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
ECON-AD-765288
Committee on Economic and Monetary Affairs · Rapporteur: Markus Ferber
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.
The committee opinion amends the proposed regulation on screening foreign investments, extending its scope to investments with foreign control and involving financial authorities.¶¶¶ It excludes resolution actions from screening, shortens deadlines, and requires reviews of annexes every two years instead of delegated acts.¶¶¶
Committee position. The Committee on Economic and Monetary Affairs proposes amendments to extend the regulation's scope to investments with foreign control, involve financial authorities, exclude resolution actions, and replace delegated acts with regular reviews.¶¶¶
Key points
- Excludes acquisitions through resolution tools for banks, central counterparties, and reinsurance undertakings from the regulation's scope.¶¶
- Extends cooperation mechanism to investments within the Union where the investor is controlled by a foreign entity, regardless of ultimate owner location.¶
- Requires Member States to consult or inform regional authorities when screening foreign investments.¶
- Defines 'control' as per the EU Merger Regulation and includes all situations of control acquisition in the definition of investment with foreign control.¶¶¶
- Adds criteria for mandatory screening: investments from countries on the EU tax non-cooperative list or linked to sanctioned countries.¶¶
- Gives the European Central Bank, European Supervisory Authorities, and Single Supervisory Mechanism a formal role in screening financial sector investments.¶¶¶
- Shortens deadlines for comments and opinions: 30 days instead of 35, and 15 instead of 20 for additional information; removes suspension between 25 December and 1 January.¶¶¶
- Extends the period for own-initiative screening from 15 to 18 months after completion of the investment.¶¶¶
- Requires the Commission to take into account opinions from financial authorities when drafting its own opinions.¶¶
- Adds protection of financial and economic stability of the Union as a factor in assessing risks to security or public order.¶
- Replaces delegated acts with regular reviews of annexes by the co-legislator every two years, and requires impact assessments for review proposals.¶¶¶
- Adds the Critical Raw Materials Act to Annex I and specifies financial entities in Annex II.¶¶
Who is affected
- Foreign investors and their Union subsidiaries face extended screening scope and new criteria based on sanctioned or tax non-cooperative countries.¶¶¶
- Financial sector entities, including central counterparties, payment systems, and issuers of asset-referenced tokens, are subject to screening with input from EU financial authorities.¶¶
- Resolution authorities are exempt from screening procedures for resolution actions, ensuring timely responses to financial stability risks.¶¶
Figures and deadlines
- 18 months after completion of a foreign investment for own-initiative screening by Member States and the Commission.¶¶¶
- 30 calendar days for comments or opinions after complete notification, reduced from 35.¶¶
- 15 calendar days for comments after additional information, reduced from 20.¶
- 24 months from date of application for first review of annexes, then every 24 months.¶¶
- 12 months from entry into force for application of the regulation, instead of 15.¶¶¶