the Commission may cooperate with the responsible authorities of third countries and engage through bilateral and multilateral platforms on issues relating to the screening of investments on grounds of security and public order. That cooperation may involve the exchange of information and best practices, as well as technical and capacity-building support. In the context of that cooperation, the Commission shall encourage the establishment of investment screening mechanisms by third countries, particularly those that are candidates for accession to the Union and countries in the Union’s neighbourhood.

Amendment 201

Proposal for a regulation

Article 16 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1. By 31 March of each year beginning in [add date: first year of application], Member States shall report to the Commission, on a confidential basis, on their activities under their screening mechanism and under the cooperation mechanism for the preceding calendar year. This report shall contain information on:

1. By 31 March of each year beginning in [add date: first year of application], Member States shall report to the Commission, on a confidential basis, on their activities under their screening mechanism and under the cooperation mechanism for the preceding calendar year. This report shall contain:

Amendment 202

Proposal for a regulation

Article 16 – paragraph 1 – point c

Text proposed by the Commission

Amendment

(c) the number of foreign investments prohibited, the number of foreign investments withdrawn;

(c) the number of foreign investments prohibited, the number of foreign investments withdrawn or unwound;

Amendment 203

Proposal for a regulation

Article 16 – paragraph 1 – point e

Text proposed by the Commission

Amendment

(e) information on the origin of the foreign investors and the sector of activity of the targets of the foreign investments screened, authorised or prohibited;

(e) information on the origin of the foreign investors and the sector of activity of the targets of the foreign investments screened, authorised without conditions, authorised with conditions, and foreign investments prohibited, respectively;

Amendment 204

Proposal for a regulation

Article 16 – paragraph 1 – point e a (new)

Text proposed by the Commission

Amendment

(ea) the average duration of investment screening procedures;

Amendment 205

Proposal for a regulation

Article 16 – paragraph 1 – point f

Text proposed by the Commission

Amendment

(f) an aggregate presentation of risks and vulnerabilities identified in the foreign investments that led to a screening decision;

(f) a description of the risks and vulnerabilities identified in the foreign investments that led to a screening decision;

Amendment 206

Proposal for a regulation

Article 16 – paragraph 1 – point f a (new)

Text proposed by the Commission

Amendment

(fa) the number of own initiative procedures opened pursuant to Article 9(1) and the number of instances where they resulted in the initiation of a screening procedure by the host Member State.

Amendment 207

Proposal for a regulation

Article 16 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

1a. By ... [1 January of the first year of application], the Commission shall adopt an implementing act pursuant to Article 21 setting out the form to be used for reporting the information referred to in paragraph 1 of this Article.

Amendment 208

Proposal for a regulation

Article 16 – paragraph 2

Text proposed by the Commission

Amendment

2. On the basis of the information received in accordance with paragraph 1, and based on its assessment of trends and developments, the Commission shall provide an annual report on implementation of this Regulation to the European Parliament and to the Council. That report shall be made public.

2. Based on the information received in accordance with paragraph 1, its implementation practice, and its assessment of trends and developments, the Commission shall provide an annual report on implementation of this Regulation to the European Parliament and to the Council by 30 September of each year beginning in ... [the first year of application of this Regulation]. That report shall be made public.

Amendment 209

Proposal for a regulation

Article 16 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

2a. The Commission’s annual report shall include an overview of the information referred to in paragraph 1 for each Member State, an assessment of the trends and figures on foreign investments into the Union, relevant legislative developments across Member States, international cooperation efforts, lessons learnt, and best practices to support the implementation of this Regulation.

Amendment 210

Proposal for a regulation

Article 18 – paragraph 1

Text proposed by the Commission

Amendment

1. The Commission shall evaluate the functioning and effectiveness of this Regulation 5 years after the date of application of this Regulation and every 5 years thereafter and present a report to the European Parliament and to the Council. Member States shall be involved in this exercise and, if necessary, provide the Commission with additional information for the preparation of that report.

1. The Commission shall evaluate the functioning and effectiveness of this Regulation 3 years after the date of application of this Regulation and every 5 years thereafter and present a report to the European Parliament and to the Council. Member States shall be involved in this evaluation process and, if necessary, provide the Commission with additional information for the preparation of that report. That report shall include an analysis of the evolution of foreign investments into the Union as well as an assessment of the contribution of this Regulation to the economic security of the Union. It should include an assessment of whether the conditions set out in Article 4(4) and (4a) should be amended in order to ensure a consistent approach to the screening of foreign investments, taking into consideration the criteria set out in Article 13(3) and (4), including the security of military facilities and other sensitive public facilities. The report shall also assess the compliance costs faced by businesses.

Amendment 211

Proposal for a regulation

Article 19 – paragraph 2 – introductory part

Text proposed by the Commission

Amendment

2. The Commission is empowered to adopt delegated acts in accordance with Article 20 for the purposes of amending, where necessary, the list technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union set out in Annex II to take account of changes in the circumstances relevant to the security or public order interests of the Union. In particular, these considerations shall include the following:

2. The Commission is empowered to adopt delegated acts in accordance with Article 20 for the purposes of amending, where necessary, the list of technologies, materials, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union set out in Annex II to take account of changes in the circumstances relevant to the security or public order interests of the Union. In particular, these considerations shall include the following:

Amendment 212

Proposal for a regulation

Article 19 – paragraph 2 – point b a (new)

Text proposed by the Commission

Amendment

(ba) the results of relevant risk assessments undertaken by the Commission and Member States under the Union Economic Security Strategy;

Amendment 213

Proposal for a regulation

Article 19 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

2a. The first of the delegated acts referred to in paragraph 2 of this Article shall be adopted by ... [9 months from the date of entry into force of this Regulation] for the purpose of amending Annex II to further specify the list of technologies, materials, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union.

Amendment 214

Proposal for a regulation

Article 20 – paragraph 2

Text proposed by the Commission

Amendment

2. The power to adopt delegated acts shall be conferred on the Commission for an indeterminate period of time from [date of entry into force of the basic legislative act].

2. The power to adopt delegated acts referred to in Article 19 shall be conferred on the Commission for a period of five years from ... [the date of entry into force of this Regulation]. The Commission shall draw up a report in respect of the delegation of power no later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or Council opposes such extension no later than three months before the end of each period.

Amendment 215

Proposal for a regulation

Article 21 – paragraph 1

Text proposed by the Commission

Amendment

1. The Commission is empowered to adopt implementing acts setting out the forms to be used to provide the information indicated in Article 10(1).

deleted

Amendment 216

Proposal for a regulation

Article 21 – paragraph 2

Text proposed by the Commission

Amendment

2. Implementing acts referred to in paragraph 1 shall be adopted in accordance with the advisory procedure referred to in Article 22(2).

2. Implementing acts referred to in Article 10(2), Article 12a(3), Article 12a(6) and Article 16(1a) shall be adopted in accordance with the advisory procedure referred to in Article 22(2).

Amendment 217

Proposal for a regulation

Article 23 – paragraph 1

Text proposed by the Commission

Amendment

Regulation (EU) 2019/452 is repealed with effect from [date: 15 months after entry into force].

Regulation (EU) 2019/452 is repealed with effect from ... [12 months from the date of entry into force of this Regulation].

Amendment 218

Proposal for a regulation

Article 24 – paragraph 2

Text proposed by the Commission

Amendment

It shall apply from [date: 15 months after entry into force].

It shall apply from ... [12 months from the date of entry into force of this Regulation].

Amendment 219

Proposal for a regulation

Article 24 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

However, Article 19(2) and (2a) shall apply from ... [the date of entry into force of this Regulation].

This Regulation shall apply regardless of whether the single portal referred to in Article 12a(2) is operational.

Amendment 220

Proposal for a regulation

Annex I – point 7 – paragraph 2

Text proposed by the Commission

Amendment

Regulation (EU) No 1315/2013 of the European Parliament and of the Council of 11 December 2013 on Union guidelines for the development of the trans-European transport network and repealing Decision No 661/2010/EU (OJ L 348, 20.12.2013, p. 1, ELI: http://data.europa.eu/eli/reg/2013/1315/oj).

Regulation (EU) 2024/1679 of the European Parliament and of the Council of 13 June 2024 on Union guidelines for the development of the trans-European transport network, amending Regulations (EU) 2021/1153 and (EU) No 913/2010 and repealing Regulation (EU) No 1315/2013 (OJ L 1679, 28.6.2024, ELI: http://data.europa.eu/eli/reg/2024/1679/oj).

Amendment 221

Proposal for a regulation

Annex I – point 17 a (new)

Text proposed by the Commission

Amendment

17a. European Defence Industry Programme (EDIP)

[Reference to be added once the Regulation has been adopted.]

Amendment 222

Proposal for a regulation

Annex I – point 20 a (new)

Text proposed by the Commission

Amendment

20a. Projects of common interest and projects of mutual interest

Commission Delegated Regulation (EU) 2024/1041 of 28 November 2023, amending Regulation (EU) 2022/869 of the European Parliament and of the Council as regards the Union list of projects of common interest and projects of mutual interest. (OJ L 107, 26.3.2021, p. 1, ELI: http://data.europa.eu/eli/reg_del/2024/1041/oj).

Amendment 223

Proposal for a regulation

Annex II – subheading 1

Text proposed by the Commission

Amendment

List of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union

List of technologies, materials, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union

Amendment 224

Proposal for a regulation

Annex II – point 3 – point a – introductory part

Text proposed by the Commission

Amendment

a. Advanced semiconductors technologies:

a. Semiconductors technologies:

Amendment 225

Proposal for a regulation

Annex II – point 3 – point a – indent 1

Text proposed by the Commission

Amendment

– microelectroics, including processors

– design of integrated circuits and other semiconductors, including microprocessors, graphic processors, microcontrollers, logic chips, memory chips, radio frequency chips, photonic chips, analog chips, quantum chips, optical semiconductors, power semiconductors, discretes and sensors / microsystem, as well as related semiconductor intellectual property core

Amendment 226

Proposal for a regulation

Annex II – point 3 – point a – indent 2

Text proposed by the Commission

Amendment

– photonics (including high energy laser) technologies

– electronic design automation software for the design of integrated circuits and other semiconductors, or for the design of advanced packaging

Amendment 227

Proposal for a regulation

Annex II – point 3 – point a – indent 3

Text proposed by the Commission

Amendment

– high frequency chips

– front-end fabrication of integrated circuits and other semiconductors

Amendment 228

Proposal for a regulation

Annex II – point 3 – point a – indent 4

Text proposed by the Commission

Amendment

– semiconductor manufacturing equipment at very advanced node sizes

– assembly, testing and packaging of integrated circuits and other semiconductors, including advanced printed circuit boards and packaging

Amendment 229

Proposal for a regulation

Annex II – point 3 – point a – indent 4 a (new)

Text proposed by the Commission

Amendment

– semiconductor manufacturing equipment, both for the front-end and back-end fabrication of integrated circuits and other semiconductors, including etching, deposition, epitaxy, lithography, advanced packaging, testing or metrology tools

Amendment 230

Proposal for a regulation

Annex II – point 3 – point a – indent 4 b (new)

Text proposed by the Commission

Amendment

– core components or software of semiconductor manufacturing equipment

Amendment 231

Proposal for a regulation

Annex II – point 3 – point a – indent 4 c (new)

Text proposed by the Commission

Amendment

– materials used in the fabrication of integrated circuits and other semiconductors, in particular specialty chemicals, rare gases, semiconductor materials, substrates or wafers

Amendment 232

Proposal for a regulation

Annex II – point 3 – point a – indent 4 d (new)

Text proposed by the Commission

Amendment

– data storage and processing equipment and facilities

Amendment 233

Proposal for a regulation

Annex II – point 3 – point b – introductory part

Text proposed by the Commission

Amendment

b. Artificial intelligence technologies:

b. Artificial intelligence technologies, meaning any technology or know-how related to a machine-based system that is designed to operate with varying levels of autonomy and that may exhibit adaptiveness after deployment, and that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments (‘AI system’), used for the following applications:

Amendment 234

Proposal for a regulation

Annex II – point 3 – point b – indent 1

Text proposed by the Commission

Amendment

– high performance computing

– generative AI systems trained using more than 10^25 FLOPS (floating point operations)

Amendment 235

Proposal for a regulation

Annex II – point 3 – point b – indent 2

Text proposed by the Commission

Amendment

– cloud and edge computing

– generative AI systems trained in a significant part on biological/ genomic data, or designed to be used in a biotechnological, space or defence context

Amendment 236

Proposal for a regulation

Annex II – point 3 – point b – indent 3

Text proposed by the Commission

Amendment

– data analytics technologies

deleted

Amendment 237

Proposal for a regulation

Annex II – point 3 – point b – indent 4

Text proposed by the Commission

Amendment

– computer vision, language processing, object recognition

deleted

Amendment 238

Proposal for a regulation

Annex II – point 3 – point e – indent 1

Text proposed by the Commission

Amendment

– Secure digital communications and connectivity, such as RAN & Open RAN (Radio Access Network) and 6G

– Secure digital communications and connectivity, such as RAN & Open RAN (Radio Access Network), 5G and 6G, laser and light communication

Amendment 239

Proposal for a regulation

Annex II – point 3 – point e – indent 2

Text proposed by the Commission

Amendment

– Cyber security technologies incl. cyber-surveillance, security and intrusion systems, digital forensics

– Cyber security technologies incl. cyber-surveillance, encryption, security and intrusion prevention and detection systems, digital forensics

Amendment 240

Proposal for a regulation

Annex II – point 3 – point e – indent 5 a (new)

Text proposed by the Commission

Amendment

– Submarine fibre-optic cables

Amendment 241

Proposal for a regulation

Annex II – point 3 – point g – indent 5 a (new)

Text proposed by the Commission

Amendment

– Operational technologies for all transport modes, such as signalling systems, traffic management systems and safety-related technologies

Amendment 242

Proposal for a regulation

Annex II – point 3 – point h – introductory part

Text proposed by the Commission

Amendment

h. Energy technologies:

h. Energy technologies, services and infrastructure:

Amendment 243

Proposal for a regulation

Annex II – point 3 – point h – indent 1

Text proposed by the Commission

Amendment

– Nuclear fusion technologies, reactors and power generation, radi ological conversion/enrichment/recycling technologies

– Nuclear technologies, reactors and power generation, radiological conversion/enrichment/recycling technologies, nuclear storage and disposal of radioactive waste

Amendment 244

Proposal for a regulation

Annex II – point 3 – point h – indent 3

Text proposed by the Commission

Amendment

– Net-zero technologies, including photovoltaics

– Net-zero technologies, including photovoltaics and solar thermal infrastructure, as well as onshore and offshore renewable energy technologies

Amendment 245

Proposal for a regulation

Annex II – point 3 – point h – indent 3 a (new)

Text proposed by the Commission

Amendment

– Grid operators (TSOs and DSOs)

Amendment 246

Proposal for a regulation

Annex II – point 3 – point h – indent 4

Text proposed by the Commission

Amendment

– Smart grids and energy storage, batteries

– European and cross-border grids, including smart grids and energy storage solutions, batteries, battery technologies for grid applications and renewable energy integration

Amendment 247

Proposal for a regulation

Annex II – point 5

Text proposed by the Commission

Amendment

5. The following critical entities and activities in the Union’s financial system: central counterparties2 , payment systems and payment institutions3 , electronic money institutions4 , market operators and investment firms that operate a multilateral trading facility or an organised trading facility5 , central securities depositories6 , significant issuers of asset-referenced tokens or e-money tokens and crypto asset service providers operating trading platforms for crypto-assets7 , large institutions8 , global providers of specialised financial messaging services and designated critical ICT third-party service providers9 .

5. The following critical entities and activities in the Union’s financial system:

(a) central counterparties or CCPs as defined in Article 2, point (1), of Regulation (EU) No 648/20122;

(b) payment systems and payment institutions as defined in Article 4, points (7) and (4) respectively, of Directive (EU) 2015/2366 of the European Parliament and of the Council3;

(c) electronic money institutions as defined in Article 2, point (1), of Directive 2009/110/EC of the European Parliament and of the Council4;

(d) market operators as defined in Article 4(1), point (18), of Directive 2014/65/EU of the European Parliament and of the Council5 and investment firms that operate a multilateral trading facility or an organised trading facility;

(e) central securities depositories as defined in Article 2(1), point (1), of Regulation (EU) No 909/2014 of the European Parliament and of the Council6;

(f) significant issuers of asset-referenced tokens or e-money tokens and crypto asset service providers operating trading platforms for crypto-assets as defined in Article 3(1), points (10), (6), (7), (15) and (18), respectively, of Regulation (EU) 2023/1114 of the European Parliament and of the Council7;

(g) large institutions as defined in Article 4(1), point (146), of Regulation (EU) No 575/2013 of the European Parliament and of the Council8;

(h) global providers of specialised financial messaging services and designated critical ICT third-party service providers as defined in Article 3, point (23), of Regulation (EU) 2022/2554 of the European Parliament and of the Council9;

(i) systemically important payment systems pursuant to an ECB decision based on Article 1(2) of Regulation (EU) No 795/2014 of the European Central Bank9a;

(j) insurance undertakings and reinsurance undertakings as defined in Article 13, points (1) and (4), of Directive 2009/138/EC of the European Parliament and of the Council9b with gross written premium income exceeding EUR 25 000 000 000 on average in the three calendar years prior to the year that the foreign investment has been notified.

__________________

2 Article 2(1) of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p.1, ELI: http://data.europa.eu/eli/reg/2012/648/oj.

2 Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p.1, ELI: http://data.europa.eu/eli/reg/2012/648/oj.

3 Article 4(7) and Art 4(4)of Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35, ELI: http://data.europa.eu/eli/dir/2015/2366/oj .

3 Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35, ELI: http://data.europa.eu/eli/dir/2015/2366/oj .

4 Article 2(1) of Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ L 267, 10.10.2009, p.7, ELI: http://data.europa.eu/eli/dir/2009/110/oj.

4 Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ L 267, 10.10.2009, p.7, ELI: http://data.europa.eu/eli/dir/2009/110/oj.

5 Article 4(1)(18) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349, ELI: http://data.europa.eu/eli/dir/2014/65/oj.

5 Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349, ELI: http://data.europa.eu/eli/dir/2014/65/oj.

6 Article 2(1)(1) of Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (OJ L 257, 28.8.2014, p.1, ELI: http://data.europa.eu/eli/reg/2014/909/oj.

6 Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (OJ L 257, 28.8.2014, p.1, ELI: http://data.europa.eu/eli/reg/2014/909/oj.

7 Articles 3(1)(6), 3(1)(7) and 3(1)(10), 3(1)(15) and Article 3(1)(18) of Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (OJ L 150, 9.6.2023, p.40, ELI: http://data.europa.eu/eli/reg/2023/1114/oj.

7 Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (OJ L 150, 9.6.2023, p.40, ELI: http://data.europa.eu/eli/reg/2023/1114/oj.

8 Article 4(1)(146) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p.1, ELI: http://data.europa.eu/eli/reg/2013/575/oj.

8 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p.1, ELI: http://data.europa.eu/eli/reg/2013/575/oj.

9 Article 3(23) of Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022 on digital operational resilience for the financial sector and amending Regulations (EC) No 1060/2009, (EU) No 648/2012, (EU) No 600/2014, (EU) No 909/2014 and (EU) 2016/1011 (OJ L 333, 27.12.2022, p.1, ELI: http://data.europa.eu/eli/reg/2022/2554/oj.

9 Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022 on digital operational resilience for the financial sector and amending Regulations (EC) No 1060/2009, (EU) No 648/2012, (EU) No 600/2014, (EU) No 909/2014 and (EU) 2016/1011 (OJ L 333, 27.12.2022, p.1, ELI: http://data.europa.eu/eli/reg/2022/2554/oj.

9a Regulation of the European Central Bank (EU) No 795/2014 of 3 July 2014 on oversight requirements for systemically important payment systems (OJ L 217, 23.7.2014, p. 16, ELI: http://data.europa.eu/eli/reg/2014/795/oj).

9b Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009, p. 1, ELI: http://data.europa.eu/eli/dir/2009/138/oj).

Amendment 248

Proposal for a regulation

Annex II – point 5 a (new)

Text proposed by the Commission

Amendment

5a. Transport industries, technologies and infrastructure components of critical importance:

(a) Aerospace manufacturing industry, including the production, maintenance and operation of aircraft, as well as their engines, propellers, parts, non-installed equipment and equipment1a

(b) Maritime technology industry, including, production, maintenance and conversion of all types of ships1b and equipment1c

(c) Rail industry, including all aspects of design, manufacturing, maintenance and refurbishment of rail transport systems, subsystems and related equipment1d

(d) Automotive industry, including automotive suppliers1e, refuelling infrastructure, including electric charging infrastructure1f and intelligent transport systems (ITS)1g

__________________

1a Article 2.1 (a) (b) Regulation (EU) 2018/1139 of the European Parliament and of the Council of 4 July 2018 on common rules in the field of civil aviation and establishing a European Union Aviation Safety Agency, and amending Regulations (EC) No 2111/2005, (EC) No 1008/2008, (EU) No 996/2010, (EU) No 376/2014 and Directives 2014/30/EU and 2014/53/EU of the European Parliament and of the Council, and repealing Regulations (EC) No 552/2004 and (EC) No 216/2008 of the European Parliament and of the Council and Council Regulation (EEC) No 3922/91.

1b Article 12 (a, b, c) Framework of State Aid to Shipbuilding O2011/C 364/06).

1c Article 2 (1) Directive 2014/90/EU of the European Parliament and of the Council of 23 July 2014 on marine equipment and repealing Council Directive 96/98/EC.

1d Annex II Directive (EU) 2016/797 of the European Parliament and of the Council of 11 May 2016 on the interoperability of the rail system within the European Union Industries responsible for the production of all categories of self-propelled road-vehicles (including passenger cars, buses, motor cycles, vans, trucks), together with their equipment and parts, falling inter alia under Chapters 40, 84, 85, 87, 90 and 94 of the Harmonised System Nomenclature issued by the World Custom Organisation (HS 2017).

1e Industries responsible for the production of all categories of self-propelled road-vehicles (including passenger cars, buses, motor cycles, vans, trucks), together with their equipment and parts, falling inter alia under Chapters 40, 84, 85, 87, 90 and 94 of the Harmonised System Nomenclature issued by the World Custom Organisation (HS 2017).

1f Article 2 (17) (21) (48) (49) (50) (51) (52) (53) (56) (59) of Regulation (EU) 2023/1804 of the European Parliament and of the Council of 13 September 2023 on the deployment of alternative fuels infrastructure, and repealing Directive 2014/94/EU.

1g Article 4 (1) of Directive 2010/40/EU of the European Parliament and of the Council of 7 July 2010 on the framework for the deployment of Intelligent Transport Systems in the field of road transport and for interfaces with other modes of transport.

Amendment 249

Proposal for a regulation

Annex II – point 5 b (new)

Text proposed by the Commission

Amendment

5b. Media services as defined in Article 2, point (1), of Regulation (EU) 2024/1083 of the European Parliament and of the Council of 11 April 2024 establishing a common framework for media services in the internal market and amending Directive 2010/13/EU (European Media Freedom Act) that contribute to public opinion formation and are characterised by particular topicality and broad impact.

Amendment 250

Proposal for a regulation

Annex II – point 5 c (new)

Text proposed by the Commission

Amendment

5c. Electoral infrastructure: the physical and digital systems, processes, and facilities necessary for the organisation and conduct of elections, including voting systems, voter registration databases and other technological systems ensuring the integrity, accessibility, and security of electoral processes.

Amendment 251

Proposal for a regulation

Annex II – point 5 d (new)

Text proposed by the Commission

Amendment

5d. Critical raw materials as listed in Annexes I and II of Regulation (EU) 2024/12521a:

– extraction and refining of critical raw materials

– recycling and recovery technologies for critical raw materials, particularly from batteries and electronic waste

– strategic stockpiling and storage facilities for critical raw materials

– supply chain infrastructure for the secure transport and distribution of critical raw materials

– research and development into material substitution, processing innovations, and advanced recycling methods

__________________

1aj Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024 establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020.

Amendment 252

Proposal for a regulation

Annex II – point 5 e (new)

Text proposed by the Commission

Amendment

5e. Farming, when the Union target possesses or operates more than 10,000 hectares of farmland.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he received input from the following entities or persons in the preparation of the report, prior to the adoption thereof in committee:

Entity and/or person

Airbus

American Chamber of Commerce to the European Union

Australian embassy

BUSINESSEUROPE

Carl Zeiss AG

Center for Strategic and International Studies

CMS law

European Commission - DG Trade

European Council on Foreign Relations

European Electronic Component Manufacturers' Association

European Sea Ports Organisation

FEPORT

FGS Global

Grand Port Fluvio-maritime de l'Axe Seine

IBM Corporation

Institut Français des Relations internationales

Invest Europe

Linklaters

Ministère de l’Économie et des Finances - Direction générale du Trésor

Nel Hydrogen

OECD

Rhodium Group

UNIFE

US Mission to the EU

WindEurope

The list above is drawn up under the exclusive responsibility of the rapporteur.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that he has submitted to the natural persons concerned the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

30.1.2025

OPINION OF THE COMMITTEE ON ECONOMIC AND MONETARY AFFAIRS

for the Committee on International Trade

on the proposal for a Regulation of the European Parliament and of the Council on the screening of foreign investments in the Union and repealing Regulation (EU) 2019/452 of the European Parliament and of the Council

(COM(2024)0023 – C90011/2024 – 2024/0017(COD))

Rapporteur for opinion: Markus Ferber

AMENDMENTS

The Committee on Economic and Monetary Affairs submits the following to the Committee on International Trade, as the committee responsible:

Amendment 1

Proposal for a regulation

Recital 7 a (new)

Text proposed by the Commission

Amendment

(7a) Acquisitions through resolution tools under the respective resolution frameworks (for banks, central counterparties or reinsurance or reinsurance undertakings) should be excluded from the scope of this Regulation. In resolution, time is of the essence and decisions are often made literally overnight. The in-depth screening procedures provided for in this Regulation are not in line with the need for a timely response. In order to avoid financial stability risks, resolution transactions should therefore be excluded. Resolution authorities should take into account, to the extent possible, this Regulation when performing resolution actions with the involvement of a foreign investor, in particular when strategic assets are involved.

Amendment 2

Proposal for a regulation

Recital 9

Text proposed by the Commission

Amendment

(9) To ensure a consistent approach to foreign investment screening across the Union, all Member States should be required to screen foreign investments on the grounds of security or public order. Therefore, the core elements of national screening mechanisms should be harmonised. That minimum harmonisation includes the scope of investments to be screened, the screening procedure’s essential features, and the interaction between the national mechanism and the Union cooperation mechanism. In addition, Member States should also be able to extend the scope of their national screening mechanism to include other types of foreign investments, foreign investments in other sectors, additional Union targets or economic activities that the relevant Member State considers critical for its security or public order. When they do so, such screening should also comply with the provisions of this Regulation.

