|Author (Corporate)||Council of the European Union, European Parliament|
|Series Title||Official Journal of the European Union|
|Series Details||L 79I|
Regulation of the European Parliament and of the Council of 19 March 2019 setting up a framework for screening foreign direct investment (FDI) into the European Union.
The proposed Regulation, presented by the European Commission on 13 September 2017, includes:
This draft law responds to concerns about foreign investors, notably state-owned enterprises, taking over European companies with key technologies for strategic reasons, in a scenario where EU investors often do not enjoy the same rights to invest in the country from which the investment originates.
While the proposed Regulation was going through the ordinary legislative procedure, the European Commission decided to immediately proceed with two additional measures: setting up a coordination group on inward foreign direct investment, chaired by the Commission and comprising representatives from Member States; conducting an in-depth analysis of foreign direct investment flows into the European Union.
This proposal was adopted alongside the accompanying Communication on welcoming foreign direct investment while protecting essential interests. Following the adoption of their respective negotiating positions, the European Parliament and the Council of the European Union reached an informal agreement on a compromise text on 20 November 2018. The European Parliament formally endorsed it on 14 February 2019, followed by the Council in March. The Act was signed on 19 March and published in the Official Journal on 21 March 2019.
The FDI Screening Regulation entered into force in April 2019. The operational requirements would have to be in place for the full application of the Regulation starting on 11 October 2020. Following recommendations by the European Commission in guidance published in March 2020, Member States also agreed to cooperate informally on FDI screening where a foreign investment could have an effect on the EU single market.
|Subject Categories||Business and Industry, Trade|
|Keywords||Foreign Direct Investment [FDI]
|International Organisations||European Union [EU]|