On 11 December 2025 a provisional political agreement was reached to replace the EU’s FDI Screening Regulation with a new Regulation on Foreign Investments Screening (‘the proposal’).

Formal adoption of the new Regulation is expected in April or May with the new rules likely to take effect sometime next year.

Since the proposal was first tabled in January 2024 the EU’s focus on “strategic autonomy” has sharpened further, reflected in the mandatory measures incl.:

·        Requiring all Member States to establish an FDI screening regime. 

·        Establishing a common minimum scope for national screening in specific sensitive sectors (military items, dual-use items, AI, semiconductors, quantum), critical infrastructure (energy, transport), critical raw materials and critical financial entities.

·        Expanding screening to EU-based companies that are ultimately owned or controlled by non-EU entities to prevent circumvention.

·        Enhanced cooperation, information sharing and reporting between EU countries and the Commission.

Recent geopolitical developments are only likely to increase the slow but steady convergence in FDI screening analysis and practice across the EU.

Participants in this 'Chatham House rule' in-person / webinar discussion with Damien Levie  (including unscripted audience Q&As) will increase their knowledge of how once it is in force the proposal will sit with the EU’s new Economic Security Strategy and industrial policy and along with anticipated other Commission proposals or policy adjustments it is likely to affect the success of their clients’ future deals.

[New Foreign Investment Screening Regulation - once available] 

European Council's press release (11.12.25)

European Parliament's press release (11.12.25)

Joint Communication on strengthening Economic Security (03.12.25)

Memo on European Economic Security (24.01.24)

New tools to reinforce the EU’s economic security (24.01.24)

'Three M&A obstacles outside Brussels: managing EUMR, FSR and FDI risks' Brussels Matters (05.06.24)