(9) To ensure a consistent approach to foreign investment screening across the Union, all Member States should be required to screen foreign investments on the grounds of security or public order. Therefore, the core elements of national screening mechanisms should be harmonised. That minimum harmonisation includes the scope of investments to be screened, the screening procedure’s essential features, and the interaction between the national mechanism and the Union cooperation mechanism. In addition, Member States should also be able to extend the scope of their national screening mechanism to include other types of foreign investments, foreign investments in other sectors, additional Union targets or economic activities that the relevant Member State considers critical for its security or public order. Where appropriate, Member States should consult or, alternatively, inform the regional authorities concerned by the screening of a foreign investment. When they do so, such screening should also comply with the provisions of this Regulation.

Amendment 3

Proposal for a regulation

Recital 10

Text proposed by the Commission

Amendment

(10) Regulation (EU) 2019/452 only covers FDIs made from third countries into the Union. However, it is also necessary to extend the scope of the cooperation mechanism to investments made between Member States, where the investor in one Member State is controlled, directly or indirectly, by a foreign entity regardless of whether the ultimate owner is located in the Union or elsewhere. In particular, this extended scope is appropriate to ensure that any investment creating a lasting link between the foreign investor and the Union target, whether it is carried out directly by a foreign investor or through an entity established in the Union and controlled by a foreign investor, is consistently captured and assessed. This should foster the consistency and predictability of screening rules across Member States, which in turn will reduce compliance costs for foreign investors and limit incentives to target an investment in Member States where such transactions are out of scope.

(10) Regulation (EU) 2019/452 only covers FDIs made from third countries into the Union. However, it is also necessary to extend the scope of the cooperation mechanism to investments made between Member States, where the investor in one Member State is controlled, directly or indirectly, by a foreign entity regardless of whether the ultimate owner is located in the Union or elsewhere. In particular, this extended scope is appropriate to ensure that any investment creating a link between the foreign investor and the Union target, whether it is carried out directly by a foreign investor or through an entity established in the Union and controlled by a foreign investor, is consistently captured and assessed. This should foster the consistency and predictability of screening rules across Member States, which in turn will reduce compliance costs for foreign investors and limit incentives to target an investment in Member States where such transactions are out of scope. It is particularly important for the risk assessment to take into consideration whether the ultimate owner has decision-making power on the investment. The assessment should also maintain sufficient flexibility to make it possible to take into consideration the specific character and structure of investments within the Union carried out by foreign investors.

Amendment 4

Proposal for a regulation

Recital 11

Text proposed by the Commission

Amendment

(11) Investments in Union targets carried out by foreign investors, including investments executed through a controlled entity in the Union, may present specific risks to security and public order in the Union and its Member States. Such investor-related risks should not be present and therefore do not need to be addressed in an investment that only involves entities where no ownership, control, connection to or influence from foreign investors is present, including when a foreign investor participates in the Union entity without a controlling stake. Avoiding any divergence in the rules applicable to the treatment of foreign investments, regardless of whether they are made from outside the Union directly or through an entity already established in the Union, is necessary to ensure a coherent investment screening framework and the Union control mechanism. This framework reflects the importance of protecting security and public order and is exclusively targeted at risks that may arise from investments involving foreign entities. Therefore, Member States should ensure at least the screening of those foreign investments, which relate to projects or programmes of Union interest or where the Union target is active in areas, where a foreign investment may affect security or public order in more than one Member State. Member States should also be able to screen other foreign investments. When they do so, such screening should also comply with the provisions of this Regulation. Transactions with no foreign investor involvement or in which the level of involvement does not lead to the direct or indirect control of the Union entity are not covered by this Regulation.

(11) Investments in Union targets carried out by foreign investors, including investments executed through a controlled entity in the Union, may present specific risks to security and public order in the Union and its Member States. Such investor-related risks should not be present and therefore do not need to be addressed in an investment that only involves entities where no ownership, control, connection to or influence from foreign investors is present, including when a foreign investor participates in the Union entity without a controlling stake. Avoiding any divergence in the rules applicable to the treatment of foreign investments, regardless of whether they are made from outside the Union directly or through an entity already established in the Union, is necessary to ensure a coherent investment screening framework and the Union control mechanism. This framework reflects the importance of protecting security and public order and is exclusively targeted at risks that may arise from investments involving foreign entities. Therefore, Member States should ensure at least the screening of those foreign investments, which relate to projects or programmes of Union interest or where the Union target is active in areas, where a foreign investment may affect security or public order in more than one Member State, or where the transaction involves a foreign investor and the investment is from a country identified in Annex I to the Council conclusions on the revised list of non-cooperative jurisdictions for tax purposes in its most up-to-date version, or a foreign investor linked to a sanctioned country. Member States should also be able to screen other foreign investments. When they do so, such screening should also comply with the provisions of this Regulation. Transactions with no foreign investor involvement or in which the level of involvement does not lead to the direct or indirect control of the Union entity are not covered by this Regulation.

Amendment 5

Proposal for a regulation

Recital 16

Text proposed by the Commission

Amendment

(16) Foreign investments that create or maintain lasting and direct links between investors from third countries (including state bodies) and Union targets carrying out an economic activity in a Member State should fall within the scope of this Regulation. This should apply where those investments are directly carried out from third countries or by a Union entity with foreign control. However, the framework should not cover the acquisition of company securities intended purely for financial investment without any intention to influence the management and control of the undertaking (portfolio investments). Restructuring operations within a group of companies or a merger of more than one legal entities into a single legal entity do not constitute a foreign investment, provided that there is no increase in the shares held by foreign investors, or the transaction does not result in additional rights that may lead to a change in the effective participation of one or more foreign investors in the management or control of a Union target.

(16) Foreign investments that create or maintain direct links between investors from third countries (including state bodies) and Union targets carrying out an economic activity in a Member State should fall within the scope of this Regulation. This should apply where those investments are directly carried out from third countries or by a Union entity with foreign control, including all situations in which control is acquired as set out in Council Regulation (EC) No 139/20041a. However, the framework should not cover the acquisition of company securities intended purely for financial investment where there is no influence the management and control of the undertaking (portfolio investments). Restructuring operations within a group of companies or a merger of more than one legal entities into a single legal entity do not constitute a foreign investment, provided that there is no increase in the shares held by foreign investors, or the transaction does not result in additional rights that may lead to a change in the effective participation of one or more foreign investors in the management or control of a Union target.

_______________

1a Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (the EC Merger Regulation) (OJ L 24, 29.1.2004, p. 1, ELI: http://data.europa.eu/eli/reg/2004/139/oj ).

Amendment 6

Proposal for a regulation

Recital 17

Text proposed by the Commission

Amendment

(17) Greenfield foreign investments occur where the foreign investor or a foreign investor’s subsidiary in the Union sets up new facilities or a new undertaking in the Union. Greenfield foreign investments should fall within the scope of this Regulation to the extent they are considered relevant by a Member State for the purpose of the screening of foreign investments because they create lasting and direct links between a foreign investor and such facilities or such undertakings. In addition, by setting up new facilities, a foreign investor can impact on security and public order, including when that risk concerns essential economic inputs. Member States are therefore encouraged to include greenfield foreign investments in the scope of transactions covered by their screening mechanisms, in particular when such investments occur in sectors relevant to their security or public order or when they present characteristics such as size or essential nature to be relevant to their security or public order.

(17) Greenfield foreign investments occur where the foreign investor or a foreign investor’s subsidiary in the Union sets up new facilities or a new undertaking in the Union. Greenfield foreign investments should fall within the scope of this Regulation to the extent they are considered relevant by a Member State for the purpose of the screening of foreign investments because they create direct links between a foreign investor and such facilities or such undertakings. In addition, by setting up new facilities, a foreign investor can impact on security and public order, including when that risk concerns essential economic inputs. Member States are therefore encouraged to include greenfield foreign investments in the scope of transactions covered by their screening mechanisms, in particular when such investments occur in sectors relevant to their security or public order or when they present characteristics such as size or essential nature to be relevant to their security or public order.

Amendment 7

Proposal for a regulation

Recital 20

Text proposed by the Commission

Amendment

(20) To ensure that foreign investments likely to negatively affect security or public order in the Union are adequately identified, Member States should screen foreign investments where the Union target is part of or participates in a project or programme of Union interest or where the Union target’s economic activity relates to a technology, asset, facility, equipment, network, system or service of particular importance for the security or public order interests of the Union. In addition to these criteria, screening mechanisms may apply to other sectors, Union targets or economic activities that the relevant Member State considers critical for its security or public order.

(20) This Regulation should be based on the criterion that there is the probability of a threat to a fundamental interest of society, and that criterion should be appropriate and necessary as set out in the case-law of the Court of Justice of the European Union. To ensure that foreign investments likely to negatively affect security or public order in the Union are adequately identified, in accordance with the case-law of the Court of Justice, Member States should screen foreign investments where the Union target is part of or participates in a project or programme of Union interest or where the Union target’s economic activity relates to a technology, asset, facility, equipment, network, system or service of particular importance for the security or public order interests of the Union. In addition to these criteria, screening mechanisms may apply to other sectors, Union targets or economic activities that the relevant Member State considers critical for its security or public order.

Amendment 8

Proposal for a regulation

Recital 21

Text proposed by the Commission

Amendment

(21) To ensure that the cooperation mechanism focuses only on those foreign investments where the characteristics of the foreign investor or the Union target make an effect on security or public order likely, it is appropriate to establish risk-based conditions for the notification of foreign investments undergoing screening in a Member State to the other Member States and the Commission. Where a foreign investment does not meet any of the conditions, the Member State where the foreign investment is undergoing screening may notify the foreign investment to the other Member States and the Commission, including where the Union target has significant operations in other Member States, or belongs to a corporate group that has several companies in different Member States.

(21) To ensure that the cooperation mechanism focuses only on those foreign investments where the characteristics of the foreign investor or the Union target make an effect on security or public order likely, it is appropriate to establish risk-based conditions for the notification of foreign investments undergoing screening in a Member State to the other Member States, the Commission and, where relevant, the European Central Bank, the European Supervisory Authorities and the Single Supervisory Mechanism. Where a foreign investment does not meet any of the conditions, the Member State where the foreign investment is undergoing screening may notify the foreign investment to the other Member States and the Commission, including where the Union target has significant operations in other Member States, or belongs to a corporate group that has several companies in different Member States.

Amendment 9

Proposal for a regulation

Recital 32

Text proposed by the Commission

Amendment

(32) Member States or the Commission, as appropriate, might consider relevant information received from economic operators, civil society organisations, social partners (such as trade unions) about a foreign investment likely to negatively affect security or public order.

(32) Member States or the Commission, as appropriate, might consider relevant information received from economic operators, civil society organisations, social partners (such as trade unions) about a foreign investment likely to negatively affect security or public order according to the case-law of the Court of Justice.

Amendment 10

Proposal for a regulation

Recital 44

Text proposed by the Commission

Amendment

(44) The Commission should evaluate the functioning and effectiveness of this Regulation 5 years after the date of application of this Regulation and every 5 years after that and present a report to the European Parliament and to the Council. That report should include an assessment of whether or not this Regulation should be amended. Where the report proposes amending this Regulation, it may be accompanied by a legislative proposal.

(44) The Commission should review the functioning and effectiveness of this Regulation 24 months after the date of application of this Regulation and every 24 months thereafter and present a report to the European Parliament and to the Council. That report should also focus on the adequacy of the list of projects, programmes and the list of technologies in the Annexes to this Regulation. That report should include an assessment of whether or not this Regulation should be amended. Where the report proposes amending this Regulation, it may be accompanied by a legislative proposal.

Amendment 11

Proposal for a regulation

Recital 44 a (new)

Text proposed by the Commission

Amendment

(44a) Given the drastic impact this Regulation has on Union businesses and governments, any legislative proposal made in the context of the review process should be accompanied by an impact assessment.

Amendment 12

Proposal for a regulation

Recital 49

Text proposed by the Commission

Amendment

(49) In order to take into account developments relating to projects or programmes of Union interest and to adapt the list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amendments to the Annexes to this Regulation. The list of projects and programmes of Union interest set out in Annex I should cover projects or programmes covered by EU law which provide for the development, maintenance or acquisition of critical infrastructure, critical technologies or critical inputs which are essential for security or public order. The list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union set out in Annex II should include areas where a foreign investment may affect security or public order in more than one Member State or in the Union as a whole through an Union target, which does not participate in or receive funds from a project or programme of Union interest. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making16. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(49) In order to take into account developments relating to projects or programmes of Union interest and to adapt the list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union, the Annexes to this Regulation should be reviewed every two years. If amendments to the annexes are necessary, the Commission should adopt a legislative proposal in that regard.

__________________

16 OJ L 123, 12.5.2016, p. 1.

Amendment 13

Proposal for a regulation

Recital 49 a (new)

Text proposed by the Commission

Amendment

(49a) The financial services sector is important for the stability and growth of the Union economy, serving as the backbone for capital allocation, risk management, and payment systems. Ensuring the integrity and resilience of the financial service sector is crucial, as disruptions can have widespread repercussions on both Union security and the Union economy. It is therefore justified to subject undertakings from the financial sector which have a significant impact on the Union’s financial stability to foreign investment screening procedures. In order to accurately assess potential threats to the Union financial system, the European Central Bank the European Supervisory Authorities, and the Single Supervisory Mechanism should be given a formal role in the foreign investment screening process, where the financial services sector is affected.

Amendment 14

Proposal for a regulation

Recital 51

Text proposed by the Commission

Amendment

(51) Regulation (EU) 2019/452 should be repealed. In order to allow sufficient time for Member States and entities to prepare for the implementation, this Regulation should apply as of [add date: 15 months after entry into force]. In the transitional period between the entry into force and the application of this Regulation, Regulation (EU) 2019/452 should continue to apply,

(51) Regulation (EU) 2019/452 should be repealed. In order to allow sufficient time for Member States and entities to prepare for the implementation, this Regulation should apply as of ... [ 12 months from the date of entry into force of this Regulation]. In the transitional period between the entry into force and the application of this Regulation, Regulation (EU) 2019/452 should continue to apply,

Amendment 15

Proposal for a regulation

Article 1 – paragraph 2

Text proposed by the Commission

Amendment

2. This Regulation establishes a cooperation mechanism to enable Member States and the Commission to exchange information on foreign investments, assess their potential impact on security or public order, and identify potential concerns that shall be addressed by the Member State that is screening the foreign investment.

2. This Regulation establishes a cooperation mechanism to enable Member States and the Commission, assisted by, where applicable, other specialised Union institutions, bodies and agencies, to exchange information on foreign investments, assess their potential impact on security or public order, and identify potential concerns that shall be addressed by the Member State that is screening the foreign investment.

Amendment 16

Proposal for a regulation

Article 1 – paragraph 3

Text proposed by the Commission

Amendment

3. Member States may adopt or maintain in force national provisions in fields not coordinated by this Regulation.

3. Member States may adopt or maintain in force national provisions in fields not coordinated by this Regulation, as long as the content of those national provisions does not restrict the scope of this Regulation.

Amendment 17

Proposal for a regulation

Article 2 – paragraph 1 – point 2

Text proposed by the Commission

Amendment

(2) ‘foreign direct investment’ means an investment of any kind by a foreign investor aiming to establish or to maintain lasting and direct links between the foreign investor and an existing or to be established Union target, and to which target the foreign investor makes capital available in order to carry out an economic activity in a Member State;

(2) ‘foreign direct investment’ means an investment of any kind by a foreign investor aiming to establish or to maintain direct links between the foreign investor and an existing or to be established Union target, and to which target the foreign investor makes capital available in order to carry out an economic activity in a Member State;

Amendment 18

Proposal for a regulation

Article 2 – paragraph 1 – point 3

Text proposed by the Commission

Amendment

(3) ‘investment within the Union with foreign control’ means an investment of any kind carried out by a foreign investor through the foreign investor’s subsidiary in the Union, that aims to establish or to maintain lasting and direct links between the foreign investor and a Union target that exists or is to be established, and to which target the foreign investor makes capital available in order to carry out an economic activity in a Member State;

(3) ‘investment within the Union with foreign control’ means an investment of any kind carried out by a foreign investor through the foreign investor’s subsidiary in the Union, that aims to establish or to maintain direct links between the foreign investor and a Union target, and to which target the foreign investor makes capital available in order to carry out an economic activity in a Member State; and, in any case, covers all situations in which control is acquired over the foreign investor's subsidiary as set out in Article 3(2) of Council Regulation (EC) No 139/2004;

Amendment 19

Proposal for a regulation

Article 2 – paragraph 1 – point 3 a (new)

Text proposed by the Commission

Amendment

3a. ‘control’ means control as set out in Article 3(2) of Council Regulation (EC) No 139/2004;

Amendment 20

Proposal for a regulation

Article 2 – paragraph 1 – point 7

Text proposed by the Commission

Amendment

(7) ‘foreign investor’s subsidiary in the Union’ means an economically active undertaking established under the laws of a Member State meeting the conditions set out in Article 22(1) of Directive 2013/34/EU of the European Parliament and of the Council of 26 June 201318 , and directly or indirectly controlled by a foreign investor;

(7) ‘foreign investor’s subsidiary in the Union’ means an undertaking established under the laws of a Member State regardless of its legal form meeting the conditions set out in Article 22(1) of Directive 2013/34/EU of the European Parliament and of the Council of 26 June 201318, and directly or indirectly controlled by a foreign investor;

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18 Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19–76, ELI: http://data.europa.eu/eli/dir/2013/34/oj).

Amendment 21

Proposal for a regulation

Article 2 – paragraph 1 – point 11 a (new)

Text proposed by the Commission

Amendment

(11a) 'sanctioned country' means a jurisdiction currently being sanctioned by the Union as a whole, or individually by the Member State conducting the screening process;

Amendment 22

Proposal for a regulation

Article 2 – paragraph 1 – point 18

Text proposed by the Commission

Amendment

(18) ‘projects or programmes of Union interest’ means projects or programmes covered by Union law that provide for the development, maintenance or acquisition of critical infrastructure, critical technologies or critical inputs which are essential for security or public order and are listed in Annex I;

(18) ‘projects or programmes of Union interest’ means projects or programmes covered by Union law that provide for the development, maintenance or acquisition of critical infrastructure, critical technologies or critical inputs or strategic services, which are essential for security or public order and are listed in Annex I;

Amendment 23

Proposal for a regulation

Article 3 – paragraph 3

Text proposed by the Commission

Amendment

3. Each Member State shall notify to the Commission the measures adopted pursuant to paragraph 1 no later than [date: 15 months after entry into force]. Member States shall thereafter notify the Commission of any amendment to their screening mechanism within 30 days of the adoption of the amendment.

3. Each Member State shall notify to the Commission the measures adopted pursuant to paragraph 1 no later than ... [ 12 months from the date of entry into force of this Regulation]. Member States shall thereafter notify the Commission of any amendment to their screening mechanism within 30 days of the adoption of the amendment.

Amendment 24

Proposal for a regulation

Article 3 – paragraph 4

Text proposed by the Commission

Amendment

4. The Commission shall make publicly available a list of Member States’ screening mechanisms no later than 3 months after having received all the notifications referred to in paragraph 3 or by [date: 21 months after entry into force], whichever occurs first. The Commission shall keep that list up to date.

4. The Commission shall make publicly available a list of Member States’ screening mechanisms no later than 3 months after having received all the notifications referred to in paragraph 3 or by ... [18 months from the date of entry into force of this Regulation], whichever occurs first. The Commission shall keep that list up to date.

Amendment 25

Proposal for a regulation

Article 4 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

1a. The first paragraph of this Article shall not apply where the investment takes place by virtue of the application of a resolution tool in accordance with Directive 2014/59/EU of the European Parliament and of the Council1a, and by Regulations (EU) No 1093/20101b, (EU) No 648/20121c, and (EU) No 806/20141d of the European Parliament and of the Council or Regulation (EU) 2021/23 of the European Parliament and of the Council1e.

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1a Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council (OJ L 173, 12.6.2014, p. 190, ELI: http://data.europa.eu/eli/dir/2014/59/oj).

1b Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15/12/2010, p. 12, ELI: http://data.europa.eu/eli/reg/2010/1093/oj )

1c Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p.1, ELI: http://data.europa.eu/eli/reg/2012/648/oj

1d Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014 establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund and amending Regulation (EU) No 1093/2010 (OJ L 225, 30.7.2014, p. 1, ELI: http://data.europa.eu/eli/reg/2014/806/oj)

1e Regulation (EU) 2021/23 of the European Parliament and of the Council of 16 December 2020 on a framework for the recovery and resolution of central counterparties and amending Regulations (EU) No 1095/2010, (EU) No 648/2012, (EU) No 600/2014, (EU) No 806/2014 and (EU) 2015/2365 and Directives 2002/47/EC, 2004/25/EC, 2007/36/EC, 2014/59/EU and (EU) 2017/1132 (OJ L 22, 22.1.2021, p. 1, ELI: http://data.europa.eu/eli/reg/2021/23/oj)

Amendment 26

Proposal for a regulation

Article 4 – paragraph 2 – point a

Text proposed by the Commission

Amendment

(a) adequate procedures shall be provided for the screening authority to determine whether it has jurisdiction over a foreign investment filed for authorisation and to carry out an initial review followed by, where necessary, an in-depth investigation to determine whether that foreign investment is likely to negatively affect security or public order. The purpose of the in-depth investigation shall be, in particular, to determine whether a screening decision as referred to in Article 14(1) is appropriate and to determine its content.

(a) adequate procedures shall be provided for the screening authority to determine whether it has jurisdiction over a foreign investment filed for authorisation and to carry out an initial review followed by, where necessary, an in-depth investigation to determine, without undue delay, whether that foreign investment is likely to negatively affect security or public order. The purpose of the in-depth investigation shall be, in particular, to determine whether a screening decision as referred to in Article 14(1) is appropriate and to determine its content.

Amendment 27

Proposal for a regulation

Article 4 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b) the screening authority shall monitor and ensure compliance with the screening mechanism and screening decisions. In particular, it shall put in place adequate procedures to identify and prevent circumvention of the screening mechanism and screening decisions;

(b) the screening authority shall monitor and ensure compliance with the screening mechanism and screening decisions. In particular, it shall put in place adequate procedures to identify and prevent circumvention of the screening mechanism and screening decisions; such a procedure may also include mechanisms aimed at consulting the regional authorities concerned by the foreign investment;

Amendment 28

Proposal for a regulation

Article 4 – paragraph 2 – point c

Text proposed by the Commission

Amendment

(c) the screening authority shall be empowered to start screening foreign investments by its own initiative for at least 15 months after the completion of a foreign investment that is not subject to an authorisation requirement where the screening authority has grounds to consider that the foreign investment may affect security or public order;

(c) the screening authority shall be empowered to start screening foreign investments by its own initiative for at least 18 months after the completion of a foreign investment that is not subject to an authorisation requirement where the screening authority has grounds to consider that the foreign investment may affect security or public order;

Amendment 29

Proposal for a regulation

Article 4 – paragraph 4 – point b

Text proposed by the Commission

Amendment

(b) is economically active in one of the areas listed in Annex II.

(b) is economically active in one of the areas listed in Annex II; or

Amendment 30

Proposal for a regulation

Article 4 – paragraph 4 – point b a (new)

Text proposed by the Commission

Amendment

(ba) is subject to a transaction involving a foreign investor and directly stemming from a country identified in Annex I to the Council conclusions on the revised list of non-cooperative jurisdictions for tax purposes in its most up-to-date version; or

Amendment 31

Proposal for a regulation

Article 4 – paragraph 4 – point b b (new)

Text proposed by the Commission

Amendment

(bb) is subject to a transaction involving a foreign investor linked to a sanctioned country, at the time of the transaction.

Amendment 32

Proposal for a regulation

Article 5 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) meets the conditions set out in Article 4(4) point (a); or

(a) meets the conditions set out in Article 4(4), point (a), or Article 4(4), point (ba) or Article 4(4), point (bb); or

Amendment 33

Proposal for a regulation

Article 5 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall notify the Commission and the other Member States of any foreign investment in a Union target established in their territory where they initiate an in-depth investigation under their screening procedures. Furthermore, Member States shall notify the Commission and the other Member States of any foreign investment in a Union target established in their territory, in exceptional cases, where they intend to impose a mitigating measure or to prohibit the transaction without an in-depth investigation.

2. Member States shall notify, at the earliest possible time, the Commission and the other Member States of any foreign investment in a Union target established in their territory where they initiate an in-depth investigation under their screening procedures. Furthermore, Member States shall notify, at the earliest possible time, the Commission and the other Member States of any foreign investment in a Union target established in their territory, in exceptional cases, where they intend to impose a mitigating measure or to prohibit the transaction without an in-depth investigation.

Amendment 34

Proposal for a regulation

Article 5 – paragraph 3 a (new)

Text proposed by the Commission

Amendment

3a. Where a notification received by the Commission concerns an entity listed in points (a), (d), (e), (f) or (h) of point 5 of Annex II, the Commission shall transmit the notification to the European Supervisory Authority (European Securities and Markets Authority) (ESMA);

Amendment 35

Proposal for a regulation

Article 5 – paragraph 3 b (new)

Text proposed by the Commission

Amendment

3b. Where a notification received by the Commission concerns an entity listed in points (b), (c) or (f) of point 5 of Annex II, the Commission shall transmit the notification to the European Supervisory Authority (European Banking Authority) (EBA);

Amendment 36

Proposal for a regulation

Article 5 – paragraph 3 c (new)

Text proposed by the Commission

Amendment

3c. Where a notification received by the Commission concerns an entity listed in point (j) of point 5 of Annex II, the Commission shall transmit the notification to the European Supervisory Authority (European Insurance and Occupational Pensions Authority) (EIOPA);

Amendment 37

Proposal for a regulation

Article 5 – paragraph 3 d (new)

Text proposed by the Commission

Amendment

3d. Where a notification received by the Commission concerns an entity listed in point (g) of point 5 of Annex II, the Commission shall transmit the notification to the Single Supervisory Mechanism;

Amendment 38

Proposal for a regulation

Article 5 – paragraph 3 e (new)

Text proposed by the Commission

Amendment

3e. Where a notification received by the Commission concerns an entity listed in point (i) of point 5 of Annex II, the Commission shall transmit the notification to the European Central Bank;

Amendment 39

Proposal for a regulation

Article 7 – title

Text proposed by the Commission

Amendment

Comments by Member States and opinions by the Commission on notified foreign investments

Comments by Member States and opinions by the Commission, the European Central Bank, European Supervisory Authorities or the Single Supervisory Mechanism on notified foreign investments

Amendment 40

Proposal for a regulation

Article 7 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

2a. Where a notification received by the Commission has been transmitted in line with Articles 5(3a) to (3e), the European Central Bank, the responsible European Supervisory Authority or the Single Supervisory Mechanism may issue a duly motivated opinion addressed to the notifying Member State and inform the Commission thereof via the secure and encrypted system referred to in Article 12(4).

