New screening rules for foreign investment in the EU

New screening rules for foreign investment in the EU   Press Releases   INTA   30 minutes ago     Identifying and addressing security risks relating to foreign investment   Mandatory screening for more sectors   European Commission to be able to act on its own initiative   On Tuesday, the International Trade Committee adopted revised rules for screening foreign investments in the EU. Under the new rules, more sectors, such as media services, critical raw materials and transport infrastructure, will be subject to mandatory screening by Member States, in order to identify and address foreign investment-related security or public order risks. The procedures applicable to national screening mechanisms will also be harmonised and the Commission will have the power to intervene on its own initiative or where there are disagreements between Member States about potential security or public order risks emanating from a specific foreign investment. If the screening authority finds that the planned foreign investment project is likely to have a negative effect on security or public order, it will either have to authorise the project subject to mitigating measures, or prohibit it. The proposal was adopted by 31 votes in favour, 9 against and with 3 abstentions. Background The current foreign direct investment screening framework entered into force on 11 October 2020. It responded to growing concerns about certain foreign investors seeking to acquire control of EU...