The reform makes screening mandatory in sensitive sectors such as defence, semiconductors, artificial intelligence, critical raw materials and financial services. The objective is to identify and address risks to security or public order while keeping the EU open to foreign capital.
The new framework also strengthens cooperation between national screening authorities and the Commission, streamlines national procedures, and extends coverage to intra-EU transactions where the investor is ultimately controlled by individuals or entities from a non-EU country.
This is a significant step in the EU’s broader economic security agenda. It reflects a clear shift from a largely open-market approach toward a more strategic model of investment governance, especially where control over critical technologies, infrastructure or supply chains is at stake.
As Parliament’s rapporteur Raphaël Glucksmann stated, the measure aims to end “European naivety” in the face of foreign attempts to gain influence over sensitive sectors. The debate will now continue through the proposed Industrial Accelerator Act, presented by the Commission on 4 March 2026.
The regulation still requires formal approval by the Council. Once adopted, it will enter into force and apply 18 months later.