Amendment 41

Proposal for a regulation

Article 7 – paragraph 2 b (new)

Text proposed by the Commission

Amendment

2b. The Commission shall take into account any opinion issued pursuant to paragraph 2a when drafting their own duly motivated opinion.

Amendment 42

Proposal for a regulation

Article 7 – paragraph 3

Text proposed by the Commission

Amendment

3. The Commission may issue a duly motivated opinion addressed to all Member States if it considers that several foreign investments or other similar investments if they were to be made, taken together, and having regard to their characteristics could affect the security or public order of the Union. After a Commission opinion is issued, the Commission may, as appropriate, discuss with Member States how to address the identified risks.

3. The Commission may issue a duly motivated opinion addressed to a Member State, a group of Member States or all Member States if it considers that foreign investment or several similar investments if they were to be made, taken together or individually, and having regard to their characteristics could affect the security or public order of the Union. After a Commission opinion is issued, the Commission may, as appropriate, discuss with Member States the actions to address the identified risks.

Amendment 43

Proposal for a regulation

Article 7 – paragraph 9

Text proposed by the Commission

Amendment

9. Where the Member States or the Commission indicate that the screening decision referred to in paragraph 8, subparagraph (a), of this Article does not give utmost consideration to their comments provided pursuant to pursuant to paragraph 1 or the opinion provided pursuant to paragraph 2 or 3, the Member State where the investment is planned or completed shall organise a meeting to explain the obstacles encountered or the reasons for disagreement and shall endeavour to identify solutions, should a similar situation arise in the future. Where the screening decision concerns a multi-country notification, the other Member States who notified the foreign investment to the cooperation mechanism shall also be invited. The Commission shall be invited to any meetings organised pursuant to this paragraph.

9. Where the Member States or the Commission indicate that the screening decision referred to in paragraph 8, subparagraph (a), of this Article does not give utmost consideration to their comments provided pursuant to pursuant to paragraph 1 or the opinion provided pursuant to paragraph 2 or 3, the Member State where the investment is planned or completed shall organise a meeting to explain the obstacles encountered or the reasons for disagreement and shall endeavour to identify solutions, should a similar situation arise in the future. Where the screening decision concerns a multi-country notification, the other Member States who notified the foreign investment to the cooperation mechanism shall also be invited. The Commission shall be invited to any meetings organised pursuant to this paragraph. If the Commission decides that its opinions have still not been given the utmost consideration, and that security or public order of the Union could be significantly affected, it may issue another opinion with recommendations as to how to address the identified risks.

Amendment 44

Proposal for a regulation

Article 7 – paragraph 11

Text proposed by the Commission

Amendment

11. When issuing comments or an opinion pursuant to this Article, the Member States, and the Commission, as the case may be, shall consider whether such comments or opinion should be classified information and what level of classification should apply thereto, in accordance with Union and the respective national law on classified information.

11. When issuing comments or an opinion pursuant to this Article, the Member States, the Commission, and, as the case my be, the European Central Bank, the responsible European Supervisory Authority or the Single Supervisory Mechanism shall consider whether such comments or opinion should be classified information and what level of classification should apply thereto, in accordance with Union and the respective national law on classified information.

Amendment 45

Proposal for a regulation

Article 8 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b) the Commission shall inform the notifying Member State via the secure and encrypted system referred to in Article 12(4) that it reserves its right to issue an opinion no later than 20 calendar days following the receipt of the notification pursuant to Article 5.

(b) the Commission, or, where applicable, the European Central Bank, the responsible European Supervisory Authority or the Single Supervisory Mechanism, shall inform the notifying Member State via the secure and encrypted system referred to in Article 12(4) that it reserves its right to issue an opinion no later than 20 calendar days following the receipt of the notification pursuant to Article 5.

Amendment 46

Proposal for a regulation

Article 8 – paragraph 3 – subparagraph 1 – point a

Text proposed by the Commission

Amendment

(a) where a Member State reserves its right to issue comments on a notified foreign investment without requesting additional information from the notifying Member State, the respective comments shall be addressed to the notifying Member State via the secure and encrypted system referred to in Article 12(4) no later than 35 calendar days following receipt of the complete notification of the foreign investment;

(a) where a Member State reserves its right to issue comments on a notified foreign investment without requesting additional information from the notifying Member State, the respective comments shall be addressed to the notifying Member State via the secure and encrypted system referred to in Article 12(4) no later than 30 calendar days following receipt of the complete notification of the foreign investment;

Amendment 47

Proposal for a regulation

Article 8 – paragraph 3 – subparagraph 1 – point b a (new)

Text proposed by the Commission

Amendment

(ba) where the European Central Bank, the responsible European Supervisory Authority or the Single Supervisory Mechanism reserves its right to issue an opinion on a notified foreign investment, the respective opinion shall be addressed to the notifying Member State via the secure and encrypted system referred to in Article 12(4) no later than 30 calendar days following receipt of the complete notification of the foreign investment;

Amendment 48

Proposal for a regulation

Article 8 – paragraph 3 – subparagraph 1 – point c

Text proposed by the Commission

Amendment

(c) where a Member State reserves its right to issue comments on a notified foreign investment and requests additional information from the notifying Member State, the respective comments shall be addressed to the notifying Member State via the secure and encrypted system referred to in Article 12(4) no later than 20 calendar days following receipt of the complete additional information;

(c) where a Member State reserves its right to issue comments on a notified foreign investment and requests additional information from the notifying Member State, the respective comments shall be addressed to the notifying Member State via the secure and encrypted system referred to in Article 12(4) no later than 15 calendar days following receipt of the complete additional information;

Amendment 49

Proposal for a regulation

Article 8 – paragraph 9

Text proposed by the Commission

Amendment

9. All deadlines set out in this Article shall be suspended between 25 December and 1 January and shall resume on 2 January.

deleted

Amendment 50

Proposal for a regulation

Article 9 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall be granted at least 15 months, after the foreign investment has been completed, the right to open the procedure set out in paragraph 1, provided the respective foreign investment has not been notified to the cooperation mechanism in the meantime.

2. Member States shall be granted at least 18 months, after the foreign investment has been completed, the right to open the procedure set out in paragraph 1, provided the respective foreign investment has not been notified to the cooperation mechanism in the meantime.

Amendment 51

Proposal for a regulation

Article 9 – paragraph 3

Text proposed by the Commission

Amendment

3. The Commission may open an own initiative procedure when it considers that a foreign investment in the territory of a Member State which has not been notified to the cooperation mechanism falls under Article 7(2). Before opening the procedure, the Commission shall check that the Member State where the investment is planned or completed does not intend to notify the foreign investment to the cooperation mechanism.

3. The Commission may open an own initiative procedure when it considers that a foreign investment in the territory of a Member State which has not been notified to the cooperation mechanism falls under Article 7(2). Before opening the procedure, the Commission shall check that the Member State where the investment is planned or completed does not intend to notify the foreign investment to the cooperation mechanism. Where a foreign investment as defined in point 5 of Annex II is concerned, the Commission may consult the European Central Bank, the responsible European Supervisory Authority or the Single Supervisory Mechanism.

Amendment 52

Proposal for a regulation

Article 9 – paragraph 4

Text proposed by the Commission

Amendment

4. The Commission shall be granted at least 15 months, after the foreign investment has been completed, to open the procedure set out in paragraph 3, provided the respective foreign investment has not been notified to the cooperation mechanism in the meantime.

4. The Commission shall be granted at least 18 months after the foreign investment has been completed, to open the procedure set out in paragraph 3, provided the respective foreign investment has not been notified to the cooperation mechanism in the meantime.

Amendment 53

Proposal for a regulation

Article 9 – paragraph 7 – point a

Text proposed by the Commission

Amendment

(a) the comments by Member States or the opinion by the Commission shall be sent no later than 35 calendar days following receipt of the complete information requested pursuant to paragraph 5.

(a) the comments by Member States or the opinion by the Commission shall be sent no later than 30 calendar days following receipt of the complete information requested pursuant to paragraph 5.

Amendment 54

Proposal for a regulation

Article 10 – paragraph 7

Text proposed by the Commission

Amendment

7. If no or incomplete information is provided, the comment issued by Member States, or the opinion issued by the Commission may be based on the information available to them.

7. The comment issued by Member States, or the opinion issued by the Commission shall be based on the information available to them.

Amendment 55

Proposal for a regulation

Article 12 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States and the Commission shall ensure the confidentiality of the information they provide or receive in application of this Regulation, in accordance with national and Union law. When dealing with requests for access to documents provided or received in application of this Regulation, Member States and the Commission shall refrain from disclosing any information that would undermine the purpose of the investigations conducted pursuant to this Regulation.

2. Member States and the Commission as well as the European Central Bank, the responsible European Supervisory Authority or the Single Supervisory Mechanism shall ensure the confidentiality of the information they provide or receive in application of this Regulation, in accordance with national and Union law. When dealing with requests for access to documents provided or received in application of this Regulation, Member States and the Commission shall refrain from disclosing any information that would undermine the purpose of the investigations conducted pursuant to this Regulation.

Amendment 56

Proposal for a regulation

Article 13 – paragraph 1

Text proposed by the Commission

Amendment

1. Member States shall determine, for the purposes of taking a screening decision pursuant to Article 14 or issuing a duly motivated comment pursuant to Article 7(1) or Article 9(7), whether a foreign investment is likely to negatively affect security or public order.

1. Member States shall determine, for the purposes of taking a screening decision pursuant to Article 14 or issuing a duly justified comment pursuant to Article 7(1) or Article 9(7), whether a foreign investment is likely to negatively affect security or public order.

Amendment 57

Proposal for a regulation

Article 13 – paragraph 2

Text proposed by the Commission

Amendment

2. The Commission shall determine, for the purpose of issuing a duly motivated opinion pursuant to Article 7(2) or (3) or Article 9(7), whether it considers a foreign investment to be likely to negatively affect security or public order.

2. The Commission, taking into account the opinions issued by the European Central Bank, the European Supervisory Authorities or the Single Supervisory Mechanism pursuant to Article 7 (2a), shall determine, for the purpose of issuing a duly motivated opinion pursuant to Article 7(2) or (3) or Article 9(7), whether it considers a foreign investment to be likely to negatively affect security or public order.

Amendment 58

Proposal for a regulation

Article 13 – paragraph 3 – point e a (new)

Text proposed by the Commission

Amendment

(ea) the protection of the financial and economic stability of the Union.

Amendment 59

Proposal for a regulation

Article 13 – paragraph 4 – point c

Text proposed by the Commission

Amendment

(c) whether the foreign investor or any of its subsidiaries has already been involved in activities negatively affecting the security or public order in a Member State;

(c) whether the foreign investor or any of its subsidiaries has already been involved in activities negatively affecting the security or public order in a Member State, including to seek either preventing or obtaining the cessation, modification or adoption of a particular act by the Union or a Member State, under the scope of Regulation (EU) 2023/2675 of the European Parliament and of the Council1a, thereby interfering in the legitimate sovereign choices of the Union or a Member State;

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1a Regulation (EU) 2023/2675 of the European Parliament and of the Council of 22 November 2023 on the protection of the Union and its Member States from economic coercion by third countries (OJ L, 2023/2675, 07.12.2023, ELI: http://data.europa.eu/eli/reg/2023/2675/oj).

Amendment 60

Proposal for a regulation

Article 13 – paragraph 4 – point e

Text proposed by the Commission

Amendment

(e) whether the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of the foreign investor is likely to pursue a third country’s policy objectives, or facilitate the development of a third country’s military capabilities.

(e) whether the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of the foreign investor is likely to pursue a third country’s policy objectives detrimental to the Union's interest, or facilitate the development of a third country’s military capabilities.

Amendment 61

Proposal for a regulation

Article 14 – paragraph 1 – subparagraph 2 a (new)

Text proposed by the Commission

Amendment

The screening decision shall be timely and clearly communicated to the foreign investor, guaranteeing the possibility to seek judicial recourse against that screening decision.

Amendment 62

Proposal for a regulation

Article 18

Text proposed by the Commission

Amendment

Article 18

deleted

Evaluation

1. The Commission shall evaluate the functioning and effectiveness of this Regulation 5 years after the date of application of this Regulation and every 5 years thereafter and present a report to the European Parliament and to the Council. Member States shall be involved in this exercise and, if necessary, provide the Commission with additional information for the preparation of that report.

2. Where the report from the Commission recommends amendments to this Regulation, it may be accompanied by a legislative proposal.

Amendment 63

Proposal for a regulation

Article 18 a (new)

Text proposed by the Commission

Amendment

Article 18a

Review Clause

1. By ... [24 months from the date of application of this Regulation] and every 24 months thereafter, the Commission shall review the list of projects or programmes of Union interest set out in Annex I to this Regulation to take account of the adoption and amendment of Union law relating to projects or programmes of Union interest relevant to security or public order.

2. As part of that regular review, the Commission shall also review the list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union set out in Annex II to this Regulation to take account of changes in the circumstances relevant to the security or public order interests of the Union. In particular, those considerations shall include the following:

(a) the resilience of supply chains of particular importance for the security or public order interests of the Union;

(b) the resilience of infrastructures of particular importance for the security or public order interests of the Union;

(c) the advancement of technologies of particular importance for security or public order of the Union;

(d) the emergence of vulnerabilities in relation to access to or other forms of processing of sensitive information, including personal data to the extent they are likely to negatively affect the security or public order interests of the Union; and

(e) the emergence of a geopolitical situation of particular importance for security or public order of the Union.

3. By ... [two years from the date of application of this Regulation], the Commission shall explore and evaluate options how to increase the effectiveness of this Regulation, such as criteria that lead to an automatic determination of negative impact on security and public order, and present a corresponding legislative proposal if appropriate.

4. Where the reviews referred to in paragraph 1 and 2 of this Article conclude that an amendment to Annex I or Annex II to this Regulation is necessary, the Commission shall submit a legislative proposal to that regard.

Amendment 64

Proposal for a regulation

Article 19

Text proposed by the Commission

Amendment

Article 19

deleted

Delegated acts

1. The Commission is empowered to adopt delegated acts in accordance with Article 20 for the purposes of amending, where necessary, the list of projects or programmes of Union interest set out in Annex I to take account of the adoption and amendment of Union law relating to projects or programmes of Union interest relevant to security or public order.

2. The Commission is empowered to adopt delegated acts in accordance with Article 20 for the purposes of amending, where necessary, the list technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union set out in Annex II to take account of changes in the circumstances relevant to the security or public order interests of the Union. In particular, these considerations shall include the following:

(a) the resilience of supply chains of particular importance for the security or public order interests of the Union;

(b) the resilience of infrastructures of particular importance for the security or public order interests of the Union;

(c) the advancement of technologies of particular importance for security or public order of the Union;

(d) the emergence of vulnerabilities in relation to access to or other forms of processing of sensitive information, including personal data to the extent they are likely to negatively affect the security or public order interests of the Union; and

(e) the emergence of a geopolitical situation of particular importance for security or public order of the Union.

Justification

Amendments to the Annex should be done by the co-legislator.

Amendment 65

Proposal for a regulation

Article 20

Text proposed by the Commission

Amendment

Article 20

deleted

Exercise of the delegation

1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2. The power to adopt delegated acts shall be conferred on the Commission for an indeterminate period of time from [date of entry into force of the basic legislative act].

3. The delegation of power may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

6. A delegated act adopted pursuant to Article 19 shall enter into force only if no objection has been expressed by the European Parliament or the Council within 2 months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by 2 months on the initiative of the European Parliament or of the Council.

Justification

Amendments to the Annex should be done by the co-legislator.

Amendment 66

Proposal for a regulation

Article 23 – paragraph 1

Text proposed by the Commission

Amendment

Regulation (EU) 2019/452 is repealed with effect from [date: 15 months after entry into force].

Regulation (EU) 2019/452 is repealed with effect from ... [12 months from the date of entry into force of this Regulation].

Amendment 67

Proposal for a regulation

Article 24 – paragraph 2

Text proposed by the Commission

Amendment

It shall apply from [date: 15 months after entry into force].

It shall apply from ... [12 months from the date of entry into force of this Regulation].

Amendment 68

Proposal for a regulation

Annex I – point 20 a (new)

Text proposed by the Commission

Amendment

20a. Critical Raw Materials Act (CRMA) Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024 establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020 (OJ L, 2024/1252, 3.5.2024, ELI: http://data.europa.eu/eli/reg/2024/1252/oj

Amendment 69

Proposal for a regulation

Annex II – point 5

Text proposed by the Commission

Amendment

5. The following critical entities and activities in the Union’s financial system: central counterparties2 , payment systems and payment institutions3 , electronic money institutions4 , market operators and investment firms that operate a multilateral trading facility or an organised trading facility5 , central securities depositories6 , significant issuers of asset-referenced tokens or e-money tokens and crypto asset service providers operating trading platforms for crypto-assets7 , large institutions8 , global providers of specialised financial messaging services and designated critical ICT third-party service providers9 .

5. The following critical entities and activities in the Union’s financial system:

(a) central counterparties or CCPs as defined in Article 2, point (1), of Regulation (EU) No 648/2012;

(b) payment systems and payment institutions as defined in Article 4, points (7) and (4) respectively, of Directive (EU) 2015/2366 of the European Parliament and of the Council3;

(c) electronic money institutions as defined in Article 2, point (1), of Directive 2009/110/EC of the European Parliament and of the Council4;

(d) market operators as defined in Article 4(1), point (18), of Directive 2014/65/EU of the European Parliament and of the Council5 and investment firms that operate a multilateral trading facility or an organised trading facility;

(e) central securities depositories as defined in Article 2(1), point (1), of Regulation (EU) No 909/2014 of the European Parliament and of the Council6;

(f) issuers of significant asset-referenced tokens or significant e-money tokens and crypto asset service providers operating trading platforms for crypto-assets as defined in Article 3(1), points (10), (6), (7), (15) and (18), respectively of Regulation (EU) 2023/1114 of the European Parliament and of the Council7;

(g) large institutions as defined in Article 4(1), point (146), of Regulation (EU) No 575/2013 of the European Parliament and of the Council8;

(h) global providers of specialised financial messaging services, designated critical ICT third-party service providers as defined in Article 3, point (23), of Regulation (EU) 2022/2554 of the European Parliament and of the Council9;

(i) systemically important payment systems pursuant to an ECB decision based on Article 1(2) of Regulation(EU) No 795/2014 of the European Central Bank9a;

(j) insurance undertakings and reinsurance undertakings as defined in Article 13 points (1) and (4) of Directive 2009/138/EC of the European Parliament and of the Council9b with gross written premium income exceeding EUR 25 000 000 000 on average in the three calendar years prior to the year that the foreign investment has been notified;

__________________

____________

2 Article 2(1) of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p.1, ELI: http://data.europa.eu/eli/reg/2012/648/oj.

3 Article 4(7) and Art 4(4)of Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35, ELI: http://data.europa.eu/eli/dir/2015/2366/oj .

3 Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35, ELI: http://data.europa.eu/eli/dir/2015/2366/oj).

4 Article 2(1) of Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ L 267, 10.10.2009, p.7, ELI: http://data.europa.eu/eli/dir/2009/110/oj.

4 Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ L 267, 10.10.2009, p. 7, ELI: http://data.europa.eu/eli/dir/2009/110/oj).

5 Article 4(1)(18) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349, ELI: http://data.europa.eu/eli/dir/2014/65/oj.

5 Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU(OJ L 173, 12.6.2014, p. 349, ELI: http://data.europa.eu/eli/dir/2014/65/oj).

6 Article 2(1)(1) of Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (OJ L 257, 28.8.2014, p.1, ELI: http://data.europa.eu/eli/reg/2014/909/oj.

6 Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (OJ L 257, 28.8.2014, p. 1, ELI: http://data.europa.eu/eli/reg/2014/909/oj)

7 Articles 3(1)(6), 3(1)(7) and 3(1)(10), 3(1)(15) and Article 3(1)(18) of Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (OJ L 150, 9.6.2023, p.40, ELI: http://data.europa.eu/eli/reg/2023/1114/oj.

7 Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (OJ L 150, 9.6.2023, p. 40, ELI: http://data.europa.eu/eli/reg/2023/1114/oj).

8 Article 4(1)(146) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p.1, ELI: http://data.europa.eu/eli/reg/2013/575/oj.

8 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012 (OJ L 176, 27/06/2013, p. 1, ELI: http://data.europa.eu/eli/reg/2013/575/oj).

9 Article 3(23) of Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022 on digital operational resilience for the financial sector and amending Regulations (EC) No 1060/2009, (EU) No 648/2012, (EU) No 600/2014, (EU) No 909/2014 and (EU) 2016/1011 (OJ L 333, 27.12.2022, p.1, ELI: http://data.europa.eu/eli/reg/2022/2554/oj.

9 Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022 on digital operational resilience for the financial sector and amending Regulations (EC) No 1060/2009, (EU) No 648/2012, (EU) No 600/2014, (EU) No 909/2014 and (EU) 2016/1011 (OJ L 333, 27.12.2022, p. 1, ELI: http://data.europa.eu/eli/reg/2022/2554/oj).

9a Regulation of the European Central Bank (EU) No 795/2014 of 3 July 2014 on oversight requirements for systemically important payment systems (OJ L 217, 23.7.2014, p. 16, ELI: http://data.europa.eu/eli/reg/2014/795/oj).

9b Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009, p. 1, ELI: http://data.europa.eu/eli/dir/2009/138/oj).

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR FOR THE OPINION HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for the opinion received input from the following entities or persons in the preparation of the opinion, prior to the adoption thereof in committee:

Entity and/or person

Insurance Europe

German Federal Ministry of Finance

Committee of the Regions

European Commission

American Chamber of Commerce to the European Union

European Sea Ports Organisation

GE Aerospace

Airbus SAS

UNIFE - The European Rail Supply Industry Association

The list above is drawn up under the exclusive responsibility of the rapporteur for opinion.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for opinion declares that he has submitted to the natural persons concerned the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

/

The rapporteur for opinion declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

The screening of foreign investments in the Union and repealing Regulation (EU) 2019/452 of the European Parliament and of the Council

References

COM(2024)0023 – C9-0011/2024 – 2024/0017(COD)

Committee(s) responsible

INTA

Opinion by

Date announced in plenary

ECON

25.4.2024

Rapporteur for the opinion

Date appointed

Markus Ferber

12.9.2024

Discussed in committee

16.1.2025

Date adopted

29.1.2025

Result of final vote

+:

–:

0:

40

6

2

Members present for the final vote

Francisco Assis, René Aust, Stefan Berger, Gilles Boyer, Fabio De Masi, Engin Eroglu, Markus Ferber, Jonás Fernández, Claire Fita, Dirk Gotink, Enikő Győri, Eero Heinäluoma, Billy Kelleher, Tomáš Kubín, Aurore Lalucq, Rada Laykova, Jorge Martín Frías, Fernando Navarrete Rojas, Denis Nesci, Luděk Niedermayer, Ľudovít Ódor, Fidias Panayiotou, Gaetano Pedulla’, Lídia Pereira, Kira Marie Peter-Hansen, Pierre Pimpie, Jaroslava Pokorná Jermanová, Friedrich Pürner, Jussi Saramo, Paulius Saudargas, Ralf Seekatz, Irene Tinagli, Marie Toussaint, Pasquale Tridico, Anouk Van Brug, Stéphanie Yon-Courtin

Substitutes present for the final vote

Manon Aubry, Giovanni Crosetto, Regina Doherty, Matthias Ecke, Bruno Gonçalves, Arba Kokalari

Members under Rule 216(7) present for the final vote

Mika Aaltola, Sakis Arnaoutoglou, Eleonora Meleti, Elena Nevado del Campo, Manuela Ripa, Lara Wolters

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

Key to symbols:

24.2.2025

OPINION OF THE COMMITTEE ON INDUSTRY, RESEARCH AND ENERGY

for the Committee on International Trade

on the proposal for a regulation of the European Parliament and of the Council on the screening of foreign investments in the Union and repealing Regulation (EU) 2019/452 of the European Parliament and of the Council

(COM(2024)0023 – C90011/2024 – 2024/0017(COD))

Rapporteur for opinion: Borys Budka

AMENDMENTS

The Committee on Industry, Research and Energy submits the following to the Committee on International Trade, as the committee responsible:

Amendment 1

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

(8) A significant majority of Member States, but not all, have a legislative instrument in place that provides for a mechanism to screen FDIs. In many Member States, national laws also extend to screening intra-Union investments. Among the Member States, there are substantial differences as to the scope, thresholds and criteria used to assess whether an investment is likely to negatively affect security or public order. There are also differences in the screening processes. In certain Member States, the investment can be implemented before having received clearance with respect to the impact on security and public order. However, others require that the investment is only finalised after authorisation under the screening mechanism. Such divergences create a problem for the smooth functioning of the internal market. For example, they create an uneven playing field and increase compliance costs for investors seeking to notify transactions in more than one Member State. This Regulation helps in reducing divergences on key elements of the mechanisms implemented at national level. This is crucial to ensure predictability for investors on the applicable national regimes and their characteristics, thereby reducing the associated compliance costs. This is all the more relevant considering the level of integration of internal market, which may result in a single transaction impacting multiple Member States across the Union. It is for example possible that a transaction aimed to the acquisition of a target company in one Member State also affects security and public order in another Member State, due to the supply chain structure or other economic elements connecting the target with other companies based in a different Member States. In order to address these internal market problems and ensure greater consistency and predictability, it is appropriate that the criteria and elements to be used for the assessment of foreign investments are established through Union action.

(8) A significant majority of Member States, but not all, have a legislative instrument in place that provides for a mechanism to screen FDIs. In many Member States, national laws also extend to screening intra-Union investments. Among the Member States, there are substantial differences as to the scope, thresholds and criteria used to assess whether an investment is likely to negatively affect security or public order. There are also differences in the screening processes. In certain Member States, the investment can be implemented before having received clearance with respect to the impact on security and public order. However, others require that the investment is only finalised after authorisation under the screening mechanism. Such divergences create a problem for the smooth functioning of the internal market. For example, they create an uneven playing field and increase compliance costs for investors seeking to notify transactions in more than one Member State. This Regulation helps in reducing divergences on key elements of the mechanisms implemented at national level. This is crucial to ensure predictability for investors on the applicable national regimes and their characteristics, thereby reducing the associated compliance costs. This is all the more relevant considering the level of integration of internal market, which may result in a single transaction impacting multiple Member States across the Union. It is for example possible that a transaction aimed to the acquisition of a target company in one Member State also affects security and public order in another Member State, due to the supply chain structure or other economic elements connecting the target with other companies based in a different Member States. In order to address these internal market problems and ensure greater consistency and predictability, it is appropriate that the criteria and elements to be used for the assessment of foreign investments are established through Union action. This Regulation should be based on the criterion that there is the probability of a serious threat to the security or public order, and should be appropriate and necessary, including but not limited to the case-law of the Court of Justice of the European Union (Court of Justice).

