Under the new rules informally agreed by EU co-legislators, foreign investments in sensitive sectors such as defence, semiconductors, artificial intelligence, critical rawmaterials and financial services will be subject to mandatory screening by member states,in order toidentify and address potential security or public order risks.

The procedures applicable to national screening mechanisms will be streamlined, thereby reducing complexity and making the EU a more attractive place to invest. Cooperation among national screening authorities and with the Commission will be enhanced, facilitating coordination and joint action on cross-border security risks. The new law will also cover transactions within the EU where the investor is ultimately owned by individuals or entities from a non-EU country.

In a statement adopted as part of the political agreement on the new regulation, the European Parliament and the Commission agree on the need for further action at Union level to address…