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

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

A-10-2025-0061

Committee on International Trade · Rapporteur: Raphaël Glucksmann

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Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

Parliament's amended version of the proposed regulation on screening foreign investments sets up a Union framework for Member States to screen foreign investments on grounds of security or public order, including economic security, and a cooperation mechanism for Member States and the Commission. It requires all Member States to have screening mechanisms, harmonises key elements, and sets conditions for authorisation, including for greenfield investments above EUR 250 million. It strengthens the cooperation mechanism, gives the Commission powers to investigate and, in cases of disagreement, to adopt decisions authorising with conditions or prohibiting investments. It excludes resolution tools and internal restructurings from scope, establishes a secure encrypted system and a single portal for filings, and requires the Commission to publish guidelines and reports.

Committee position. The Committee on International Trade proposes to amend the Commission's proposal substantially, broadening the scope, strengthening the Commission's role, and adding detailed procedural rules.

Key points

  1. Defines 'foreign investment' broadly to include investments by a foreign investor or through its subsidiary, and adds definitions for greenfield investment, resolution tool, internal restructuring, beneficial owner, opaque ownership structure, and host Member State.
  2. Requires Member States to establish screening mechanisms and notify the Commission; mechanisms must include an initial review of no more than 35 calendar days, possible in-depth investigation, and powers to screen greenfield investments.
  3. Requires authorisation for investments in Union targets that are part of projects or programmes of Union interest or active in sensitive areas listed in Annex II, and for greenfield investments meeting certain conditions and valued at least EUR 250 million.
  4. Mandates notification to the cooperation mechanism for investments meeting conditions such as government control, subject to Union restrictive measures, prior non-authorisation, or opaque ownership; also requires notification when an in-depth investigation is initiated.
  5. Sets deadlines for notifications: within 15 calendar days of receiving a complete request for authorisation, or within 5 calendar days of initiating an in-depth investigation.
  6. For multi-country transactions, applicants must file in all relevant Member States within 3 calendar days of the first filing, and Member States must coordinate and align timelines.
  7. Allows Member States to issue comments and requires the Commission to issue opinions on notified investments; the host Member State must give utmost consideration and transmit its draft decision with a written explanation.
  8. Empowers the Commission to adopt a decision authorising with conditions or prohibiting the investment if the host Member State's draft decision does not adequately mitigate risks; the host Member State must then terminate its procedure.
  9. Sets detailed deadlines for comments, opinions, consultations, and decisions, including extensions for negotiating mitigating measures.
  10. Allows Member States and the Commission to open own-initiative procedures for non-notified investments within 15 months of completion, and grants the Commission investigative powers to request information from parties and other entities.
  11. Requires the Commission to establish a secure encrypted system and a single portal for electronic filing, and to develop a business intelligence capability to support screening authorities.
  12. Lists factors to consider when assessing risk, including impact on critical infrastructure, military facilities, internal market, critical technologies, supply chains, food security, strategic dependencies, financial stability, essential services, sensitive information, media freedom, and economic coercion.

Who is affected

  • Foreign investors and their subsidiaries in the Union: must seek authorisation for certain investments, comply with screening decisions, and may face penalties for non-compliance.
  • Member States: must establish and operate screening mechanisms, notify investments, participate in cooperation, and comply with Commission decisions.
  • Union targets in sensitive sectors (e.g., semiconductors, AI, energy, transport, media, critical raw materials): may be subject to screening and conditions.
  • Applicants in multi-country transactions: must file in all relevant Member States within 3 calendar days.
  • Undertakings in resolution: excluded from scope, but resolution authorities should consider the regulation when involving foreign investors.

Figures and deadlines

  • EUR 250 million: threshold for mandatory screening of greenfield investments.
  • 35 calendar days: maximum for initial review.
  • 15 months: period after completion to start own-initiative screening or open procedure.
  • 15 calendar days: deadline for notification after receiving complete request for authorisation.
  • 5 calendar days: deadline for notification after initiating in-depth investigation.
  • 3 calendar days: deadline for filing in all relevant Member States in multi-country transactions.
  • 12 months: period after entry into force for application of the regulation.
  • 10,000 hectares: threshold for farmland to be considered critical in Annex II.

Legal basis: Articles 114 and 207 of the Treaty on the Functioning of the European Union