Amendment 2

Proposal for a regulation

Recital 9 a (new)

Text proposed by the Commission

Amendment

(9a) In order to ensure more efficient management of the screening mechanisms at Union level, when an investor has already undergone a screening process or assessment in accordance with the legislation of a Member State, any additional request for information from the Commission or another Member State should be duly justified so as to avoid any unnecessary duplication of information.

Amendment 3

Proposal for a regulation

Recital 10

Text proposed by the Commission

Amendment

(10) Regulation (EU) 2019/452 only covers FDIs made from third countries into the Union. However, it is also necessary to extend the scope of the cooperation mechanism to investments made between Member States, where the investor in one Member State is controlled, directly or indirectly, by a foreign entity regardless of whether the ultimate owner is located in the Union or elsewhere. In particular, this extended scope is appropriate to ensure that any investment creating a lasting link between the foreign investor and the Union target, whether it is carried out directly by a foreign investor or through an entity established in the Union and controlled by a foreign investor, is consistently captured and assessed. This should foster the consistency and predictability of screening rules across Member States, which in turn will reduce compliance costs for foreign investors and limit incentives to target an investment in Member States where such transactions are out of scope.

(10) Regulation (EU) 2019/452 only covers FDIs made from third countries into the Union. On that basis, a distinction should be made between investments made within the Union where the Union entity is controlled by an ultimate owner located in a third country and those where the ultimate owner is not located in a third country. It is particularly important for the risk assessment to take into consideration whether the ultimate owner has decision-making power on the investment. The assessment should also maintain sufficient flexibility to make it possible to take into consideration the specific character and structure of investments within the Union carried out by foreign investors.

Amendment 4

Proposal for a regulation

Recital 13 a (new)

Text proposed by the Commission

Amendment

(13a) A notification is needed if a foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of, was directly or majoritarily controlled by individuals or entities included in the Union's sanctions lists adopted in response to Russia’s military aggression against Ukraine and as referred to in the successive sanctions packages and relevant restrictive measures.

Amendment 5

Proposal for a regulation

Recital 16

Text proposed by the Commission

Amendment

(16) Foreign investments that create or maintain lasting and direct links between investors from third countries (including state bodies) and Union targets carrying out an economic activity in a Member State should fall within the scope of this Regulation. This should apply where those investments are directly carried out from third countries or by a Union entity with foreign control. However, the framework should not cover the acquisition of company securities intended purely for financial investment without any intention to influence the management and control of the undertaking (portfolio investments). Restructuring operations within a group of companies or a merger of more than one legal entities into a single legal entity do not constitute a foreign investment, provided that there is no increase in the shares held by foreign investors, or the transaction does not result in additional rights that may lead to a change in the effective participation of one or more foreign investors in the management or control of a Union target.

(16) Foreign investments that create or maintain lasting and direct links between investors from third countries (including state bodies) and Union targets carrying out an economic activity in a Member State should fall within the scope of this Regulation. This should apply where those investments are directly carried out from third countries or by a Union entity with foreign control. However, the framework should not cover the acquisition of company securities intended purely for financial investment that does not confer the possibility of exercising decisive influence on a Union target. Restructuring operations within a group of companies or a merger of multiple legal entities into a single legal entity do not constitute a foreign investment, provided such operations do not result in the possibility to use all or part of the assets of the Union target or the possibility to exercise decisive influence on the composition or decisions of the organs of the Union target. Furthermore, investments made by undertakings whose direct investment entities are European managers of qualified collective investments funds should not fall within the scope of this Regulation.

Amendment 6

Proposal for a regulation

Recital 18

Text proposed by the Commission

Amendment

(18) To ensure consistent and predictable screening processes, it is appropriate to lay down the essential features of the screening mechanisms to be implemented by Member States. Those features should at least include the scope of the transactions to be subject to an authorisation requirement, deadlines for the screening and the possibility for undertakings concerned by the screening decision to seek recourse against such decisions. Rules and procedures relating to screening mechanisms should be transparent and should not discriminate between third countries.

(18) To ensure consistent and predictable screening processes, it is appropriate to lay down the essential features of the screening mechanisms to be implemented by Member States. Those features should at least include the scope of the transactions to be subject to an authorisation requirement, deadlines for the screening and the possibility for undertakings concerned by the screening decision to seek recourse against such decisions. Appropriate tools, together with sufficient resources, should be provided to the screening authority to effectively implement such screening processes. Rules and procedures relating to screening mechanisms should be transparent, causing minimal administrative burden, avoiding undue delays for the applicants, and should not discriminate between third countries.

Amendment 7

Proposal for a regulation

Recital 20

Text proposed by the Commission

Amendment

(20) To ensure that foreign investments likely to negatively affect security or public order in the Union are adequately identified, Member States should screen foreign investments where the Union target is part of or participates in a project or programme of Union interest or where the Union target’s economic activity relates to a technology, asset, facility, equipment, network, system or service of particular importance for the security or public order interests of the Union. In addition to these criteria, screening mechanisms may apply to other sectors, Union targets or economic activities that the relevant Member State considers critical for its security or public order.

(20) To ensure that foreign investments likely to negatively affect security or public order in the Union are adequately identified in accordance with, but not limited to, the case-law of the Court of Justice, Member States should screen foreign investments where the Union target is part of or participates in a project or programme of Union interest or where the Union target’s economic activity relates to a technology, asset, facility, equipment, network, system or service of particular importance for the security or public order interests of the Union. In addition to these criteria, screening mechanisms may apply to other sectors, Union targets or economic activities that the relevant Member State considers critical for its security or public order.

Amendment 8

Proposal for a regulation

Recital 21

Text proposed by the Commission

Amendment

(21) To ensure that the cooperation mechanism focuses only on those foreign investments where the characteristics of the foreign investor or the Union target make an effect on security or public order likely, it is appropriate to establish risk-based conditions for the notification of foreign investments undergoing screening in a Member State to the other Member States and the Commission. Where a foreign investment does not meet any of the conditions, the Member State where the foreign investment is undergoing screening may notify the foreign investment to the other Member States and the Commission, including where the Union target has significant operations in other Member States, or belongs to a corporate group that has several companies in different Member States.

(21) To ensure that the cooperation mechanism focuses only on those foreign investments where the characteristics of the foreign investor or the Union target make an effect on security or public order likely, it is essential to establish risk-based conditions for the notification of foreign investments undergoing screening in a Member State to the other Member States and the Commission. Where a foreign investment does not meet any of the conditions, the Member State where the foreign investment is undergoing screening may notify the foreign investment to the other Member States and the Commission, including where the Union target has significant operations in other Member States, or belongs to a corporate group that has several companies in different Member States. Furthermore, in cases where the ownership structure is opaque or unclear, the investment should be notified as a precaution. An opaque ownership structure refers to cases where the ultimate beneficial owner is obscured by layers of indirect ownership such as multilevel indirect shareholding. The beneficial owner in this case is any natural person who ultimately owns or controls a legal entity or similar legal arrangement.

Amendment 9

Proposal for a regulation

Recital 25

Text proposed by the Commission

Amendment

(25) Furthermore, it should be possible for the Commission to adopt an opinion addressed to all Member States if it identifies several foreign investments that, taken together, are likely to impact the security or public order of the Union. This could notably be the case where several foreign investments present comparable characteristics. These include where the foreign investments are made by the same foreign investor, or foreign investors presenting similar risks, or where several foreign investments concern the same target or the same infrastructure, including trans-European infrastructure for transport, energy and communication. Member States and the Commission should discuss the risk analysis and the possible ways to address the risks identified in the opinion.

(25) Furthermore, it should be possible for the Commission to adopt an opinion addressed to all Member States if it identifies several foreign investments that, taken together, are likely to impact the security or public order of the Union. This could notably be the case where several foreign investments present comparable characteristics. These include where the foreign investments are made by the same foreign investor, or foreign investors presenting similar risks, or where several foreign investments concern the same target or the same infrastructure, including trans-European infrastructure for transport, energy and communication and where the detection of such aggregated investments raises security concerns related to specific items, entities, or economic activities of particular importance to the security or public order interests of the Union. Member States and the Commission should discuss the risk analysis and the possible ways to address the risks identified in the opinion.

Amendment 10

Proposal for a regulation

Recital 26

Text proposed by the Commission

Amendment

(26) To protect security or public order while providing greater certainty to investors, Member States should have the possibility to make comments and the Commission should have the possibility to issue an opinion on foreign investments that have been completed but not notified up to 15 months after the completion of the foreign investment.

(26) To protect security or public order while providing greater certainty to investors, Member States should have the possibility to make comments and the Commission should have the possibility to issue an opinion on foreign investments that have been completed but not notified up to 36 months after the completion of the foreign investment.

Amendment 11

Proposal for a regulation

Recital 28

Text proposed by the Commission

Amendment

(28) In order to ensure that the likely effect of a foreign investment on the security or public order of one or more Member States is adequately addressed, Member States receiving duly justified comments from other Member States or an opinion from the Commission should give such comments or opinion utmost consideration, including where it considers that its own security or public order is not affected. The Member State should coordinate with the Commission and the Member States concerned if necessary and provide them with written feedback on the decision taken and how the comments and the opinion have been given utmost consideration. The final decision on foreign investments should remain the sole responsibility of the Member State where the foreign investment is planned or completed.

(28) In order to ensure that the likely effect of a foreign investment on the security or public order of one or more Member States is adequately addressed, Member States receiving duly justified comments from other Member States or an opinion from the Commission should give such comments or opinion utmost consideration, including where it considers that its own security or public order is not affected. The Member State should coordinate with the Commission and the Member States concerned if necessary and provide them with written feedback on the decision taken and how the comments and the opinion have been given utmost consideration. The Commission should have the appropriate technical and human resources, as well as the financial resources, to procure commercial business intelligence from private vendors. If the Commission considers that its opinion has not been given utmost consideration, and that security or public order of the Union can be significantly affected, it may issue a follow-up opinion stipulating recommendations to address the risks.

Amendment 12

Proposal for a regulation

Recital 29

Text proposed by the Commission

Amendment

(29) To ensure the effective functioning of the cooperation mechanism, it is important to require that the Member State notifying the foreign investment to the cooperation mechanism provides a minimum level of information in a standardised format. Where the cooperation concerns a foreign investment not notified to the cooperation mechanism, the Member State where the foreign investment is planned or has been completed should be able to provide at least the same minimum level of information. The Commission and Member States may seek additional information from the Member State where the foreign investment is planned or completed. Such request for additional information should be duly justified, limited to the information necessary for the Member States to provide comments or for the Commission to issue an opinion, proportionate to the purpose of the request and not unduly burdensome for the notifying Member State.

(29) To ensure the effective functioning of the cooperation mechanism, it is important to require that the Member State notifying the foreign investment to the cooperation mechanism provides a minimum level of information in a standardised format. Where the cooperation concerns a foreign investment not notified to the cooperation mechanism, the Member State where the foreign investment is planned or has been completed should be able to provide at least the same minimum level of information. The Commission and Member States may seek additional information from the Member State where the foreign investment is planned or completed. Such request for additional information should be duly justified, limited to the information necessary for the Member States to provide comments or for the Commission to issue an opinion, proportionate to the purpose of the request and not unduly burdensome for the notifying Member State. To protect security or public order, information provided should clearly state whether the foreign investment is subject to restrictive measures pursuant to Article 215 TFEU, previous screening history and any economic activity in items listed in Annex I to Regulation (EU) 2021/821 of the European Parliament and of the Council1a or Council Common Position 2008/944/CFSP1b.

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1a Regulation (EU) 2021/821 of the European Parliament and of the Council of 20 May 2021 setting up a Union regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items (OJ L 206, 11.6.2021, p. 1).

1b Council Common Position 2008/944/CFSP of 8 December 2008 defining common rules governing control of exports of military technology and equipment (OJ L 335 13.12.2008, p. 99).

Amendment 13

Proposal for a regulation

Recital 34

Text proposed by the Commission

Amendment

(34) To ensure the efficiency and effectiveness of the cooperation mechanism, it is necessary to align deadlines and procedures when several foreign investments linked to the same broader transaction are screened in several Member States. In such multi-country transactions, the applicant should file the different requests for authorisation in the Member States concerned simultaneously. In addition, those Member States should notify the requests simultaneously to the cooperation mechanism. To ensure an efficient handling of these multi-country transactions, the Member States concerned should coordinate and agree on whether the foreign investments are notifiable and when they should be notified. Furthermore, the Member States concerned should also coordinate on the final decision. If the Member States concerned intend to authorise the foreign investment with conditions, they should ensure that these conditions are compatible with one another and address cross-border risks adequately. Before prohibiting a foreign investment, the Member States concerned should consider whether a conditional authorisation with coordinated measures and their coordinated enforcement is not sufficient to address the likely effect on security or public order. The Commission should be able to participate in such coordination.

(34) To ensure the efficiency and effectiveness of the cooperation mechanism, it is necessary to align deadlines, documents required and procedures when several foreign investments linked to the same broader transaction are screened in several Member States. In such multi-country transactions, the applicant should file the different requests for authorisation in the Member States concerned simultaneously. In addition, those Member States should notify the requests simultaneously to the cooperation mechanism. To ensure an efficient handling of these multi-country transactions, the Member States concerned should coordinate and agree on whether the foreign investments are notifiable and when they should be notified. Furthermore, the Member States concerned should also coordinate on the final decision. If the Member States concerned intend to authorise the foreign investment with conditions, they should ensure that these conditions are compatible with one another and address cross-border risks adequately. Before prohibiting a foreign investment, the Member States concerned should consider whether a conditional authorisation with coordinated measures and their coordinated enforcement is not sufficient to address the likely effect on security or public order in accordance with, but not limited to, the case-law of the Court of Justice. The Commission should be able to participate in such coordination.

Amendment 14

Proposal for a regulation

Recital 34 a (new)

Text proposed by the Commission

Amendment

(34a) To ensure transparency and efficiency in the cooperation mechanism, it is essential for Member States to provide complete additional information requested by the Commission or other Member States within a reasonable timeframe. Member States should comply with such requests without undue delay and in any event no later than 180 days from the date of the request, using the secure and encrypted system established under this Regulation. Furthermore, when providing additional information to another Member State, the notifying Member State should simultaneously send such additional information to the Commission to maintain consistency and facilitate effective coordination.

Amendment 15

Proposal for a regulation

Recital 35

Text proposed by the Commission

Amendment

(35) To ensure a consistent approach to the screening of investments across the Union, it is essential that the standards and criteria used to assess likely risks to security and public order are those set at Union level in this Regulation. Those should include the impact on the security, integrity and functioning of critical infrastructure, the availability of critical technologies (including key enabling technologies) and the continued supply of critical inputs for security or public order, the disruption, failure, loss or destruction of which would have a significant impact on security and public order in one or more Member States or on the Union as a whole. In that regard, Member States and the Commission should also take into account the context and circumstances of the foreign investment. This should include, in particular, whether an investor is controlled directly or indirectly, for example through significant funding, by the government of a third country or is involved in pursuing policy objectives of third countries to facilitate their military capabilities. In this context, if applicable, Member States and the Commission should also consider why the foreign investor, its beneficial owner or any of its subsidiaries or a person acting on behalf or at the direction of such a foreign investor is subject to any type of Union restrictive measures pursuant to Article 215 TFEU.

(35) To ensure a consistent approach to the screening of investments across the Union, it is essential that the standards and criteria used to assess likely risks to security and public order are those set at Union level in this Regulation. Those should include the impact on the security, integrity and functioning of critical infrastructure, the availability of critical technologies (including key enabling technologies) and the continued supply of critical inputs for security or public order, the disruption, failure, loss or destruction of which would have a significant impact on security and public order in one or more Member States or on the Union as a whole. In that regard, Member States and the Commission should also take into account the context and circumstances of the foreign investment. This should include, in particular, whether an investor is controlled directly or indirectly, for example through significant funding, by the government of a third country or is involved in pursuing policy objectives of third countries to facilitate their military capabilities. In this context, if applicable, Member States and the Commission should also consider why the foreign investor, its beneficial owner or any of its subsidiaries or a person acting on behalf or at the direction of such a foreign investor is subject to any type of Union restrictive measures pursuant to Article 215 TFEU. To facilitate that process, common and simple administrative procedures should be put in place, and the process should strive to maintain a welcoming investment environment, while ensuring Union security interests, fully compatible with Union law and international commitments.

Amendment 16

Proposal for a regulation

Recital 36

Text proposed by the Commission

Amendment

(36) Where the Member State where the foreign investment is planned or completed considers that a foreign investment is likely to negatively affect security or public order in the Union, it is appropriate to require that Member State to take appropriate measures to mitigate the risks, where such measures are available, and it considers them adequate, taking into utmost consideration the comments issued by other Member States and the opinion issued by the Commission, if applicable. Foreign investments should be prohibited only on an exceptional basis, and where mitigating measures or measures available under Union or national law other than the screening mechanism are not sufficient to mitigate the effect on security or public order.

(36) Where the Member State where the foreign investment is planned or completed considers that a foreign investment is likely to negatively affect security or public order in the Union, it is appropriate to require that Member State to take appropriate measures to mitigate the risks, where such measures are available, and it considers them adequate, reasonably considering the comments issued by other Member States and the opinion issued by the Commission, if applicable. Foreign investments should be prohibited only on an exceptional basis, and where mitigating measures or measures available under Union or national law other than the screening mechanism are not sufficient to mitigate the effect on security or public order or that compliance with mitigation measures is insufficient.

Amendment 17

Proposal for a regulation

Recital 43

Text proposed by the Commission

Amendment

(43) The Commission should draw up an annual report on the implementation of this Regulation and submit it to the European Parliament and to the Council. For greater transparency, the report should be made public. The report should be based on, among other things, reports submitted by all Member States to the Commission on a confidential basis with due respect to the need to ensure the protection of the confidentiality of certain information, in particular where the publication of data could affect the security or public order of the Union or jeopardise commercial confidentiality.

(43) The Commission should draw up an annual report on the implementation of this Regulation and submit it to the European Parliament and to the Council. For greater transparency, the report should be made public. The report should be based on, among other things, reports submitted by all Member States to the Commission on a confidential basis with due respect to the need to ensure the protection of the confidentiality of certain information, in particular where the publication of data could affect the security or public order of the Union or jeopardise commercial confidentiality. The protection of trade secrets, as defined in Article 2, point (1), of Directive (EU) 2016/943 of the European Parliament and of the Council1a, should be ensured throughout the screening process. Member States and the Commission should adopt measures to handle such information with the highest standards of confidentiality, preventing unauthorised disclosure while ensuring that the screening process is not obstructed by claims of confidentiality designed to evade legitimate scrutiny.

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1a Directive (EU) 2016/943 of the European Parliament and of the Council of 8 June 2016 on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure (OJ L 157, 15.6.2016, p. 1, ELI: http://data.europa.eu/eli/dir/2016/943/oj).

Amendment 18

Proposal for a regulation

Recital 49

Text proposed by the Commission

Amendment

(49) In order to take into account developments relating to projects or programmes of Union interest and to adapt the list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amendments to the Annexes to this Regulation. The list of projects and programmes of Union interest set out in Annex I should cover projects or programmes covered by EU law which provide for the development, maintenance or acquisition of critical infrastructure, critical technologies or critical inputs which are essential for security or public order. The list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union set out in Annex II should include areas where a foreign investment may affect security or public order in more than one Member State or in the Union as a whole through an Union target, which does not participate in or receive funds from a project or programme of Union interest. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making16. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(49) In order to take into account developments relating to projects or programmes of Union interest and to adapt the list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amendments to the Annexes to this Regulation. The list of projects and programmes of Union interest set out in Annex I should cover projects or programmes covered by EU law which provide for the development, maintenance or acquisition of critical infrastructure, critical technologies or critical inputs which are essential for security or public order. The list of items and entities of particular importance for the security or public order interests of the Union set out in Annex II should include areas where a foreign investment may affect security or public order in more than one Member State or in the Union as a whole through an Union target, which does not participate in or receive funds from a project or programme of Union interest. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making16. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

_________________

16 OJ L 123, 12.5.2016, p. 1.

Amendment 19

Proposal for a regulation

Article 2 – paragraph 1 – point 1

Text proposed by the Commission

Amendment

(1) ‘foreign investment’ means a foreign direct investment or an investment within the Union with foreign control, which enables effective participation in the management or control of a Union target;

(1) ‘foreign investment’ means a foreign direct investment or an investment within the Union with foreign control, which enables the possibility to exercise decisive influence on a Union target including but not limited to management control, voting rights, board representation, or strategic decision-making power over a Union target from the investor’s side pursuant to Article 20(5) of Regulation (EU) 2022/2560 of the European Parliament and of the Council1a and Article 3(2) of Council Regulation (EC) No 139/20041b, except those made by undertakings whose direct investment entities are European managers of qualified collective investment funds;

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1a Regulation (EU) 2022/2560 of the European Parliament and of the Council of 14 December 2022 on foreign subsidies distorting the internal market (OJ L 330, 23.12.2022, p. 1).

1b Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (OJ L 24, 29.1.2004, p. 1).

Amendment 20

Proposal for a regulation

Article 2 – paragraph 1 – point 8 a (new)

Text proposed by the Commission

Amendment

(8a) ‘European managers of qualified collective investment funds’ means fund managers located in the Union whose objective is to pool capital from more than one investor, including foreign investors, in order to generate a joint return for those investors in the fund, and who are able to demonstrate at all times that none of the foreign investors has the ability to exercise decisive influence over the business decisions, nor has direct access to confidential information, including intellectual property rights or technology transfers, of the companies in which the fund has invested;

Amendment 21

Proposal for a regulation

Article 3 – paragraph 1

Text proposed by the Commission

Amendment

1. Member States shall establish a screening mechanism in accordance with this Regulation.

1. Member States shall establish or maintain a screening mechanism that fulfils at least the requirements set out in this Regulation.

Amendment 22

Proposal for a regulation

Article 3 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall ensure that the screening mechanism referred to in paragraph 1 applies at least to investments subject to an authorisation requirement pursuant to Article 4(4).

2. Member States shall ensure without exception that the screening mechanism referred to in paragraph 1 applies at least to investments subject to an authorisation requirement pursuant to Article 4(4).

Amendment 23

Proposal for a regulation

Article 4 – paragraph 2 – point a

Text proposed by the Commission

Amendment

(a) adequate procedures shall be provided for the screening authority to determine whether it has jurisdiction over a foreign investment filed for authorisation and to carry out an initial review followed by, where necessary, an in-depth investigation to determine whether that foreign investment is likely to negatively affect security or public order. The purpose of the in-depth investigation shall be, in particular, to determine whether a screening decision as referred to in Article 14(1) is appropriate and to determine its content.

(a) adequate resources and procedures shall be provided for the screening authority to determine whether it has jurisdiction over a foreign investment filed for authorisation and to carry out an initial review followed by, where necessary, an in-depth investigation to determine whether that foreign investment is likely to negatively affect security or public order, taking into account at least the criteria laid down in Article 13 and also, but not exclusively, based on the case-law of the Court of Justice of the European Union (Court of Justice). The purpose of the in-depth investigation shall be, in particular, to determine whether a screening decision as referred to in Article 14(1) is appropriate and to determine its content.

Amendment 24

Proposal for a regulation

Article 4 – paragraph 2 – point a a (new)

Text proposed by the Commission

Amendment

(aa) Member States shall require mandatory notification of foreign investments which enable the possibility for the investor to exercise decisive influence on a Union target pursuant to Article 20(5) of Regulation (EU) 2022/2560 and Article 3(2) of Regulation (EC) No 139/2004 when covered by Annex II of this Regulation; this Regulation does not impose obligation on Member States to require mandatory notification of minority investments, short-term investments, or restructuring operations within a group of companies, unless such operations result in foreign control or influence over strategic decisions of the target company or its subsidiaries; nor are they obliged to require notification of mergers between legal entities unless the resulting entity would enable foreign control or be able to exercise decisive influence;

Amendment 25

Proposal for a regulation

Article 4 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b) the screening authority shall monitor and ensure compliance with the screening mechanism and screening decisions. In particular, it shall put in place adequate procedures to identify and prevent circumvention of the screening mechanism and screening decisions;

(b) the screening authority shall monitor and ensure compliance with the screening mechanism and screening decisions. In particular, it shall put in place adequate resources and procedures to identify and prevent circumvention of the screening mechanism and screening decisions;

Amendment 26

Proposal for a regulation

Article 4 – paragraph 2 – point c

Text proposed by the Commission

Amendment

(c) the screening authority shall be empowered to start screening foreign investments by its own initiative for at least 15 months after the completion of a foreign investment that is not subject to an authorisation requirement where the screening authority has grounds to consider that the foreign investment may affect security or public order;

(c) the screening authority shall be empowered to start screening foreign investments by its own initiative for up to 36 months after the completion of a foreign investment that is not subject to an authorisation requirement where the screening authority has grounds to consider that the foreign investment may affect security or public order; this does not cover already screened foreign investments unless it is demonstrated that the foreign investor has provided false, misleading or incomplete information;

Amendment 27

Proposal for a regulation

Article 4 – paragraph 2 – point f

Text proposed by the Commission

Amendment

(f) an annual report shall be made public, and shall include information on relevant legislative developments in the Member State and aggregate and anonymised data on the investments screened, including the outcome of screening decisions, nationalities, or country of establishment as the case may be, of parties to the investments notified to the screening authority, and the economic sectors in which those transactions took place;

(f) an annual report shall be made public, and shall include information on relevant legislative developments in the Member State and aggregate and anonymised data on the investments screened, including the outcome of screening decisions, nationalities, or country of establishment as the case may be, of parties to the investments notified to the screening authority, and the economic sectors in which those transactions took place; the annual report shall also include yearly and three- year variations in foreign direct investment across all economic sectors in the Member State;

Amendment 28

Proposal for a regulation

Article 4 – paragraph 2 – point g

Text proposed by the Commission

Amendment

(g) foreign investments subject to an authorisation requirement as referred to in paragraph 4 shall be filed by the applicant requesting authorisation with the screening authority and shall be screened before the foreign investment is completed;

(g) foreign investments subject to an authorisation requirement as referred to in paragraph 4 shall be filed by the applicant requesting authorisation with the screening authority and shall be screened before the foreign investment is completed; the screening authority shall limit administrative burdens and undue delays for the applicant requesting authorisation;

Amendment 29

Proposal for a regulation

Article 4 – paragraph 2 – point i a (new)

Text proposed by the Commission

Amendment

(ia) the screening authority shall allow applicants to use the common European form to request an authorisation. The Commission shall develop that form by means of implementing acts pursuant to Article 21, to be adopted prior to the date of application of this Regulation referred to in Article 24(2); Member States may add additional information requests to the form based on their national procedure.

Amendment 30

Proposal for a regulation

Article 4 – paragraph 4 – introductory part

Text proposed by the Commission

Amendment

4. Member States shall ensure that their screening mechanisms impose an authorisation requirement for foreign investments where the Union target established in their territory:

4. Member States shall ensure that their screening mechanisms impose an authorisation requirement for foreign investments where the Union target established in their territory is part of or participates in one of the projects or programmes of Union interest listed in Annex I, including as a recipient as defined in Article 2, point (59), of Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council1a.

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1a Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (OJ L, 2024/2509, 26.9.2024, p. 1, ELI: http://data.europa.eu/eli/reg/2024/2509/oj ).

Amendment 31

Proposal for a regulation

Article 4 – paragraph 4 – point a

Text proposed by the Commission

Amendment

(a) is part of or participates in one of the projects or programmes of Union interest listed in Annex I, including as a recipient of funds as defined in Article 2 paragraph 53 of Regulation 2018/1046 of the European Parliament and of the Council19 , or

deleted

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19 Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1–222, ELI: http://data.europa.eu/eli/reg/2018/1046/oj).

Amendment 32

Proposal for a regulation

Article 4 – paragraph 4 – point b

Text proposed by the Commission

Amendment

(b) is economically active in one of the areas listed in Annex II.

deleted

Amendment 33

Proposal for a regulation

Article 4 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

4a. Member States shall ensure that their screening mechanisms impose an authorisation requirement for foreign investments where the Union target is established or is to be established in their territory and the Union target is economically active in one of the areas listed in Annex II.

Amendment 34

Proposal for a regulation

Article 5 – paragraph 1 – point b – point i

Text proposed by the Commission

Amendment

(i) the foreign investor or the foreign investor’s subsidiary in the Union is directly or indirectly controlled by the government, including state bodies, regional or local authorities or armed forces, of a third country, including through ownership structure, significant funding, special rights or state-appointed directors or managers;

(i) the foreign investor or the foreign investor’s subsidiary in the Union is directly or indirectly controlled by the government, including state bodies, regional or local authorities or armed forces, of a third country, including through ownership structure, significant funding, special rights or state-appointed directors or managers. In cases where the ownership structure is opaque or unclear, the investment shall be notified as a precaution;

Amendment 35

Proposal for a regulation

Article 6 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b) within 60 calendar days of receiving the request for authorisation for foreign investments meeting the conditions set out in Article 5(2).

(b) within 45 calendar days of receiving the request for authorisation for foreign investments meeting the conditions set out in Article 5(2).

Amendment 36

Proposal for a regulation

Article 6 – paragraph 1 – point b a (new)

Text proposed by the Commission

Amendment

(ba) by way of derogation from point (b) of this paragraph, in duly justified cases where the foreign investment presents substantial complexity, involves cross-border implications, or involves entities controlled by a third-country government or subject to Union restrictive measures under Article 215 TFEU, the notification period may be extended to a maximum of 60 calendar days; such an extension may also apply in cases where emerging threats or exceptional circumstances arise, necessitating further analysis or additional data collection; the Member State invoking the derogation shall communicate its justification to the Commission and the other Member States within 10 calendar days of the receipt of the initial notification.

Amendment 37

Proposal for a regulation

Article 6 – paragraph 2 – point a

Text proposed by the Commission

Amendment

(a) applicants requesting an authorisation shall file their requests for authorisation in all relevant Member States on the same day, and each request for authorisation shall make reference to the other requests;

(a) applicants requesting an authorisation shall file their requests for authorisation in all relevant Member States within 3 calendar days; the applicants shall not be required to reference in the first request other requests, however, the applicants shall in all subsequent requests make reference to the first request; the 3-day period shall begin from the date when the first request is submitted;

Amendment 38

Proposal for a regulation

Article 6 – paragraph 2 – point c

Text proposed by the Commission

Amendment

(c) if the requests for authorisation concern a foreign investment meeting any of the conditions set out in Article 5(1), the respective Member States shall send their notifications to the cooperation mechanism on the same day and within the deadline laid down in point (a) of paragraph 1 of this Article;

(c) if the requests for authorisation concern a foreign investment meeting any of the conditions set out in Article 5(1), the respective Member States shall send their notifications to the cooperation mechanism on the same day after the last Member State received its request for authorisation and within the deadline laid down in point (a) of paragraph 1 of this Article;

Amendment 39

Proposal for a regulation

Article 7 – paragraph 1 – subparagraph 1 – point a

Text proposed by the Commission

Amendment

(a) considers that a foreign investment is likely to negatively affect its security or public order; or

(a) considers that a foreign investment is likely to negatively affect its security or public order, also in accordance with, but not limited to, the case-law of the Court of Justice; or

Amendment 40

Proposal for a regulation

Article 7 – paragraph 2 – subparagraph 1 – point a

Text proposed by the Commission

Amendment

(a) it considers that such a foreign investment is likely to negatively affect the security or public order of more than one Member State;

(a) it considers that such a foreign investment is likely to negatively affect the security or public order of more than one Member State, also in accordance with, but not limited to, the case-law of the Court of Justice;

Amendment 41

Proposal for a regulation

Article 7 – paragraph 2 – subparagraph 1 – point b

Text proposed by the Commission

Amendment

(b) it considers that such a foreign investment is likely to negatively affect projects or programmes of Union interest on grounds of security or public order;

(b) it considers that such a foreign investment is likely to negatively affect projects or programmes of Union interest on grounds of security or public order, also in accordance with, but not limited to, the case-law of the Court of Justice;

Amendment 42

Proposal for a regulation

Article 7 – paragraph 3

Text proposed by the Commission

Amendment

3. The Commission may issue a duly motivated opinion addressed to all Member States if it considers that several foreign investments or other similar investments if they were to be made, taken together, and having regard to their characteristics could affect the security or public order of the Union. After a Commission opinion is issued, the Commission may, as appropriate, discuss with Member States how to address the identified risks.

3. The Commission shall issue a duly motivated opinion addressed to a Member State, a group of Member States or all Member States if it considers that a foreign investment or several similar investments if they were to be made, taken together or individually, and having regard to their characteristics could affect the security or public order of the Union, also in accordance with, but not limited to, the case-law of the Court of Justice. After a Commission opinion is issued, the Commission shall, as appropriate, discuss with Member States the actions to address the identified risks.

Amendment 43

Proposal for a regulation

Article 7 – paragraph 6

Text proposed by the Commission

Amendment

6. Following the receipt of a comment pursuant to paragraph 1, the Member State shall set up a meeting with the Member States who issued comments to discuss how to best address the risks identified. If the Member State where the foreign investment is planned or completed disagrees with the risks identified or, if applicable, the measure proposed with the comment, the Member States shall aim to identify alternative solutions. Where the comment concerns a multi-country transaction, the other Member States who notified the foreign investment shall also be invited to discuss whether the intended outcomes are compatible with one another and, where applicable, the intended conditions are able to address identified cross-border risks adequately. The Commission shall be invited to any such meetings.

6. Following the receipt of a comment pursuant to paragraph 1, the Member State shall set up a meeting with the Member States who issued comments to discuss how to best address the risks identified. If the Member State where the foreign investment is planned or completed disagrees with the risks identified or, if applicable, the measure proposed with the comment, the Member States shall identify alternative solutions. Where the comment concerns a multi-country transaction, the other Member States who notified the foreign investment shall also be invited to discuss whether the intended outcomes are compatible with one another and, where applicable, the intended conditions are able to address identified cross-border risks adequately. The Commission shall be invited to any such meetings.

Amendment 44

Proposal for a regulation

Article 7 – paragraph 8 – introductory part

Text proposed by the Commission

Amendment

8. Following the receipt of an opinion pursuant to paragraph 2 or 3, the Member State where the foreign investment is planned or completed shall:

8. Following the receipt of comments pursuant to paragraph 1 or an opinion pursuant to paragraph 2 or 3, the Member State where the foreign investment is planned or completed shall:

Amendment 45

Proposal for a regulation

Article 7 – paragraph 8 – point a

Text proposed by the Commission

Amendment

(a) notify its screening decision to the respective Member States and to the Commission via the secure and encrypted system referred to in Article 12(4) no later than 3 calendar days after it was sent to the respective parties to the foreign investment;

(a) notify to the respective Member States and to the Commission on the results of screening via the secure and encrypted system referred to in Article 12(4) no later than 5 calendar days after they were sent to the respective parties to the foreign investment;

Amendment 46

Proposal for a regulation

Article 7 – paragraph 8 – point b – introductory part

Text proposed by the Commission

Amendment

(b) provide a written explanation to the respective Member States and the Commission via the secure and encrypted system referred to in Article 12(4) no later than 7 calendar days after the screening decision was notified pursuant to paragraph (a) on:

(b) upon request of the respective Member State or the Commission, invite the respective Member State and the Commission to a meeting or provide a written explanation on the results of screening to the respective Member States and the Commission via the secure and encrypted system referred to in Article 12(4) no later than 7 calendar days following such a request. Where the screening decision concerns a multi-country notification, the other Member States which notified the foreign investment to the cooperation mechanism shall also be invited to the meeting or receive the written explanation. The written explanation shall contain:

Amendment 47

Proposal for a regulation

Article 7 – paragraph 8 a (new)

Text proposed by the Commission

Amendment

8a. The comments and opinions issued by other Member States or the Commission as well as the written explanation from the Member State where the foreign investment is planned, shall be enclosed in the secure database set up pursuant to paragraph 10. If certain information may not be shared pursuant to paragraph 11, the database shall at least include a reference to the comments, opinions and written explanations, and the involved parties.

Amendment 48

Proposal for a regulation

Article 7 – paragraph 9

Text proposed by the Commission

Amendment

9. Where the Member States or the Commission indicate that the screening decision referred to in paragraph 8, subparagraph (a), of this Article does not give utmost consideration to their comments provided pursuant to pursuant to paragraph 1 or the opinion provided pursuant to paragraph 2 or 3, the Member State where the investment is planned or completed shall organise a meeting to explain the obstacles encountered or the reasons for disagreement and shall endeavour to identify solutions, should a similar situation arise in the future. Where the screening decision concerns a multi-country notification, the other Member States who notified the foreign investment to the cooperation mechanism shall also be invited. The Commission shall be invited to any meetings organised pursuant to this paragraph.

9. Where the Member States or the Commission indicate that the screening decision referred to in paragraph 8, subparagraph (a), of this Article does not give utmost consideration to their comments provided pursuant to pursuant to paragraph 1 or the opinion provided pursuant to paragraph 2 or 3, the Member State where the investment is planned or completed shall organise a meeting to explain the obstacles encountered or the reasons for disagreement and shall endeavour to identify solutions, should a similar situation arise in the future. Where the screening decision concerns a multi-country notification, the other Member States who notified the foreign investment to the cooperation mechanism shall also be invited. The Commission shall be invited to any meetings organised pursuant to this paragraph. If the Commission decides that its opinions have still not been given the utmost consideration, and that the security or public order of the Union could be significantly affected, it may issue a follow-up opinion with recommendations on how to address the risks identified.

Amendment 49

Proposal for a regulation

Article 7 – paragraph 10

Text proposed by the Commission

Amendment

10. The Commission shall set up a secure database made available to all Member States with information on the foreign investments assessed by the cooperation mechanism and the outcome of the assessments under the national screening mechanisms, including information about the relevant screening decisions. The Commission shall upload to that database the information it has at its disposal since 12 October 2020. By [date of application of this Regulation] Member States shall upload to that database the information at their disposal about the outcome of the relevant procedure under their own screening mechanisms. They may also provide additional explanations.

10. The Commission shall set up a secure database made available to all Member States with information on the foreign investments assessed by the cooperation mechanism and the outcome of the assessments under the national screening mechanisms, including information about the relevant screening decisions. The Commission shall upload to that database the information it has at its disposal since 12 October 2020, including relevant business intelligence it has procured and verified from commercial vendors. By [date of application of this Regulation] Member States shall upload to that database the information at their disposal about the outcome of the relevant procedure under their own screening mechanisms. They may also provide additional explanations.

Amendment 50

Proposal for a regulation

Article 7 – paragraph 10 a (new)

Text proposed by the Commission

Amendment

10a. The Commission shall develop a business intelligence capability to inform the screening authorities, develop coordinated risk assessments and support a Union FDI capacity-building programme through the FDI Expert Group, offering best practices, lessons learned and common training programmes for officials of the Member States.

Amendment 51

Proposal for a regulation

Article 8 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) Member States shall inform the notifying Member State via the secure and encrypted system referred to in Article 12(4) that they reserve their right to issue comments no later than 15 calendar days following the receipt of the notification pursuant to Article 5;

(a) Member States shall inform the notifying Member State via the secure and encrypted system referred to in Article 12(4) that they reserve their right to issue comments no later than 15 calendar days following the receipt of the notification pursuant to Article 5; in exceptional circumstances the comments may be issued no later than 20 calendar days following the receipt of the notification pursuant to Article 5;

Amendment 52

Proposal for a regulation

Article 8 – paragraph 5

Text proposed by the Commission

Amendment

5. The notifying Member State shall provide the complete additional information requested by the Commission or other Member States pursuant to paragraph 2 without undue delay via the secure and encrypted system referred to in Article 12(4). Where the notifying Member State provides additional information to a Member State, such additional information shall be sent to the Commission simultaneously.

5. The notifying Member State shall provide the complete additional information requested by the Commission or other Member States pursuant to paragraph 2 without undue delay and no later than 180 days from the date of the request, via the secure and encrypted system referred to in Article 12(4). Where the notifying Member State provides additional information to a Member State, such additional information shall be sent to the Commission simultaneously.

Amendment 53

Proposal for a regulation

Article 9 – paragraph 1

Text proposed by the Commission

Amendment

1. A Member State that considers that a foreign investment in the territory of another Member State which has not been notified to the cooperation mechanism is likely to negatively affect its security or public order, it may open an own initiative procedure in relation to that foreign investment. Before opening the procedure, the Member State shall check that the Member State where the investment is planned or completed does not intend to notify the foreign investment to the cooperation mechanism.

1. A Member State that considers that a foreign investment in the territory of another Member State which has not been notified to the cooperation mechanism is likely to negatively affect its security or public order, also in accordance with, but not limited to, the case-law of the Court of Justice, it may open a substantially motivated own initiative procedure in relation to that foreign investment. Before opening the procedure, the Member State shall check that the Member State where the investment is planned or completed does not intend to notify the foreign investment to the cooperation mechanism.

Amendment 54

Proposal for a regulation

Article 9 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall be granted at least 15 months, after the foreign investment has been completed, the right to open the procedure set out in paragraph 1, provided the respective foreign investment has not been notified to the cooperation mechanism in the meantime.

2. Member States shall be granted up to 36 months, after the foreign investment has been completed, the right to open the procedure set out in paragraph 1, provided the respective foreign investment has not been notified to the cooperation mechanism in the meantime.

Amendment 55

Proposal for a regulation

Article 9 – paragraph 4

Text proposed by the Commission

Amendment

4. The Commission shall be granted at least 15 months, after the foreign investment has been completed, to open the procedure set out in paragraph 3, provided the respective foreign investment has not been notified to the cooperation mechanism in the meantime.

4. The Commission shall be granted up to 36 months, after the foreign investment has been completed, to open the procedure set out in paragraph 3, provided the respective foreign investment has not been notified to the cooperation mechanism in the meantime.

Amendment 56

Proposal for a regulation

Article 10 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) the name of the investor, the global ultimate owner of the investor and the Union target, the ownership structure of the investor and, where applicable, of the corporate group to which the investor is a part;

(a) the name of the investor, the global ultimate owner of the investor and the Union target, the ownership structure of the investor and, where applicable, of the corporate group to which the investor is a part, and whether they are subject to restrictive measures pursuant to Article 215 TFEU or were involved in a foreign investment previously screened by a Member State and not authorised or only authorised with conditions;

Amendment 57

Proposal for a regulation

Article 10 – paragraph 1 – point c

Text proposed by the Commission

Amendment

(c) name and address of the Union target, its activities and alternative providers, the ownership structure of the Union target and, where applicable, of the corporate group to which the Union target is a part;

(c) name and address of the Union target, its activities and alternative providers, the ownership structure of the Union target and, where applicable, of the corporate group to which the Union target is a part, and if it is economically active in items listed in Annex I to Regulation (EU) 2021/821 or Common Position 2008/944/CFSP, specifying the item concerned;

Amendment 58

Proposal for a regulation

Article 13 – paragraph 1

Text proposed by the Commission

Amendment

1. Member States shall determine, for the purposes of taking a screening decision pursuant to Article 14 or issuing a duly motivated comment pursuant to Article 7(1) or Article 9(7), whether a foreign investment is likely to negatively affect security or public order.

1. Member States shall determine, for the purposes of taking a screening decision pursuant to Article 14 or issuing a duly motivated comment pursuant to Article 7(1) or Article 9(7), whether a foreign investment is likely to negatively affect security or public order, in accordance with, but not limited to, the case-law of the Court of Justice. They may use the risk evaluation form developed by the Commission.

Amendment 59

Proposal for a regulation

Article 13 – paragraph 1 – subparagraph 1 a (new)

Text proposed by the Commission

Amendment

By ... [date of application of this Regulation], the Commission shall adopt implementing acts laying down the risk evaluation form. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 22(2). That form may be used under the first subparagraph.

Amendment 60

Proposal for a regulation

Article 13 – paragraph 2

Text proposed by the Commission

Amendment

2. The Commission shall determine, for the purpose of issuing a duly motivated opinion pursuant to Article 7(2) or (3) or Article 9(7), whether it considers a foreign investment to be likely to negatively affect security or public order.

2. The Commission shall determine, for the purpose of issuing a duly motivated opinion pursuant to Article 7(2) or (3) or Article 9(7), whether it considers a foreign investment to be likely to negatively affect security or public order, in accordance with, but not limited to, the case-law of the Court of Justice, without undermining the need to maintain an open and welcoming regime for investment into the Union, fully compatible with Union law and international commitments.

Amendment 61

Proposal for a regulation

Article 13 – paragraph 3 – introductory part

Text proposed by the Commission

Amendment

3. When determining whether an investment is likely to negatively affect security or public order, the Member States or the Commission shall in particular consider whether the investment concerned is likely to negatively affect:

3. When determining whether an investment is likely to negatively affect security or public order, the Member States or the Commission shall consider, based also on, but not limited to, the case-law of the Court of Justice, in particular, whether the investment concerned is likely to negatively affect:

Amendment 62

Proposal for a regulation

Article 13 – paragraph 3 – point a

Text proposed by the Commission

Amendment

(a) the security, integrity and functioning of critical infrastructure, whether physical or virtual; in that context, based on the information available, it shall also be assessed whether the foreign investment is likely to negatively affect the resilience of any of the critical entities they have identified under Directive (EU) 2022/2557 of the European Parliament and of the Council20 as well as entities in scope of Directive (EU) 2022/2555 of the European Parliament and of the Council21 . The results of the Union level coordinated security risk assessments of critical supply chains carried out in accordance with Article 22(1) of Directive (EU) 2022/2555 shall also be taken into account. ;

(a) the security, confidentiality, integrity and functioning of sectors of high criticality and other critical sectors as listed in Annexes I and II to Directive (EU) 2022/2557, whether physical or virtual, including the land and property critical to the use of such critical infrastructure; in that context, based on the information available, it shall also be assessed whether the foreign investment is likely to negatively affect the resilience of any of the critical entities they have identified under Directive (EU) 2022/2557 of the European Parliament and of the Council20 as well as entities in scope of Directive (EU) 2022/2555 of the European Parliament and of the Council21. The results of the Union level coordinated security risk assessments shall be taken into account, including those of critical supply chains carried out in accordance with Article 22(1) of Directive (EU) 2022/2555 which take into account both technical and non-technical risk factors, such as undue influence by a third country on suppliers;

_________________

20 Directive (EU) 2022/2557 of the European Parliament and of the Council of 14 December 2022 on the resilience of critical entities and repealing Council Directive 2008/114/EC (OJ L 333, 27.12.2022, p. 164–198, ELI: http://data.europa.eu/eli/dir/2022/2557/oj).

21 Directive (EU) 2022/2555 of the European Parliament and of the Council of 14 December 2022 on measures for a high common level of cybersecurity across the Union, amending Regulation (EU) No 910/2014 and Directive (EU) 2018/1972, and repealing Directive (EU) 2016/1148 (OJ L 333, 27.12.2022, p. 80–152, ELI: http://data.europa.eu/eli/dir/2022/2555/oj).

Amendment 63

Proposal for a regulation

Article 13 – paragraph 3 – point c

Text proposed by the Commission

Amendment

(c) the continuity of supply of critical inputs;

(c) the continuity of supply of critical inputs and the resilience of supply chains, taking into consideration the risk assessments provided for in Article 24 of Regulation (EU) 2024/1252;

Amendment 64

Proposal for a regulation

Article 13 – paragraph 3 – point d

Text proposed by the Commission

Amendment

(d) the protection of sensitive information, including personal data, in particular with regard to the ability of the foreign investor to access, control, and otherwise process such personal data, or

(d) the protection of sensitive information, including personal data and intellectual property, in particular with regard to the ability of the foreign investor to access, control, and otherwise process such sensitive information, or

Amendment 65

Proposal for a regulation

Article 13 – paragraph 4 – introductory part

Text proposed by the Commission

Amendment

4. When determining whether an investment is likely to negatively affect security or public order, the Member States or the Commission shall also take into account information related to the foreign investor, including:

4. When determining whether an investment is likely to negatively affect security or public order, based on, but not limited to, the case-law of the Court of Justice, the Member States or the Commission shall at least take into account information related to the foreign investor, including:

Amendment 66

Proposal for a regulation

Article 13 – paragraph 4 – point a

Text proposed by the Commission

Amendment

(a) whether the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of the foreign investor was involved in a foreign investment previously screened by a Member State and that was not authorised or was only authorised with conditions; to determine this, Member States and the Commission shall rely on information available to them, including the information contained in the secure database set up pursuant to Article 7(10);

(a) whether the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of the foreign investor was involved in a foreign investment previously screened by a Member State, or where available, by a third country with an established Foreign Direct Investment screening mechanism, with which the Union cooperates in investment screening matters, and that was not authorised or was only authorised with conditions; to determine this, Member States and the Commission shall rely on information available to them, including the information contained in the secure database set up pursuant to Article 7(10);

Amendment 67

Proposal for a regulation

Article 13 – paragraph 4 – point e

Text proposed by the Commission

Amendment

(e) whether the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of the foreign investor is likely to pursue a third country’s policy objectives, or facilitate the development of a third country’s military capabilities.

(e) whether the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of the foreign investor is likely to negatively affect the security interests or restrictive measures pursuant to Article 215 TFEU of the Union or its Member States, or facilitate the development of a third country’s military capabilities.

Amendment 68

Proposal for a regulation

Article 13 – paragraph 4 – point e a (new)

Text proposed by the Commission

Amendment

(ea) whether the foreign investor or any of its subsidiaries are established in a third country whose legislation allows arbitrary access to any kind of company operations or data, including commercially sensitive data, and can impose obligations for intelligence purposes without democratic checks and balances, oversight mechanisms, due process or the right to appeal to an independent court or tribunal;

Amendment 69

Proposal for a regulation

Article 13 – paragraph 4 – subparagraph 1 a (new)

Text proposed by the Commission

Amendment

The Commission, in cooperation with the FDI Expert Group, may carry out a coordinated risk assessment relating to a specific sector, critical technology or foreign investor and the level of control established by third countries, to inform screening decisions of the Member States; the coordinated risk assessment shall be added to the risk evaluation form provided for in paragraph 1, shared and made available in the secure database set up pursuant to Article 7(10), and shall be taken into account by Member States when determining whether an investment is likely to negatively affect security or public order.

Amendment 70

Proposal for a regulation

Article 21 – paragraph 1

Text proposed by the Commission

Amendment

1. The Commission is empowered to adopt implementing acts setting out the forms to be used to provide the information indicated in Article 10(1).

1. The Commission is empowered to adopt implementing acts setting out the forms to be used to provide the information indicated in Article 4(2)(ia), Article 10(1) and Article 13(1).

Amendment 71

Proposal for a regulation

Annex II – subheading 1

Text proposed by the Commission

Amendment

List of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union

List of items and entities of particular importance for the security or public order interests of the Union

Amendment 72

Proposal for a regulation

Annex II – point 2 a (new)

Text proposed by the Commission

Amendment

2a. Union, national, state, and local government election-related infrastructure

Amendment 73

Proposal for a regulation

Annex II – point 2 b (new)

Text proposed by the Commission

Amendment

2b. Media services as defined in Article 2, point (1), of Regulation (EU) 2024/1083 of the European Parliament and of the Council1a

_________________

1a Regulation (EU) 2024/1083 of the European Parliament and of the Council of 11 April 2024 establishing a common framework for media services in the internal market and amending Directive 2010/13/EU (European Media Freedom Act) (OJ L, 2024/1083, 17.4.2024, ELI: http://data.europa.eu/eli/reg/2024/1083/oj).

Amendment 74

Proposal for a regulation

Annex II – point 3 – point h – indent 3

Text proposed by the Commission

Amendment

– Net-zero technologies, including photovoltaics

– Net-zero technologies, including large-scale photovoltaic and solar thermal infrastructure, as well as onshore and offshore renewable energy technologies, and perovskite solar cells

Amendment 75

Proposal for a regulation

Annex II – point 3 – point h – indent 4

Text proposed by the Commission

Amendment

– Smart grids and energy storage, batteries

– Energy grids, smart grids and energy storage, batteries

Amendment 76

Proposal for a regulation

Annex II – point 3 – point j a (new)

Text proposed by the Commission

Amendment

ja. Critical raw materials and supply chains:

- extraction and refining of critical raw materials, including lithium, rare earth elements, cobalt, and nickel

- recycling and recovery technologies for critical raw materials, particularly from batteries and electronic waste

- strategic stockpiling and storage facilities for critical raw materials

- supply chain infrastructure for the secure transport and distribution of critical raw materials

- research and development into material substitution, processing innovations, and advanced recycling methods

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The Chair in his capacity as rapporteur for opinion, acting after the vote in ITRE on 19 February 2025 and the subsequent withdrawal of the previous rapporteur, declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

The screening of foreign investments in the Union and repealing Regulation (EU) 2019/452 of the European Parliament and of the Council

References

COM(2024)0023 – C9-0011/2024 – 2024/0017(COD)

Committee(s) responsible

INTA

Opinion by

Date announced in plenary

ITRE

25.4.2024

Rapporteur for the opinion

Date appointed

Borys Budka

20.2.2025

Previous rapporteur for opinion

Pascale Piera

Discussed in committee

21.11.2024

Date adopted

19.2.2025

Result of final vote

+:

–:

0:

54

21

6

Members present for the final vote

Oihane Agirregoitia Martínez, Wouter Beke, Hildegard Bentele, Tom Berendsen, Paolo Borchia, Markus Buchheit, João Cotrim De Figueiredo, Giovanni Crosetto, Raúl de la Hoz Quintano, Pilar del Castillo Vera, Elena Donazzan, Sofie Eriksson, Jan Farský, Sigrid Friis, Lina Gálvez, Alexandra Geese, Jens Geier, Nicolás González Casares, Giorgio Gori, Bart Groothuis, Christophe Grudler, Elisabetta Gualmini, Niels Flemming Hansen, Eero Heinäluoma, Ivars Ijabs, Fernand Kartheiser, Seán Kelly, Rudi Kennes, Michał Kobosko, Ondřej Krutílek, Eszter Lakos, Morten Løkkegaard, Sara Matthieu, Eva Maydell, Marina Mesure, Jana Nagyová, Dan Nica, Angelika Niebler, Ville Niinistö, Mirosława Nykiel, Daniel Obajtek, Thomas Pellerin-Carlin, Tsvetelina Penkova, Pascale Piera, Virgil-Daniel Popescu, Jüri Ratas, Aura Salla, Elena Sancho Murillo, Paulius Saudargas, Benedetta Scuderi, Anthony Smith, Nicolae Ştefănuță, Anna Stürgkh, Beata Szydło, Dario Tamburrano, Bruno Tobback, Matej Tonin, Yvan Verougstraete, Mariateresa Vivaldini, Andrea Wechsler, Angelika Winzig, Nicola Zingaretti

Substitutes present for the final vote

Christophe Bay, Carlo Ciccioli, Krzysztof Hetman, Radan Kanev, Marion Maréchal, Dario Nardella, João Oliveira, René Repasi, Virginijus Sinkevičius, Zala Tomašič, Francesco Torselli

Members under Rule 216(7) present for the final vote

Arno Bausemer, Marie-Luce Brasier-Clain, Valérie Deloge, Angéline Furet, Catherine Griset, Pär Holmgren, Milan Mazurek, Malika Sorel

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

Key to symbols:

24.2.2025

OPINION OF THE COMMITTEE ON THE INTERNAL MARKET AND CONSUMER PROTECTION

for the Committee on the International Trade

on the proposal for a regulation of the European Parliament and of the Council on the screening of foreign investments in the Union and repealing Regulation (EU) 2019/452 of the European Parliament and of the Council

(COM(2024)0023 – C90011/2024 – 2024/0017(COD))

Rapporteur for opinion: Svenja Hahn

SHORT JUSTIFICATION

The Rapporteur welcomes the revision of the Foreign Direct Investment Regulation, and finds that the Commission proposal adequately addresses some of the main shortcomings of the current regulation. However, some further clarity and harmonisation is needed in order to streamline some processes across Member States and thereby enhancing the Internal Market perspective, while also ensuring that the revised regulation will not have an unduly negative effect on foreign investment, which is crucial for the competitiveness of the Union.

The proposed amendments improve clarity, consistency, and transparency in the process of screening foreign direct investment. The amendments aim to reduce the legal uncertainty for foreign investors, thereby supporting a competitive internal market, while safeguarding the security and public order interests of the Union. They align with the regulation's goals of creating a predictable investment environment and ensuring harmonized practices across Member States for the screening of incoming foreign investment.

By establishing clearer screening criteria and standardizing timelines, these amendments address areas where ambiguity and discretionary powers could lead to inconsistent applications, potentially deterring desirable foreign investment. This approach also balances Member State sovereignty with EU-wide cohesion, reducing regulatory fragmentation, strengthening investor confidence, and protecting critical sectors and assets integral to the Union's security and public order interests.

Key suggestions:

The amendments introduce several key suggestions:

 Standardized, more detailed procedures and timelines across Member States

 Enhanced transparency requirements for both Commission opinions and Member State decisions

 Mandatory notification of investments and Commission opinion in cases of opaque or unclear ownership structure

 Clear criteria for assessing state influence and control

 Streamlined appeal mechanisms

 Comprehensive information requirements

Impacts on European Commission and Member States

These amendments affect both the European Commission and the Member States. The Commission's role is strengthened regarding investments where the ownership structure is opaque or unclear, and the ultimate beneficial owner is unknown. Member States, meanwhile, will benefit from standardized criteria and timelines, streamlined appeals, and enhanced coordination with the Commission, supporting consistent application of incoming foreign investment screening practices across the EU while protecting the Union's security and public order interests.

AMENDMENTS

The Committee on the Internal Market and Consumer Protection submits the following to the Committee on International Trade, as the committee responsible:

Amendment 1

Proposal for a regulation

Recital 7

Text proposed by the Commission

Amendment

(7) Certain investments not covered by Regulation (EU) 2019/452 could create risks for the Union’s security and public order. In particular, this concerns certain investments carried out in Member States that do not have a screening mechanism; investments carried out in Member States that have a screening mechanism whose scope does not include certain sensitive investments; and investments that are made by foreign investors through a subsidiary established in the Union and that potentially present the same risks to security or public order as direct investments made from third countries.

(7) Certain investments not covered by Regulation (EU) 2019/452 could create risks for the Union’s security, public order or the protection of the essential interests of the Member States and the Union. In particular, this concerns certain investments carried out in Member States that do not have a screening mechanism; investments carried out in Member States that have a screening mechanism whose scope does not include certain sensitive investments; and investments that are made by foreign investors through a subsidiary established in the Union and that potentially present the same risks to security or public order as direct investments made from third countries.

Amendment 2

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

(8) A significant majority of Member States, but not all, have a legislative instrument in place that provides for a mechanism to screen FDIs. In many Member States, national laws also extend to screening intra-Union investments. Among the Member States, there are substantial differences as to the scope, thresholds and criteria used to assess whether an investment is likely to negatively affect security or public order. There are also differences in the screening processes. In certain Member States, the investment can be implemented before having received clearance with respect to the impact on security and public order. However, others require that the investment is only finalised after authorisation under the screening mechanism. Such divergences create a problem for the smooth functioning of the internal market. For example, they create an uneven playing field and increase compliance costs for investors seeking to notify transactions in more than one Member State. This Regulation helps in reducing divergences on key elements of the mechanisms implemented at national level. This is crucial to ensure predictability for investors on the applicable national regimes and their characteristics, thereby reducing the associated compliance costs. This is all the more relevant considering the level of integration of internal market, which may result in a single transaction impacting multiple Member States across the Union. It is for example possible that a transaction aimed to the acquisition of a target company in one Member State also affects security and public order in another Member State, due to the supply chain structure or other economic elements connecting the target with other companies based in a different Member States. In order to address these internal market problems and ensure greater consistency and predictability, it is appropriate that the criteria and elements to be used for the assessment of foreign investments are established through Union action.

(8) A significant majority of Member States, but not all, have a legislative instrument in place that provides for a mechanism to screen FDIs. In many Member States, national laws also extend to screening intra-Union investments. Among the Member States, there are substantial differences as to the scope, thresholds and criteria used to assess whether an investment is likely to negatively affect security or public order. There are also differences in the screening processes. In certain Member States, the investment can be implemented before having received clearance with respect to the impact on security and public order. However, others require that the investment is only finalised after authorisation under the screening mechanism. Such divergences create a problem for the smooth functioning of the internal market. For example, they create an uneven playing field and increase compliance costs for investors seeking to notify transactions in more than one Member State. This Regulation helps in reducing divergences on key elements of the mechanisms implemented at national level. This is crucial to ensure predictability for investors on the applicable national regimes and their characteristics, thereby reducing the associated compliance costs. This is all the more relevant considering the level of integration of internal market, which may result in a single transaction impacting multiple Member States across the Union. It is for example possible that a transaction aimed to the acquisition of a target company in one Member State also affects security and public order in another Member State, due to the supply chain structure or other economic elements connecting the target with other companies based in a different Member States. In order to address these internal market problems and ensure greater consistency and predictability, it is appropriate that the criteria and elements to be used for the assessment of foreign investments are established through Union action. Furthermore, it is appropriate that Member States align their screening deadlines at national level with the Union cooperation mechanism timelines to ensure harmonisation across the Union.

Amendment 3

Proposal for a regulation

Recital 9

Text proposed by the Commission

Amendment

(9) To ensure a consistent approach to foreign investment screening across the Union, all Member States should be required to screen foreign investments on the grounds of security or public order. Therefore, the core elements of national screening mechanisms should be harmonised. That minimum harmonisation includes the scope of investments to be screened, the screening procedure’s essential features, and the interaction between the national mechanism and the Union cooperation mechanism. In addition, Member States should also be able to extend the scope of their national screening mechanism to include other types of foreign investments, foreign investments in other sectors, additional Union targets or economic activities that the relevant Member State considers critical for its security or public order. When they do so, such screening should also comply with the provisions of this Regulation.

(9) To ensure a consistent approach to foreign investment screening across the Union, all Member States should be required to screen foreign investments on the grounds of security, public order or the protection of the essential interests of the Member States and the Union. Therefore, the core elements of national screening mechanisms should be harmonised. That minimum harmonisation includes the scope of investments to be screened, the screening procedure’s essential features, and the interaction between the national mechanism and the Union cooperation mechanism including consistency in the timelines for screenings. In addition, Member States should also be able to extend the scope of their national screening mechanism to include other types of foreign investments, foreign investments in other sectors, additional Union targets or economic activities that the relevant Member State considers critical for its security or public order. When they do so, such screening should also comply with the provisions of this Regulation.

Amendment 4

Proposal for a regulation

Recital 12

Text proposed by the Commission

Amendment

(12) Screening foreign investments should be carried out in accordance with this Regulation, taking into account all factual information available and adhering to the principle of proportionality and other principles enshrined in the Treaties. Moreover, the screening of foreign investments which are carried out through subsidiaries of the foreign investor established in the Union should in all cases comply with the requirements stemming from Union law, and in particular with the Treaty provisions on freedom of establishment and free movement of capital, as interpreted in the case-law of the Court of Justice of the European Union, consistently with the objective of preserving an open and inclusive internal market. Any restrictions to the freedom of establishment and free movement of capital in the Union, including the screening and measures arising from screening, such as mitigating measures and prohibitions should be based on a genuine and sufficiently serious threat to a fundamental interest of society, and should be appropriate and necessary as set out in the case law of the Court of Justice. At the same time, when assessing the justification and proportionality of a restriction, the specificities of investments within the Union operated through a subsidiary of a foreign investor may be taken into account when assessing any restrictions on freedom of establishment or to the free movement of capital, including where appropriate in any Commission opinion adopted pursuant to this Regulation. This should be done taking into account the integration of Member State schemes into a Union-wide cooperation mechanism.

(12) Screening foreign investments should be carried out in accordance with this Regulation, taking into account all factual information available and adhering to the principle of proportionality and other principles enshrined in the Treaties. Member States should ensure that their screening mechanisms limit administrative burdens and delays for foreign investors, for example by creating simplified procedures and reduced review timelines for investments without particular economic significance. Moreover, the screening of foreign investments which are carried out through subsidiaries of the foreign investor established in the Union should in all cases comply with the requirements stemming from Union law, and in particular with the Treaty provisions on freedom of establishment and free movement of capital, as interpreted in the case-law of the Court of Justice of the European Union, consistently with the objective of preserving an open and inclusive internal market. Any restrictions to the freedom of establishment and free movement of capital in the Union, including the screening and measures arising from screening, such as mitigating measures and prohibitions should be based on a genuine and sufficiently serious threat to a fundamental interest of society, and should be appropriate and necessary as set out in the case law of the Court of Justice. At the same time, when assessing the justification and proportionality of a restriction, the specificities of investments within the Union operated through a subsidiary of a foreign investor may be taken into account when assessing any restrictions on freedom of establishment or to the free movement of capital, including where appropriate in any Commission opinion adopted pursuant to this Regulation. This should be done taking into account the integration of Member State schemes into a Union-wide cooperation mechanism.

Amendment 5

Proposal for a regulation

Recital 14

Text proposed by the Commission

Amendment

(14) It is also necessary to make the Member State where the foreign investment is planned or completed more accountable to the Commission and to those Member States that express duly justified concerns for their public order or security or the Union’s.

(14) It is also necessary to make the Member State where the foreign investment is planned or completed more accountable, transparent and responsive to the Commission and to those Member States that express duly justified concerns for their public order or security or the Union’s.

Amendment 6

Proposal for a regulation

Recital 15

Text proposed by the Commission

Amendment

(15) The common framework set out in this Regulation should be without prejudice to the sole responsibility of Member States to safeguard their national security as provided for in Article 4(2) TEU. It should also be without prejudice to the protection of their essential security interests in accordance with Article 346 TFEU.

(15) The common framework set out in this Regulation should be without prejudice to the sole responsibility of Member States to safeguard their national security as provided for in Article 4(2) TEU. It should also be without prejudice to the protection of their essential security interests in accordance with Article 346 TFEU. The final decision on foreign investments should always remain the sole responsibility of the Member State where the foreign investment is planned or completed.

Amendment 7

Proposal for a regulation

Recital 18

Text proposed by the Commission

Amendment

(18) To ensure consistent and predictable screening processes, it is appropriate to lay down the essential features of the screening mechanisms to be implemented by Member States. Those features should at least include the scope of the transactions to be subject to an authorisation requirement, deadlines for the screening and the possibility for undertakings concerned by the screening decision to seek recourse against such decisions. Rules and procedures relating to screening mechanisms should be transparent and should not discriminate between third countries.

(18) To ensure consistent and predictable screening processes, it is appropriate to lay down the essential features of the screening mechanisms to be implemented by Member States. Those features should at least include the scope of the transactions to be subject to an authorisation requirement, deadlines for the screening and the possibility for undertakings concerned by the screening decision to seek recourse against such decisions through a standardised appeal mechanism. Sufficient resources should be provided to the screening authority to effectively implement such screening processes. Rules and procedures relating to screening mechanisms should be transparent, cause minimal administrative burden while avoiding undue delays for the applicants and should not discriminate between third countries.

Amendment 8

Proposal for a regulation

Recital 18 a (new)

Text proposed by the Commission

Amendment

(18 a) To ensure procedural predictability and consistency with transaction approval processes that often occur simultaneously to foreign investment screenings, Member States should specify and adhere to clear and reasonable review timelines.

Amendment 9

Proposal for a regulation

Recital 21

Text proposed by the Commission

Amendment

(21) To ensure that the cooperation mechanism focuses only on those foreign investments where the characteristics of the foreign investor or the Union target make an effect on security or public order likely, it is appropriate to establish risk-based conditions for the notification of foreign investments undergoing screening in a Member State to the other Member States and the Commission. Where a foreign investment does not meet any of the conditions, the Member State where the foreign investment is undergoing screening may notify the foreign investment to the other Member States and the Commission, including where the Union target has significant operations in other Member States, or belongs to a corporate group that has several companies in different Member States.

(21) To ensure that the cooperation mechanism focuses only on those foreign investments where the characteristics of the foreign investor or the Union target make an effect on security or public order likely, it is appropriate to establish risk-based conditions for the notification of foreign investments undergoing screening in a Member State to the other Member States and the Commission. Cases of opaque or unclear ownership structures, such as where the ultimate beneficiary is unknown, should be included as such a condition. Where a foreign investment does not meet any of the conditions, the Member State where the foreign investment is undergoing screening may notify the foreign investment to the other Member States and the Commission, including where the Union target has significant operations in other Member States, or belongs to a corporate group that has several companies in different Member States.

Amendment 10

Proposal for a regulation

Recital 25

Text proposed by the Commission

Amendment

(25) Furthermore, it should be possible for the Commission to adopt an opinion addressed to all Member States if it identifies several foreign investments that, taken together, are likely to impact the security or public order of the Union. This could notably be the case where several foreign investments present comparable characteristics. These include where the foreign investments are made by the same foreign investor, or foreign investors presenting similar risks, or where several foreign investments concern the same target or the same infrastructure, including trans-European infrastructure for transport, energy and communication. Member States and the Commission should discuss the risk analysis and the possible ways to address the risks identified in the opinion.

(25) Furthermore, it should be possible for the Commission to adopt an opinion addressed to all Member States if it identifies several foreign investments that, taken together, are likely to impact the security or public order of the Union. This could notably be the case where several foreign investments present comparable characteristics. These include where the foreign investments are made by the same foreign investor, or foreign investors presenting similar risks, or where several foreign investments concern the same target or the same infrastructure, including trans-European infrastructure for transport, energy and communication, which are vital for the proper functioning of Union economies and societies and for ensuring Union strategic autonomy. Member States and the Commission should discuss the risk analysis and the possible ways to address the risks identified in the opinion.

Amendment 11

Proposal for a regulation

Recital 25 a (new)

Text proposed by the Commission

Amendment

(25 a) To ensure transparency and predictability, opinions by the Commission should be based on specific and documented risks and should follow set issuance criteria, including documented security risks or cross-border concerns.

Amendment 12

Proposal for a regulation

Recital 26 a (new)

Text proposed by the Commission

Amendment

(26 a) To avoid unnecessarily prolonged periods of uncertainty for investors and Union stakeholders, it is important to urge national screening authorities to finalize their screening procedures and decisions within the deadlines set out in this Regulation which, with prolongations, should not exceed 180 days from receiving the request for authorisation for foreign investments.

Amendment 13

Proposal for a regulation

Recital 34

Text proposed by the Commission

Amendment

(34) To ensure the efficiency and effectiveness of the cooperation mechanism, it is necessary to align deadlines and procedures when several foreign investments linked to the same broader transaction are screened in several Member States. In such multi-country transactions, the applicant should file the different requests for authorisation in the Member States concerned simultaneously. In addition, those Member States should notify the requests simultaneously to the cooperation mechanism. To ensure an efficient handling of these multi-country transactions, the Member States concerned should coordinate and agree on whether the foreign investments are notifiable and when they should be notified. Furthermore, the Member States concerned should also coordinate on the final decision. If the Member States concerned intend to authorise the foreign investment with conditions, they should ensure that these conditions are compatible with one another and address cross-border risks adequately. Before prohibiting a foreign investment, the Member States concerned should consider whether a conditional authorisation with coordinated measures and their coordinated enforcement is not sufficient to address the likely effect on security or public order. The Commission should be able to participate in such coordination.

(34) To ensure the efficiency and effectiveness of the cooperation mechanism, it is necessary to align deadlines and procedures when several foreign investments linked to the same broader transaction are screened in several Member States. In such multi-country transactions, the applicant should file the different requests for authorisation in the Member States concerned simultaneously. In addition, those Member States should notify the requests simultaneously to the cooperation mechanism. To ensure an efficient handling of these multi-country transactions, the Member States concerned should coordinate and agree on whether the foreign investments are notifiable and when they should be notified. Furthermore, the Member States concerned should also coordinate on the final decision. In order to ensure the highest level of harmonisation, screening deadlines at national level should be aligned with the timelines of the cooperation mechanism. If the Member States concerned intend to authorise the foreign investment with conditions, they should ensure that these conditions are compatible with one another and address cross-border risks adequately. Before prohibiting a foreign investment, the Member States concerned should consider whether a conditional authorisation with coordinated measures and their coordinated enforcement is not sufficient to address the likely effect on security or public order. The Commission should be able to participate in such coordination.

Amendment 14

Proposal for a regulation

Recital 35

Text proposed by the Commission

Amendment

(35) To ensure a consistent approach to the screening of investments across the Union, it is essential that the standards and criteria used to assess likely risks to security and public order are those set at Union level in this Regulation. Those should include the impact on the security, integrity and functioning of critical infrastructure, the availability of critical technologies (including key enabling technologies) and the continued supply of critical inputs for security or public order, the disruption, failure, loss or destruction of which would have a significant impact on security and public order in one or more Member States or on the Union as a whole. In that regard, Member States and the Commission should also take into account the context and circumstances of the foreign investment. This should include, in particular, whether an investor is controlled directly or indirectly, for example through significant funding, by the government of a third country or is involved in pursuing policy objectives of third countries to facilitate their military capabilities. In this context, if applicable, Member States and the Commission should also consider why the foreign investor, its beneficial owner or any of its subsidiaries or a person acting on behalf or at the direction of such a foreign investor is subject to any type of Union restrictive measures pursuant to Article 215 TFEU.

(35) To ensure a consistent approach to the screening of investments across the Union, it is essential that the standards and criteria used to assess likely risks to security and public order are those set at Union level in this Regulation. Those should include the impact on the security, integrity, functioning and resilience of critical infrastructure and of the internal market, the availability of critical technologies (including key enabling technologies) and the continued supply of critical inputs for security or public order, the disruption, failure, loss or destruction of which would have a significant impact on security and public order in one or more Member States or on the Union as a whole. Supply chain and other strategic dependencies, as well as macro-economic stability, should also be considered. In that regard, Member States and the Commission should also take into account the context and circumstances of the foreign investment. This should include, in particular, whether an investor is controlled directly or indirectly, for example through significant funding, by the government of a third country or is involved in pursuing policy objectives of third countries to facilitate their military capabilities. Specific criteria for assessing foreign government influence and control on foreign investors should be set out, in order to ensure consistent evaluation across Member States. In this context, if applicable, Member States and the Commission should also consider why the foreign investor, its beneficial owner or any of its subsidiaries or a person acting on behalf or at the direction of such a foreign investor is subject to any type of Union restrictive measures pursuant to Article 215 TFEU.

Amendment 15

Proposal for a regulation

Recital 36 a (new)

Text proposed by the Commission

Amendment

(36 a) When the foreign investment does not comply with the mitigating measures provided in a screening decision, the Member State may, without prejudice to other administrative, financial, or criminal provisions provided for by its national law, withdraw the authorisation granted to a foreign investment or adopt additional mitigating measures.

Amendment 16

Proposal for a regulation

Recital 37

Text proposed by the Commission

Amendment

(37) To support the implementation of the cooperation mechanism and to foster the exchange of good practices among Member States, the expert group on the screening of foreign investments set up pursuant to Regulation (EU) 2019/452 should be maintained.

(37) To support the implementation of the cooperation mechanism and to foster the exchange of good practices among Member States, the expert group on the screening of foreign investments set up pursuant to Regulation (EU) 2019/452 should be maintained and its tasks updated in accordance with this Regulation.

Amendment 17

Proposal for a regulation

Recital 38 a (new)

Text proposed by the Commission

Amendment

(38 a) In order to enhance the transparency and facilitate the process for investors, Member States should maintain publicly accessible resources including detailed guidance on screening procedures and timelines, sector-specific risk assessment frameworks as well as templates and documentation requirements. The Commission should maintain a central portal providing consolidated guidance on Union-level requirements, links to Member State screening authorities and to the annual report referred to in this Regulation.

Amendment 18

Proposal for a regulation

Recital 44

Text proposed by the Commission

Amendment

(44) The Commission should evaluate the functioning and effectiveness of this Regulation 5 years after the date of application of this Regulation and every 5 years after that and present a report to the European Parliament and to the Council. That report should include an assessment of whether or not this Regulation should be amended. Where the report proposes amending this Regulation, it may be accompanied by a legislative proposal.

(44) The Commission should evaluate the functioning and effectiveness of this Regulation 5 years after the date of application of this Regulation and every 5 years after that and present a report to the European Parliament and to the Council. That report should assess the impact of this Regulation on the volume and patterns of foreign investments in the Union, including a comparison with other relevant economies. That report should also focus on the adequacy of the list of projects, programmes and the list of technologies in the Annexes of this Regulation. That report should furthermore include an assessment of whether or not this Regulation should be amended. Where the report proposes amending this Regulation, it may be accompanied by a legislative proposal.

Amendment 19

Proposal for a regulation

Recital 50 a (new)

Text proposed by the Commission

Amendment

(50 a) To support the effective and consistent implementation of this Regulation, the Commission should publish guidelines to clarify key concepts and procedures related to investment screening, and to outline steps for initiating own-initiative screenings based on substantial evidence of serious risks. By incorporating best practices, streamlining procedures, and ensuring the protection of confidential information, the guidelines will enhance transparency, reduce administrative burdens, and ensure legal certainty for stakeholders. Regular updates will reflect evolving investment landscapes and regulatory needs.

Amendment 20

Proposal for a regulation

Article 1 – paragraph 1

Text proposed by the Commission

Amendment

1. This Regulation establishes a Union framework for the screening, by Member States, of foreign investments in their territory, on the grounds of security or public order.

1. This Regulation establishes a Union framework for the screening, by Member States, of foreign investments in their territory, on the grounds of security or public order to protect the essential interests of the Member States and the Union, while ensuring the Union remains an open and attractive destination for investment.

Amendment 21

Proposal for a regulation

Article 1 – paragraph 5 a (new)

Text proposed by the Commission

Amendment

5 a. Member States and the Commission shall ensure that any measures adopted under this Regulation are proportionate, evidence-based, and do not create unnecessary barriers to legitimate investments.

Amendment 22

Proposal for a regulation

Article 2 – paragraph 1 – point 7 a (new)

Text proposed by the Commission

Amendment

(7 a) ‘beneficial owner’ means any natural person who ultimately owns or controls a legal entity or a similar legal arrangement;

Amendment 23

Proposal for a regulation

Article 2 – paragraph 1 – point 7 b (new)

Text proposed by the Commission

Amendment

(7 b) ‘opaque ownership structure’ refers to cases where the ultimate beneficial owner is obscured, for example by layers of indirect ownership such as multilevel indirect shareholding;

Amendment 24

Proposal for a regulation

Article 2 – paragraph 1 – point 23 a (new)

Text proposed by the Commission

Amendment

(23 a) ‘critical infrastructure’ means an asset, a facility, equipment, a network or a system, or a part of an asset, a facility, equipment, a network or a system, which is necessary for the provision of an essential service;

Amendment 25

Proposal for a regulation

Article 4 – paragraph 2 – point a

Text proposed by the Commission

Amendment

(a) adequate procedures shall be provided for the screening authority to determine whether it has jurisdiction over a foreign investment filed for authorisation and to carry out an initial review followed by, where necessary, an in-depth investigation to determine whether that foreign investment is likely to negatively affect security or public order. The purpose of the in-depth investigation shall be, in particular, to determine whether a screening decision as referred to in Article 14(1) is appropriate and to determine its content.

(a) adequate procedures and means shall be provided for the screening authority to determine whether it has jurisdiction over a foreign investment filed for authorisation and to carry out an initial review followed by, where necessary, an in-depth investigation to determine whether that foreign investment is likely to negatively affect security or public order. The purpose of the in-depth investigation shall be, in particular, to determine whether a screening decision as referred to in Article 14(1) is appropriate and to determine its content.

Amendment 26

Proposal for a regulation

Article 4 – paragraph 2 – point c

Text proposed by the Commission

Amendment

(c) the screening authority shall be empowered to start screening foreign investments by its own initiative for at least 15 months after the completion of a foreign investment that is not subject to an authorisation requirement where the screening authority has grounds to consider that the foreign investment may affect security or public order;

(c) the screening authority shall be empowered to start screening foreign investments falling under the scope of the respective Member State’s screening mechanism by its own initiative within 15 months of the completion of a foreign investment that is not subject to an authorisation requirement where there is substantial evidence indicating that the foreign investment may affect security or public order. Retrospective screening of completed foreign investments shall be limited to cases in which new threats to public security or order emerge post-investment or cases where it is demonstrated that the foreign investor has provided false, misleading or incomplete information, and specific criteria for identifying such qualifying threats shall be defined in the implementing regulations;

Amendment 27

Proposal for a regulation

Article 4 – paragraph 2 – point d

Text proposed by the Commission

Amendment

(d) confidential information, including commercially sensitive information, made available to the Member State carrying out the screening shall be protected;

(d) confidential information, including commercially sensitive information, made available to the Member State carrying out the screening shall be protected; the Member State carrying out the screening shall give concerned undertakings the opportunity to indicate which information made available they consider to be confidential;

Amendment 28

Proposal for a regulation

Article 4 – paragraph 2 – point e

Text proposed by the Commission

Amendment

(e) foreign investors, foreign investors’ subsidiaries in the Union through which the foreign investment is carried out and undertakings concerned by a screening decision shall have the possibility to seek judicial recourse against that screening decision;

(e) foreign investors, foreign investors’ subsidiaries in the Union through which the foreign investment is carried out and undertakings concerned by a screening decision shall have the possibility to seek judicial recourse against that screening decision; Member States shall implement a standardised appeal mechanism accessible to investors, with appeals to be resolved within 60 days in order to ensure procedural fairness and the Commission shall oversee the consistency in the handling of appeals across Member States;

Amendment 29

Proposal for a regulation

Article 4 – paragraph 2 – point f

Text proposed by the Commission

Amendment

(f) an annual report shall be made public, and shall include information on relevant legislative developments in the Member State and aggregate and anonymised data on the investments screened, including the outcome of screening decisions, nationalities, or country of establishment as the case may be, of parties to the investments notified to the screening authority, and the economic sectors in which those transactions took place;

(f) an annual report shall be made public, and shall include information on relevant legislative developments in the Member State, criteria used to assess whether an investment is likely to negatively affect security or public order and aggregate and anonymised data on the investments screened, including the outcome of screening decisions, nationalities, or country of establishment as the case may be, of parties to the investments notified to the screening authority, and the economic sectors in which those transactions took place;

Amendment 30

Proposal for a regulation

Article 4 – paragraph 2 – point g

Text proposed by the Commission

Amendment

(g) foreign investments subject to an authorisation requirement as referred to in paragraph 4 shall be filed by the applicant requesting authorisation with the screening authority and shall be screened before the foreign investment is completed;

(g) foreign investments subject to an authorisation requirement as referred to in paragraph 4 shall be filed by the applicant requesting authorisation with the screening authority and shall be screened before the foreign investment is completed; the screening authority shall limit administrative burdens and undue delays for the applicant requesting authorisation;

Amendment 31

Proposal for a regulation

Article 4 – paragraph 2 – point i a (new)

Text proposed by the Commission

Amendment

(i a) adequate procedures to identify the beneficial owners of the investment screened in accordance with Regulation (EU) 2024/1624 of the European Parliament and of the Council shall be established.

Amendment 32

Proposal for a regulation

Article 4 – paragraph 3

Text proposed by the Commission

Amendment

3. Before taking a decision to authorise a foreign investment subject to mitigating measures or to prohibit a foreign investment, Member States shall inform the applicant requesting an authorisation and state the reasons on which they intend to take their decision, subject to the protection of information the disclosure of which would be contrary to the security or public order interests of the EU or one or more of the Member States and without prejudice to Union and national law concerning the protection of confidential information. Member States shall give the foreign investor the opportunity to make their views known before taking such decision.

3. Before taking a decision to authorise a foreign investment subject to mitigating measures or to prohibit a foreign investment, Member States shall inform the applicant requesting an authorisation and state the reasons on which they intend to take their decision, subject to the protection of information the disclosure of which would be contrary to the security or public order interests of the EU or one or more of the Member States and without prejudice to Union and national law concerning the protection of confidential information. Member States shall give the foreign investor the opportunity to make their views known and shall take this input into account before taking such decision.

Amendment 33

Proposal for a regulation

Article 4 – paragraph 4 – point b

Text proposed by the Commission

Amendment

(b) is economically active in one of the areas listed in Annex II.

(b) design, develops or produces items or operates an entity of a type listed in Annex II.

Amendment 34

Proposal for a regulation

Article 4 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

4 a. Member States shall ensure that the procedures for determining jurisdiction over a foreign investment filed for authorisation, carrying out an initial review, and conducting, where necessary, an in-depth investigation, shall be completed within a maximum period of 90 days from the date of the filing of the request for authorisation. The screening authority shall finalize its decision within 180 days of receiving the request for authorisation for foreign investments

Member States shall:

(a) align screening deadlines at national level with the Union cooperation mechanism timelines set out in Article 8, providing for:

(i) a period to determine whether it has jurisdiction over a foreign investment and to carry out an initial review not exceeding 30 days from notification;

(ii) where necessary, an in-depth investigation period not exceeding 60 additional days; and

(iii) clear criteria to exceptionally extend these deadlines, without exceeding the overall deadline of 180 days from the notification;

(b) implement standardised procedural milestones including:

(i) formal acknowledgment of complete notification within 5 days;

(ii) clear triggers for moving from initial review to in-depth investigation;

(iii) structured communication points with applicants throughout the process; and

(iv) annual standardised reporting on average processing times and deviations from standard timelines.

Amendment 35

Proposal for a regulation

Article 5 – paragraph 1 – point b – point i a (new)

Text proposed by the Commission

Amendment

(i a) the ownership structure is opaque or unclear, in which case the investment shall be notified as a precaution;

Amendment 36

Proposal for a regulation

Article 7 – paragraph 2 – subparagraph 2

Text proposed by the Commission

Amendment

The Commission may issue an opinion regardless of whether Member States have issued comments.

The Commission may issue an opinion regardless of whether Member States have issued comments. In cases where the investment has been notified pursuant to Article 5(2) due to the ownership structure being opaque or unclear, the Commission shall issue an opinion.

In order to ensure transparency and predictability, opinions of the Commission shall be based on specific and documented risks and shall follow set issuance criteria, including documented security risks or cross-border concerns.

Amendment 37

Proposal for a regulation

Article 9 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall be granted at least 15 months, after the foreign investment has been completed, the right to open the procedure set out in paragraph 1, provided the respective foreign investment has not been notified to the cooperation mechanism in the meantime.

2. Member States shall be granted the right to open the procedure set out in paragraph 1 up to 15 months after the foreign investment has been completed, provided the respective foreign investment has not been notified to the cooperation mechanism in the meantime.

Amendment 38

Proposal for a regulation

Article 9 – paragraph 4

Text proposed by the Commission

Amendment

4. The Commission shall be granted at least 15 months, after the foreign investment has been completed, to open the procedure set out in paragraph 3, provided the respective foreign investment has not been notified to the cooperation mechanism in the meantime.

4. The Commission shall be granted the right to open the procedure set out in paragraph 3 up to 15 months, after the foreign investment has been completed, provided the respective foreign investment has not been notified to the cooperation mechanism in the meantime.

Amendment 39

Proposal for a regulation

Article 9 a (new)

Text proposed by the Commission

Amendment

Article 9a

New Investigations by the Commission

1. The Commission may initiate an investigation at the request of at least three Member States, within 15 months of the completion of a foreign investment that is not subject to an authorisation requirement, provided that the following conditions are met:

(a) there are reasonable grounds to suspect that a foreign investment may affect the security or public order of more than one Member State;

(b) the investment relates to Union projects or programmes listed in Annex I of this Regulation; and

(c) it is unclear which Member State has the authority to conduct the investigation.

2. For new investigations initiated by the Commission under paragraph 1, the screening deadlines and procedural milestones set out in Article 4(4a) shall apply.

3. The Commission shall have the right to:

(a) request information from the Member States concerned, investors and other relevant parties;

(b) carry out inspections in the territories of the Member States where the investment is made;

(c) examine witnesses and experts.

4. For the purposes of this Article, the Commission shall cooperate with national regulatory authorities and other competent authorities.

5. Any request for information shall be duly justified, limited to the information necessary for the Commission to issue an opinion, and proportionate to the purpose of the request.

6. Member States shall, upon request by the Commission, provide all information requested without undue delay and provide full assistance to the investigation.

7. The Commission shall issue a report to state the results of the investigation and adopt recommendations to the Member States concerned.

8. Confidential information obtained in the course of the investigation shall be protected and shall not be disclosed to third parties without appropriate authorisation.

Amendment 40

Proposal for a regulation

Article 10 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1. Member States shall ensure that information provided in the notification referred to in Article 5 and to the request of information referred to in 9(5) include:

1. Member States shall ensure that information provided in the notification referred to in Article 5 and to the request of information referred to in 9(5) include at least:

Amendment 41

Proposal for a regulation

Article 10 – paragraph 1 – point b a (new)

Text proposed by the Commission

Amendment

(b a) risk assessment documentation relating to the investment, to be used to address potential security and public order implications and to propose risk mitigation measures; the risk assessment shall include:

(i) supply chain dependencies;

(ii) market position analysis; and

(iii) third-country dependency evaluation.

Amendment 42

Proposal for a regulation

Article 10 – paragraph 1 – point c

Text proposed by the Commission

Amendment

(c) name and address of the Union target, its activities and alternative providers, the ownership structure of the Union target and, where applicable, of the corporate group to which the Union target is a part;

(c) name and address of the Union target, its activities and alternative providers particularly related to projects and programmes defined in Annex I and areas listed in Annex II, the ownership structure of the Union target and, where applicable, of the corporate group to which the Union target is a part;

Amendment 43

Proposal for a regulation

Article 10 – paragraph 4

Text proposed by the Commission

Amendment

4. Where necessary, the Member State where the foreign investment is planned or has been completed may request the applicant requesting an authorisation or any other relevant undertaking to provide the information referred to in paragraphs 1 and 3. The request for information may concern information necessary for the Member State to determine if any of the conditions set out in Article 5(1) are met. The undertaking concerned shall provide the requested information to the Member State where the foreign investment is planned or has been completed within 15 calendar days of the request.

4. Where necessary, the Member State where the foreign investment is planned or has been completed may request the applicant requesting an authorisation or any other relevant undertaking to provide the information referred to in paragraphs 1 and 3. The request for information may concern information necessary for the Member State to determine if any of the conditions set out in Article 5(1) are met. The undertaking concerned shall provide the requested information to the Member State where the foreign investment is planned or has been completed within 15 calendar days of the request. Any request for information pursuant to this paragraph shall be duly justified, limited to the information necessary for the Member State where the foreign investment is planned or has been completed to determine whether that foreign investment is likely to negatively affect security or public order.

Amendment 44

Proposal for a regulation

Article 13 – paragraph 3 – point a a (new)

Text proposed by the Commission

Amendment

(a a) the security, integrity, functioning and resilience of the internal market;

Amendment 45

Proposal for a regulation

Article 13 – paragraph 3 – point a b (new)

Text proposed by the Commission

Amendment

(a b) the protection and continuity of Services of General Interest and Services of General Economic Interest;

Amendment 46

Proposal for a regulation

Article 13 – paragraph 3 – point b

Text proposed by the Commission

Amendment

(b) the availability of critical technologies;

(b) the availability and uptake of critical technologies, technology security and technology leakage;

Amendment 47

Proposal for a regulation

Article 13 – paragraph 3 – point c

Text proposed by the Commission

Amendment

(c) the continuity of supply of critical inputs;

(c) the continuity of supply of critical inputs, resources or critical services;

Amendment 48

Proposal for a regulation

Article 13 – paragraph 3 – point c a (new)

Text proposed by the Commission

Amendment

(c a) the Union's strategic autonomy and its strategic dependencies;

Amendment 49

Proposal for a regulation

Article 13 – paragraph 3 – point e

Text proposed by the Commission

Amendment

(e) the freedom and pluralism of the media, including online platforms that can be used for large scale disinformation or criminal activities.

(e) the freedom and pluralism of the media, including online and social media platforms that can be used for large scale disinformation or criminal activities.

Amendment 50

Proposal for a regulation

Article 13 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

4 a. When assessing control or influence by a third-country government over an investor, Member States shall consider the following:

(a) direct or indirect ownership thresholds, with heightened scrutiny in cases where:

(i) the third-country government’s ownership or control exceeds 25% of shares or voting rights; or

(ii) the third-country government has special veto powers or other governance rights, irrespective of ownership level.

(b) the nature and extent of third-country government funding, including:

(i) direct capital contributions;

(ii) preferential financing arrangements; and

(iii) state guarantees or subsidies.

(c) specific governance arrangements provided by the third-country government, such as:

(i) rights to board representation;

(ii) special rights to appoint management; and

(iii) rights to access information.

Amendment 51

Proposal for a regulation

Article 14 – paragraph 1 – subparagraph 2

Text proposed by the Commission

Amendment

The screening decision shall comply with the principle of proportionality and take into consideration all circumstances of the foreign investment.

The screening decision shall comply with the principle of proportionality, be based on a genuine and sufficiently serious threat to security or public order and take into consideration all circumstances of the foreign investment

Amendment 52

Proposal for a regulation

Article 14 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

2 a. When the Member State in which the foreign investment is planned or completed decides to withdraw an investment authorisation that has not complied with the mitigating measures, or to adopt additional measures aimed at enforcing the specified mitigating measures in accordance with this paragraph, it shall notify the Member States that submitted observations on this foreign investment within a reasonable timeframe.

Amendment 53

Proposal for a regulation

Article 16 a (new)

Text proposed by the Commission

Amendment

Article 16a

Public Transparency Requirements

1. Member States shall maintain publicly accessible resources including:

a) detailed guidance on screening procedures and timelines referred to in Article 4(4a);

b) sector-specific risk assessment frameworks;

c) templates and documentation requirements.

2. The Commission shall maintain a central portal providing:

a) consolidated guidance on Union-level requirements;

b) links to Member State screening authorities;

c) the annual report referred to in Article 16(2);

Amendment 54

Proposal for a regulation

Article 18 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

1 a. The evaluation shall at least:

a) Analyse impacts on the foreign direct investments in the Union, including the analysis of countries’ structure and trends;

b) Measure the number and value of foreign investments before and after the implementation of this Regulation;

c) Assess the average time taken for screening decisions and the percentage of cases processed within the stipulated deadlines;

d) Analyse the compliance costs of companies, and their comparison with the impact assessment;

e) Review costs and benefits and their comparison with the impact assessment, and the analysis of the deviations;

f) Evaluate how many security threats or risks were identified and mitigated through the screening mechanism;

g) Analyse feedback from businesses regarding the administrative burden, transparency, and predictability of the screening process;

h) Track the percentage of low-risk investments that underwent screening and recommend adjustments to reduce unnecessary scrutiny;

i) Analyse the retaliatory measures in third countries and, if applicable their impact on the consumer and internal market;

j) Measure the number of disputes resolved and the average resolution time to ensure swift outcomes.

1 b The Commission shall gather information for this report using information from relevant and reliable sources such as Unioninstitutions, national competent authorities, and internationally recognised bodies and organisations.

Amendment 55

Proposal for a regulation

Article 19 – paragraph 1

Text proposed by the Commission

Amendment

1. The Commission is empowered to adopt delegated acts in accordance with Article 20 for the purposes of amending, where necessary, the list of projects or programmes of Union interest set out in Annex I to take account of the adoption and amendment of Union law relating to projects or programmes of Union interest relevant to security or public order.

1. The Commission is empowered to adopt delegated acts in accordance with Article 20 for the purposes of amending, where necessary, the list of projects or programmes of Union interest set out in Annex I to take account of the adoption and amendment of Union law relating to projects or programmes of Union interest relevant to security or public order. The Commission shall adopt a delegated act to update Annex I before the entry into force of the 2028-2034 Multiannual Financial Framework to adequately reflect any changes in the projects and programmes of Union Interest.

Amendment 56

Proposal for a regulation

Article 20 – paragraph 2

Text proposed by the Commission

Amendment

2. The power to adopt delegated acts shall be conferred on the Commission for an indeterminate period of time from [date of entry into force of the basic legislative act].

2. The power to adopt delegated acts referred to in Article 19 shall be conferred on the Commission for a period of 5 years from [date of entry into force of the basic legislative act]. The Commission shall draw up a report in respect of the delegation of power not later than 9 months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration unless the European Parliament or the Council opposes such extension not later than 3 months before the end of each period.

Amendment 57

Proposal for a regulation

Article 20 – paragraph 6 a (new)

Text proposed by the Commission

Amendment

6 a. The Commission shall report regularly to the European Parliament and the Council on its secondary legislative activity pursuant to Article 19.

Amendment 58

Proposal for a regulation

Article 21 – paragraph 1

Text proposed by the Commission

Amendment

1. The Commission is empowered to adopt implementing acts setting out the forms to be used to provide the information indicated in Article 10(1).

1. No later than six months before the date of application of this Regulation, the Commission shall adopt implementing acts setting out the forms to be used to provide the information indicated in Article 10(1).

Amendment 59

Proposal for a regulation

Article 22 a (new)

Text proposed by the Commission

Amendment

Article 22 a

Guidelines

1. No later than six months before the date of application of this Regulation, the Commission shall publish guidelines to provide clarity on the interpretation and implementation of “control” and “effective participation in the management by individuals or entities from a non-EU country” in the context of investment screening.

2. No later than six months before the date of application of this Regulation, the Commission shall publish guidelines to support the implementation of mandatory screening and notification procedures especially for start-ups and SMEs.

3. No later than six months before the date of application of this Regulation, the Commission shall publish additional guidelines on initiating own-initiative screening procedures stipulated in Article 4(2)(c). These guidelines shall detail the procedural steps for launching such screenings, including criteria for determining the appropriateness of such procedure and methods for analysing information to assess whether there is substantial evidence indicating that a foreign investment poses a serious risk to security or public order.

4. The guidelines stipulated in paragraphs 1, 2 and 3 shall include best practices for screening authorities to streamline procedures, avoid unnecessary mandatory notifications, and reduce delays and uncertainty for intra-EU and foreign investors, while ensuring the protection of confidential information.

5. The Commission shall ensure these guidelines are regularly updated to reflect changes in the investment landscape and maintain consistency with the principles of better regulation and legal certainty.

Amendment 60

Proposal for a regulation

Annex I – point 7 – paragraph 2

Text proposed by the Commission

Amendment

Regulation (EU) No 1315/2013 of the European Parliament and of the Council of 11 December 2013 on Union guidelines for the development of the trans-European transport network and repealing Decision No 661/2010/EU (OJ L 348, 20.12.2013, p. 1, ELI: http://data.europa.eu/eli/reg/2013/1315/oj).

Regulation (EU) 2024/1679 of the European Parliament and of the Council of 13 June 2024 on Union guidelines for the development of the trans-European transport network, amending Regulations (EU) 2021/1153 and (EU) No 913/2010 and repealing Regulation (EU) No 1315/2013.

Amendment 61

Proposal for a regulation

Annex I – point 20 a (new)

Text proposed by the Commission

Amendment

20 a. The European Defence Industry Programme (EDIP)

Regulation EU […] of the European Parliament and of the Council of […] implementing concrete measures identified in the European Defence Industrial Strategy (EDIS).

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for the opinion received input from the following entities or persons in the preparation of the opinion, prior to the adoption thereof in committee:

Entity and/or person

AEGIS Europe

American Chamber of Commerce to the European Union

Bundesverband der Deutschen Industrie e.V.

Deutsche Industrie- und Handelskammer

DIE FAMILIENUNTERNEHMER

EUROCHAMBRES – Association of European Chambers of Commerce and Industry

European Sea Ports Organisation

General Electric Company

IBM Corporation

Verband Deutscher Maschinen- und Anlagenbau e.V.

European Commission

Permanent Representation of the Federal Republic of Germany to the European Union

The list above is drawn up under the exclusive responsibility of the rapporteur for the opinion.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for the opinion declares that she has submitted to the concerned natural persons the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

The screening of foreign investments in the Union and repealing Regulation (EU) 2019/452 of the European Parliament and of the Council

References

COM(2024)0023 – C9-0011/2024 – 2024/0017(COD)

Committee(s) responsible

INTA

Opinion by

Date announced in plenary

IMCO

25.4.2024

Rapporteur for the opinion

Date appointed

Svenja Hahn

18.9.2024

Discussed in committee

3.12.2024

27.1.2025

Date adopted

18.2.2025

Result of final vote

+:

–:

0:

39

6

3

Members present for the final vote

Peter Agius, Alex Agius Saliba, Pablo Arias Echeverría, Laura Ballarín Cereza, Arno Bausemer, Anna Cavazzini, Henrik Dahl, Dóra Dávid, Adnan Dibrani, Elisabeth Dieringer, Regina Doherty, Klara Dostalova, Kamila Gasiuk-Pihowicz, Hanna Gedin, Sandro Gozi, Maria Grapini, Elisabeth Grossmann, Maria Guzenina, Svenja Hahn, Anna-Maja Henriksson, Virginie Joron, Pierre Jouvet, Arba Kokalari, Katrin Langensiepen, Pierfrancesco Maran, Jorge Martín Frías, Nikola Minchev, Piotr Müller, Denis Nesci, Reinis Pozņaks, Christel Schaldemose, Andreas Schwab, Tomislav Sokol, Dimitris Tsiodras, Inese Vaidere, Kim Van Sparrentak, Marion Walsmann

Substitutes present for the final vote

Marc Angel, Saskia Bricmont, Dirk Gotink, Judita Laššáková, Gaetano Pedulla’, Anna Stürgkh, Ivaylo Valchev, Kosma Złotowski

Members under Rule 216(7) present for the final vote

Irmhild Boßdorf, Romana Jerković, Billy Kelleher

FINAL VOTE BY ROLL CALL BY THE COMMITTEE ASKED FOR OPINION

Key to symbols:

29.1.2025

OPINION OF THE COMMITTEE ON TRANSPORT AND TOURISM

for the Committee on International Trade

on the proposal for a regulation of the European Parliament and of the Council on the screening of foreign investments in the Union and repealing Regulation (EU) 2019/452 of the European Parliament and of the Council

(COM(2024)0023 – C90011/2024 – 2024/0017(COD))

Rapporteur for opinion: Markus Ferber

SHORT JUSTIFICATION

Your Rapporteur for opinion shares the general intention of the European Commission to strengthen the screening of foreign investments in the Union. From the Committee for Transport and Tourism’s (TRAN) perspective, he considers it is of crucial importance that the infrastructure of the Trans-European Network for Transport (TEN-T) and the Connecting Europe Facility (CEF) are protected against investments that have the aim or the potential of pursuing a third country’s policy objective.

Your Rapporteur for opinion considers recent cases of European port infrastructure being entirely or partially sold to Chinese or Russian investors a risk to public order and security that could potentially have been prevented if a stronger European framework, setting common conditions for the screening of such investments, had been in place.

Your Rapporteur for opinion therefore proposes in particular:

 to oblige Member States and the Commission to more explicitly take into account the geopolitical situation, when determining whether an investment is likely to negatively affect security or public order;

 to take full account of the cross-border and network character of TEN-T infrastructure, where each piece of infrastructure is needed for the functioning of the European network as a whole, which makes it evident that there cannot be fundamental differences of appreciation;

 to include the potential risk of influence exerted by third country individuals to security and public order, as seen in another field with the recent takeover of Twitter/X;

 to oblige and enable the Commission to publish a non-classified summary of its opinions when assessing a risk of a foreign investment to the security or public order of more than one Member State. The current situation, where the Commission writes in-depth opinions, but neither their nature (yes/no) nor the broad factual elements that have led to this conclusion are known to the general public, cannot continue.

Your rapporteur for opinion considers that Europe should be a place that is both open to foreign direct investments and the resulting opportunities for our businesses and citizens. However, it should not be naive, when it comes to the influence of autocratic third countries in particular. This should be the main message of TRAN, reflected by the amendments put forward in this opinion in the areas of its competence.

AMENDMENTS

The Committee on Transport and Tourism submits the following to the Committee on International Trade, as the committee responsible:

Amendment 1

Proposal for a regulation

Recital 12

Text proposed by the Commission

Amendment

(12) Screening foreign investments should be carried out in accordance with this Regulation, taking into account all factual information available and adhering to the principle of proportionality and other principles enshrined in the Treaties. Moreover, the screening of foreign investments which are carried out through subsidiaries of the foreign investor established in the Union should in all cases comply with the requirements stemming from Union law, and in particular with the Treaty provisions on freedom of establishment and free movement of capital, as interpreted in the case-law of the Court of Justice of the European Union, consistently with the objective of preserving an open and inclusive internal market. Any restrictions to the freedom of establishment and free movement of capital in the Union, including the screening and measures arising from screening, such as mitigating measures and prohibitions should be based on a genuine and sufficiently serious threat to a fundamental interest of society, and should be appropriate and necessary as set out in the case law of the Court of Justice. At the same time, when assessing the justification and proportionality of a restriction, the specificities of investments within the Union operated through a subsidiary of a foreign investor may be taken into account when assessing any restrictions on freedom of establishment or to the free movement of capital, including where appropriate in any Commission opinion adopted pursuant to this Regulation. This should be done taking into account the integration of Member State schemes into a Union-wide cooperation mechanism.

(12) Screening foreign investments should be carried out in accordance with this Regulation, taking into account all factual information available and adhering to the principle of proportionality and other principles enshrined in the Treaties. Moreover, the screening of foreign investments which are carried out through subsidiaries of the foreign investor established in the Union should in all cases comply with the requirements stemming from Union law, and in particular with the Treaty provisions on freedom of establishment and free movement of capital, as interpreted in the case-law of the Court of Justice of the European Union, consistently with the objective of preserving an open and inclusive internal market. Any restrictions to the freedom of establishment and free movement of capital in the Union, including the screening and measures arising from screening, such as mitigating measures and prohibitions should be based on a genuine and sufficiently serious threat to a fundamental interest of society, and should be appropriate and necessary as set out in the case law of the Court of Justice. Such an approach effectively prevents and addresses the serious risks to public order and security in the Union, while safeguarding the open investment environment of the Union, which is enshrined in the Treaty on the Functioning of the European Union (TFEU) and is crucial for Europe's competitiveness, security and wellbeing. At the same time, when assessing the justification and proportionality of a restriction, the specificities of investments within the Union operated through a subsidiary of a foreign investor may be taken into account when assessing any restrictions on freedom of establishment or to the free movement of capital, including where appropriate in any Commission opinion adopted pursuant to this Regulation. This should be done taking into account the integration of Member State schemes into a Union-wide cooperation mechanism.

Amendment 2

Proposal for a regulation

Recital 17

Text proposed by the Commission

Amendment

(17) Greenfield foreign investments occur where the foreign investor or a foreign investor’s subsidiary in the Union sets up new facilities or a new undertaking in the Union. Greenfield foreign investments should fall within the scope of this Regulation to the extent they are considered relevant by a Member State for the purpose of the screening of foreign investments because they create lasting and direct links between a foreign investor and such facilities or such undertakings. In addition, by setting up new facilities, a foreign investor can impact on security and public order, including when that risk concerns essential economic inputs. Member States are therefore encouraged to include greenfield foreign investments in the scope of transactions covered by their screening mechanisms, in particular when such investments occur in sectors relevant to their security or public order or when they present characteristics such as size or essential nature to be relevant to their security or public order.

(17) Greenfield foreign investments occur where the foreign investor or a foreign investor’s subsidiary in the Union sets up new facilities or a new undertaking in the Union. Greenfield foreign investments should fall within the scope of this Regulation to the extent they create lasting and direct links between a foreign investor and such facilities or such undertakings. In addition, by setting up new facilities, a foreign investor can impact on security and public order, including when that risk concerns essential economic inputs. Member States should include greenfield foreign investments in the scope of transactions covered by their screening mechanisms, in particular when such investments occur in sectors relevant to their security or public order or when they present characteristics such as size or essential nature to be relevant to their security or public order.

Amendment 3

Proposal for a regulation

Recital 25

Text proposed by the Commission

Amendment

(25) Furthermore, it should be possible for the Commission to adopt an opinion addressed to all Member States if it identifies several foreign investments that, taken together, are likely to impact the security or public order of the Union. This could notably be the case where several foreign investments present comparable characteristics. These include where the foreign investments are made by the same foreign investor, or foreign investors presenting similar risks, or where several foreign investments concern the same target or the same infrastructure, including trans-European infrastructure for transport, energy and communication. Member States and the Commission should discuss the risk analysis and the possible ways to address the risks identified in the opinion.

(25) Furthermore, it should be possible for the Commission to adopt an opinion addressed to all Member States if it identifies several foreign investments that, taken together, are likely to impact the security or public order of the Union. This could notably be the case where several foreign investments present comparable characteristics. These include where the foreign investments are made by the same foreign investor, or foreign investors presenting similar risks, or where several foreign investments concern the same target or the same infrastructure, including trans-European infrastructure for transport, energy and communication, which are vital for the proper functioning of European economies and societies and for ensuring European strategic autonomy. Member States and the Commission should discuss the risk analysis and the possible ways to address the risks identified in the opinion.

Amendment 4

Proposal for a regulation

Recital 26 a (new)

Text proposed by the Commission

Amendment

(26a) To avoid unnecessarily prolonged periods of uncertainty for investors and EU stakeholders, it is important to urge national screening authorities to finalize their screening procedures and decisions within 180 calendar days of receiving the request for authorisation for foreign investments.

Amendment 5

Proposal for a regulation

Recital 27

Text proposed by the Commission

Amendment

(27) For greater clarity, the list of projects or programmes of Union interest should be listed in Annex I. These should include any foreign investments undertaken on the trans-European networks for transport, energy and communication, as well as programmes providing funding for research and development for activities relevant for the security or public order of the Union. Due to the importance of these projects and programmes for the security and public order of the Union, Member States should screen foreign investments into Union undertakings that are part of or participating in these projects or programmes, including those that receive funding from the Union.

(27) For greater clarity, the list of projects or programmes of Union interest should be listed in Annex I. These should include any foreign investments undertaken on the trans-European networks for transport, energy and communication, as well as programmes providing funding for research and development for activities relevant for the security or public order of the Union. Due to the importance of these projects and programmes for the security and public order of the Union, and due to their inherent cross-border nature and network character, which implies that the functioning of each individual piece of infrastructure in each individual Member State is essential for the functioning and connectivity of the European network as a whole, Member States should screen foreign investments undertaken into those networks or into Union undertakings that are part of or participating in these projects or programmes, including those that receive funding from the Union.

Amendment 6

Proposal for a regulation

Recital 31 a (new)

Text proposed by the Commission

Amendment

(31a) Without prejudice to the cooperation mechanism, there is a need to raise awareness of the participation or contribution of undertakings from third countries in projects of common interest or in critical infrastructure which is strategic for the Union, in order to allow for intervention by public authorities if such participation or contribution is likely to affect security or public order in the Union and does not fall within the scope of this Regulation. Member States may make observations to other Member States as well as to the Commission. Where appropriate, the Commission may request additional information and follow up the situation.

Amendment 7

Proposal for a regulation

Recital 35

Text proposed by the Commission

Amendment

(35) To ensure a consistent approach to the screening of investments across the Union, it is essential that the standards and criteria used to assess likely risks to security and public order are those set at Union level in this Regulation. Those should include the impact on the security, integrity and functioning of critical infrastructure, the availability of critical technologies (including key enabling technologies) and the continued supply of critical inputs for security or public order, the disruption, failure, loss or destruction of which would have a significant impact on security and public order in one or more Member States or on the Union as a whole. In that regard, Member States and the Commission should also take into account the context and circumstances of the foreign investment. This should include, in particular, whether an investor is controlled directly or indirectly, for example through significant funding, by the government of a third country or is involved in pursuing policy objectives of third countries to facilitate their military capabilities. In this context, if applicable, Member States and the Commission should also consider why the foreign investor, its beneficial owner or any of its subsidiaries or a person acting on behalf or at the direction of such a foreign investor is subject to any type of Union restrictive measures pursuant to Article 215 TFEU.

(35) To ensure a consistent approach to the screening of investments across the Union, it is essential that the standards and criteria used to assess likely risks to security and public order are those set at Union level in this Regulation. Those should include the impact on the security, integrity and functioning of critical infrastructure, the availability of critical technologies (including key enabling technologies) and the continued supply of critical inputs for security or public order, the disruption, failure, loss or destruction of which would have a significant impact on security and public order in one or more Member States or on the Union as a whole. In that regard, Member States and the Commission should also take into account the context and circumstances of the foreign investment, and the current geopolitical situation. This should include, in particular, whether an investor is controlled directly or indirectly, for example through significant funding, by the government or an individual of a third country or is involved in pursuing policy objectives of third countries to facilitate their military capabilities. In this context, if applicable, Member States and the Commission should also consider why the foreign investor, its beneficial owner or any of its subsidiaries or a person acting on behalf or at the direction of such a foreign investor is subject to any type of Union restrictive measures pursuant to Article 215 TFEU.

Amendment 8

Proposal for a regulation

Recital 41 a (new)

Text proposed by the Commission

Amendment

(41a) While the confidentiality of most sensitive information should be ensured, the interest of the general public to be informed of at least the essence (yes/no) of the Commission’s opinion pursuant to Article 7 and the main lines of reasoning that have led to this opinion, should also be respected. The Commission should therefore prepare a non-classified summary of its opinion and make it publicly available.

Amendment 9

Proposal for a regulation

Recital 49

Text proposed by the Commission

Amendment

(49) In order to take into account developments relating to projects or programmes of Union interest and to adapt the list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amendments to the Annexes to this Regulation. The list of projects and programmes of Union interest set out in Annex I should cover projects or programmes covered by EU law which provide for the development, maintenance or acquisition of critical infrastructure, critical technologies or critical inputs which are essential for security or public order. The list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union set out in Annex II should include areas where a foreign investment may affect security or public order in more than one Member State or in the Union as a whole through an Union target, which does not participate in or receive funds from a project or programme of Union interest. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making16 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(49) In order to take into account developments relating to projects or programmes of Union interest and to adapt the list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amendments to the Annexes to this Regulation. The list of projects and programmes of Union interest set out in Annex I should cover projects or programmes covered by EU law which provide for the development, maintenance or acquisition of critical infrastructure, critical technologies or critical inputs which are essential for security or public order. The list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union set out in Annex II should include areas where a foreign investment may affect security or public order in more than one Member State or in the Union as a whole through an Union target, which does not participate in or receive funds from a project or programme of Union interest. The Commission should in particular update Annex I in case of new Multiannual Financial Frameworks implying changes to the projects and programmes of Union interest. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making 16 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

__________________

16 OJ L 123, 12.5.2016, p. 1.

Amendment 10

Proposal for a regulation

Article 3 – paragraph 1

Text proposed by the Commission

Amendment

1. Member States shall establish a screening mechanism in accordance with this Regulation.

1. Member States shall without delay establish a screening mechanism in accordance with this Regulation.

Amendment 11

Proposal for a regulation

Article 4 – paragraph 2 – point b a (new)

Text proposed by the Commission

Amendment

(ba) the screening authority shall finalize its screening procedure and decision within 180 calendar days of receiving the request for authorisation for foreign investments;

Amendment 12

Proposal for a regulation

Article 4 – paragraph 4 – introductory part

Text proposed by the Commission

Amendment

4. Member States shall ensure that their screening mechanisms impose an authorisation requirement for foreign investments where the Union target established in their territory:

4. Member States shall ensure that their screening mechanisms impose an authorisation requirement for foreign investments where the Union target is established or is to be established in their territory:

Amendment 13

Proposal for a regulation

Article 5 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1. Member States shall notify the Commission and the other Member States through the cooperation mechanism of any foreign investment in a Union target established in their territory that:

1. Member States shall notify the Commission and the other Member States through the cooperation mechanism of any foreign investment in a Union target that is established or is to be established in their territory that:

Amendment 14

Proposal for a regulation

Article 5 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall notify the Commission and the other Member States of any foreign investment in a Union target established in their territory where they initiate an in-depth investigation under their screening procedures. Furthermore, Member States shall notify the Commission and the other Member States of any foreign investment in a Union target established in their territory, in exceptional cases, where they intend to impose a mitigating measure or to prohibit the transaction without an in-depth investigation.

2. Member States shall notify the Commission and the other Member States of any foreign investment in a Union target that is established or is to be established in their territory where they initiate an in-depth investigation under their screening procedures. Furthermore, Member States shall notify the Commission and the other Member States of any foreign investment in a Union target that is established or is to be established in their territory, in exceptional cases, where they intend to impose a mitigating measure or to prohibit the transaction without an in-depth investigation.

Amendment 15

Proposal for a regulation

Article 5 – paragraph 3 – subparagraph 1

Text proposed by the Commission

Amendment

Member States may notify any foreign investment that do not meet the conditions set out in paragraphs 1 and 2 if the Member State where the Union target is established considers that a foreign investment could be of interest to the other Member States and the Commission from a security or public order perspective, including where the Union target has significant operations in other Member States, or belongs to a corporate group that has several companies in different Member States which are economically active in one of the areas listed in Annex II.

Member States shall notify any foreign investment that do not meet the conditions set out in paragraphs 1 and 2 if the Member State where the Union target is established or is to be established considers that a foreign investment could be of interest to the other Member States and the Commission from a security or public order perspective, including where the Union target has significant operations in other Member States, or belongs to a corporate group that has several companies in different Member States which are economically active in one of the areas listed in Annex II.

Amendment 16

Proposal for a regulation

Article 7 – paragraph 1 – subparagraph 1 – point a

Text proposed by the Commission

Amendment

(a) considers that a foreign investment is likely to negatively affect its security or public order; or

(a) considers that a foreign investment in its territory is likely to negatively affect its or the Union's security or public order; or

Amendment 17

Proposal for a regulation

Article 7 – paragraph 2 – subparagraph 1 – introductory part

Text proposed by the Commission

Amendment

The Commission may issue a duly motivated opinion addressed to the notifying Member State via the secure and encrypted system referred to in Article 12(4). The Commission may issue such an opinion if:

The Commission may issue a duly motivated opinion addressed to the notifying Member State via the secure and encrypted system referred to in Article 12(4). The Commission shall issue such an opinion if:

Amendment 18

Proposal for a regulation

Article 7 – paragraph 3

Text proposed by the Commission

Amendment

3. The Commission may issue a duly motivated opinion addressed to all Member States if it considers that several foreign investments or other similar investments if they were to be made, taken together, and having regard to their characteristics could affect the security or public order of the Union. After a Commission opinion is issued, the Commission may, as appropriate, discuss with Member States how to address the identified risks.

3. The Commission shall issue a duly motivated opinion addressed to all Member States if it considers that a foreign investment or several similar investments if they were to be made, taken together, and having regard to their characteristics could affect the security or public order of the Union. After a Commission opinion is issued, the Commission shall, as appropriate, discuss with Member States how to address the identified risks and shall monitor the implementation of any actions taken.

Amendment 19

Proposal for a regulation

Article 7 – paragraph 11

Text proposed by the Commission

Amendment

11. When issuing comments or an opinion pursuant to this Article, the Member States, and the Commission, as the case may be, shall consider whether such comments or opinion should be classified information and what level of classification should apply thereto, in accordance with Union and the respective national law on classified information.

11. When issuing comments or an opinion pursuant to this Article, the Member States, and the Commission, as the case may be, shall consider whether and which parts of such comments or opinion should be classified information and what level of classification should apply thereto, in accordance with Union and the respective national law on classified information.

Amendment 20

Proposal for a regulation

Article 7 – paragraph 11 a (new)

Text proposed by the Commission

Amendment

11a. When an opinion issued by the Commission pursuant to this Article contains classified information, the Commission shall prepare a non-classified summary and make it available to the general public.

Amendment 21

Proposal for a regulation

Article 8 – paragraph 8

Text proposed by the Commission

Amendment

8. Where, due to exceptional circumstances, the notifying Member State considers that its security or public order requires issuing a screening decision before the deadlines referred to in paragraph 3 expire, it shall notify the other Member States and the Commission of its intention and duly justify the need for immediate action. The other Member States and the Commission shall provide comments or issue an opinion expeditiously. This procedure shall not be invoked to serve purely the commercial interests of the applicant requesting the authorisation.

8. Where, due to exceptional circumstances, the notifying Member State considers that its security or public order requires issuing a screening decision before the deadlines referred to in paragraph 3 expire, it shall notify the other Member States and the Commission of its intention and duly justify the need for immediate action. The other Member States and the Commission shall provide comments or issue an opinion expeditiously. This procedure shall not be invoked to serve purely or mainly the commercial interests of the applicant requesting the authorisation.

Amendment 22

Proposal for a regulation

Article 12 – paragraph 4

Text proposed by the Commission

Amendment

4. The Commission shall provide a secure and encrypted system to support the exchange of information between the contact points.

4. The Commission shall provide a secure and encrypted system, based on European technologies, to support the exchange of information between the contact points.

Amendment 23

Proposal for a regulation

Article 13 – paragraph 1

Text proposed by the Commission

Amendment

1. Member States shall determine, for the purposes of taking a screening decision pursuant to Article 14 or issuing a duly motivated comment pursuant to Article 7(1) or Article 9(7), whether a foreign investment is likely to negatively affect security or public order.

1. Member States shall determine, for the purposes of taking a screening decision pursuant to Article 14 or issuing a duly motivated comment pursuant to Article 7(1) or Article 9(7), whether a foreign investment is likely to negatively affect security or public order. This shall be done efficiently within a reasonable period of time in order to avoid uncertainty for the investor and the investment receiver.

Amendment 24

Proposal for a regulation

Article 13 – paragraph 4 – point e

Text proposed by the Commission

Amendment

(e) whether the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of the foreign investor is likely to pursue a third country’s policy objectives, or facilitate the development of a third country’s military capabilities.

(e) whether the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of the foreign investor is likely to pursue a third country’s or a third country's citizen’s policy objectives, or facilitate the development of a third country’s military capabilities, or asymmetrically strengthen a third country’s position vis-à-vis a Member State, several Member States or the Union as a whole.

Amendment 25

Proposal for a regulation

Article 13 – paragraph 4 – point e a (new)

Text proposed by the Commission

Amendment

(ea) whether the existence of a geopolitical situation of particular importance for the security or public order of the Union has to be taken into account.

Amendment 26

Proposal for a regulation

Article 14 – paragraph 1 – subparagraph 1 – introductory part

Text proposed by the Commission

Amendment

Where, taking into account the criteria laid down in Article 13 and, where applicable, in the light of comments provided by other Member States pursuant to Article 7(1) or Article 9(7), or an opinion provided by the Commission pursuant to Article 7(2) or (3) or Article 9(7), the Member State in which the foreign investment is planned or completed concludes that the foreign investment is likely to negatively affect security or public order in one or more Member States, including where a project or programme of Union interest is concerned, it shall issue a screening decision to:

Where, taking into account the criteria laid down in Article 13 and, where applicable, in the light of comments provided by other Member States pursuant to Article 7(1) or Article 9(7), or an opinion provided by the Commission pursuant to Article 7(2) or (3) or Article 9(7), the Member State in which the foreign investment is planned or completed concludes that the foreign investment is likely to negatively affect security or public order in one or more Member States, including where a project or programme of Union interest is concerned, it shall issue a screening decision as efficiently and swiftly as possible within a reasonable timeframe to:

Amendment 27

Proposal for a regulation

Article 19 – paragraph 2 – point e

Text proposed by the Commission

Amendment

(e) the emergence of a geopolitical situation of particular importance for security or public order of the Union.

(e) the emergence of a new geopolitical situation of particular importance for security or public order of the Union.

Amendment 28

Proposal for a regulation

Article 24 – paragraph 2

Text proposed by the Commission

Amendment

It shall apply from [date: 15 months after entry into force].

It shall apply from [date: 12 months after entry into force].

Amendment 29

Proposal for a regulation

Annex I – point 7 – paragraph 2

Text proposed by the Commission

Amendment

Regulation (EU) No 1315/2013 of the European Parliament and of the Council of 11 December 2013 on Union guidelines for the development of the trans-European transport network and repealing Decision No 661/2010/EU (OJ L 348, 20.12.2013, p. 1, ELI: http://data.europa.eu/eli/reg/2013/1315/oj).

All transport infrastructure and services under the scope of Regulation (EU) 2024/1679 of the European Parliament and of the Council of 13 June 2024 on Union guidelines for the development of the trans-European transport network, amending Regulations (EU) 2021/1153 and (EU) No 913/2010 and repealing Regulation (EU) No 1315/2013 (Text with EEA relevance).

Amendment 30

Proposal for a regulation

Annex II – point 3 – point e a (new)

Text proposed by the Commission

Amendment

ea. Transport industries, technologies and infrastructure components of critical importance:

- Aerospace manufacturing industry, including the production, maintenance and operation of aircraft, as well as their engines, propellers, parts, non-installed equipment and equipment1a

- Maritime technology industry, including, production, maintenance and conversion of all types of ships1b and equipment1c

- Rail industry, including all aspects of design, manufacturing, maintenance and refurbishment of rail transport systems, subsystems and related equipment1d

- Automotive industry, including automotive suppliers, 1e refuelling infrastructure, including electric charging infrastructure1f and intelligent transport systems (ITS) 1g

__________________

1a Article 2.1 (a) (b) Regulation (EU) 2018/1139 of the European Parliament and of the Council of 4 July 2018 on common rules in the field of civil aviation and establishing a European Union Aviation Safety Agency, and amending Regulations (EC) No 2111/2005, (EC) No 1008/2008, (EU) No 996/2010, (EU) No 376/2014 and Directives 2014/30/EU and 2014/53/EU of the European Parliament and of the Council, and repealing Regulations (EC) No 552/2004 and (EC) No 216/2008 of the European Parliament and of the Council and Council Regulation (EEC) No 3922/91 (Text with EEA relevance.)

1b Article 12 (a, b, c) Framework of State Aid to Shipbuilding O2011/C 364/06)

1c Article 2 (1) Directive 2014/90/EU of the European Parliament and of the Council of 23 July 2014 on marine equipment and repealing Council Directive 96/98/EC Text with EEA relevance

1d Annex II Directive (EU) 2016/797 of the European Parliament and of the Council of 11 May 2016 on the interoperability of the rail system within the European Union (recast)

1e Industries responsible for the production of all categories of self-propelled road-vehicles (including passenger cars, buses, motor cycles, vans, trucks), together with their equipment and parts, falling inter alia under Chapters 40, 84, 85, 87, 90 and 94 of the Harmonised System Nomenclature issued by the World Custom Organisation (HS 2017)

1f Article 2 (17) (21) (48) (49) (50) (51) (52) (53) (56) (59) of Regulation (EU) 2023/1804 of the European Parliament and of the Council of 13 September 2023 on the deployment of alternative fuels infrastructure, and repealing Directive 2014/94/EU

1g Article 4 (1)of Directive 2010/40/EU of the European Parliament and of the Council of 7 July 2010 on the framework for the deployment of Intelligent Transport Systems in the field of road transport and for interfaces with other modes of transport

Amendment 31

Proposal for a regulation

Annex II – point 3 – point g – introductory part

Text proposed by the Commission

Amendment

g. Space & propulsion technologies:

g. Space, propulsion and transport technologies:

Amendment 32

Proposal for a regulation

Annex II – point 3 – point g – indent 5

Text proposed by the Commission

Amendment

– Propulsion technologies, including hypersonics and components for military use

– Propulsion technologies, including hypersonics and components for military use and electric propulsion technologies

Amendment 33

Proposal for a regulation

Annex II – point 3 – point g – indent 5 a (new)

Text proposed by the Commission

Amendment

– Operational technologies for all transport modes, such as signalling systems, traffic management systems and safety related technologies

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for the opinion received input from the following entities or persons in the preparation of the opinion, prior to the adoption thereof in committee:

Entity and/or person

Insurance Europe

German Federal Ministry of Finance

Committee of the Regions

European Commission

American Chamber of Commerce to the European Union

European Sea Ports Organisation

GE Aerospace

Airbus SAS

UNIFE – The European Rail Supply Industry Association

The list above is drawn up under the exclusive responsibility of the rapporteur for the opinion.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for the opinion declares that he has submitted to the concerned natural persons the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

The screening of foreign investments in the Union and repealing Regulation (EU) 2019/452 of the European Parliament and of the Council

References

COM(2024)0023 – C9-0011/2024 – 2024/0017(COD)

Committee(s) responsible

INTA

Opinion by

Date announced in plenary

TRAN

25.4.2024

Rapporteur for the opinion

Date appointed

Markus Ferber

16.9.2024

Date adopted

29.1.2025

Result of final vote

+:

–:

0:

37

4

1

Members present for the final vote

Oihane Agirregoitia Martínez, Daniel Attard, Tom Berendsen, Rachel Blom, Nikolina Brnjac, Nina Carberry, Benoit Cassart, Carlo Ciccioli, Anna Maria Cisint, Vivien Costanzo, Johan Danielsson, Valérie Devaux, Siegbert Frank Droese, Gheorghe Falcă, Jens Gieseke, Borja Giménez Larraz, Sérgio Gonçalves, Roman Haider, Sérgio Humberto, Dariusz Joński, François Kalfon, Martine Kemp, Sophia Kircher, Luis-Vicențiu Lazarus, Julien Leonardelli, Vicent Marzà Ibáñez, Alexandra Mehnert, Ştefan Muşoiu, Jan-Christoph Oetjen, Philippe Olivier, Matteo Ricci, Rosa Serrano Sierra, Stanislav Stoyanov, Kai Tegethoff, Elissavet Vozemberg-Vrionidi, Kosma Złotowski

Substitutes present for the final vote

Alberico Gambino, Jutta Paulus, Dario Tamburrano, Kris Van Dijck, Ana Vasconcelos

Members under Rule 216(7) present for the final vote

Elisabeth Grossmann

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

Key to symbols:

PROCEDURE – COMMITTEE RESPONSIBLE

Title

The screening of foreign investments in the Union and repealing Regulation (EU) 2019/452 of the European Parliament and of the Council

References

COM(2024)0023 – C9-0011/2024 – 2024/0017(COD)

Date submitted to Parliament

25.1.2024

Committee(s) responsible

INTA

Committees asked for opinions

Date announced in plenary

ECON

25.4.2024

ITRE

25.4.2024

IMCO

25.4.2024

TRAN

25.4.2024

Rapporteurs

Date appointed

Raphaël Glucksmann

30.9.2024

Discussed in committee

29.1.2025

Date adopted

8.4.2025

Result of final vote

+:

–:

0:

31

7

3

Members present for the final vote

Christophe Bay, Brando Benifei, Lynn Boylan, Daniel Caspary, Andi Cristea, Raphaël Glucksmann, Markéta Gregorová, Bart Groothuis, Enikő Győri, Svenja Hahn, Karin Karlsbro, Martine Kemp, Rudi Kennes, Rihards Kols, Sebastian Kruis, Bernd Lange, Ilia Lazarov, Miriam Lexmann, Jaak Madison, Thierry Mariani, Gabriel Mato, Javier Moreno Sánchez, Ştefan Muşoiu, Majdouline Sbai, Lukas Sieper, Dominik Tarczyński, Francesco Torselli, Inese Vaidere, Kathleen Van Brempt, Marie-Pierre Vedrenne, Catarina Vieira, Jörgen Warborn, Iuliu Winkler, Bogdan Andrzej Zdrojewski, Juan Ignacio Zoido Álvarez

Substitutes present for the final vote

Dan Barna, Markus Buchheit, Branislav Ondruš, Jessika Van Leeuwen

Members under Rule 216(7) present for the final vote

Mélanie Disdier, Jens Geier

Date tabled

10.4.2025

FINAL VOTE BY ROLL CALL BY THE COMMITTEE RESPONSIBLE

Key to symbols:

On the proposal for a regulation of the European Parliament and of the Council on the screening of foreign investments in the Union and repealing Regulation (EU) 2019/452 of the European Parliament and of the Council

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

OPINION OF THE COMMITTEE ON ECONOMIC AND MONETARY AFFAIRS

OPINION OF THE COMMITTEE ON INDUSTRY, RESEARCH AND ENERGY

OPINION OF THE COMMITTEE ON THE INTERNAL MARKET AND CONSUMER PROTECTION

OPINION OF THE COMMITTEE ON TRANSPORT AND TOURISM

PROCEDURE – COMMITTEE RESPONSIBLE

FINAL VOTE BY ROLL CALL BY THE COMMITTEE RESPONSIBLE