The European Union strengthens FDI screening

Expert Corner 03 September 2026 Regulation (EU) 2026/1386 on the screening of foreign direct investments (FDI), in force since 16 July 2026, repeals Regulation (EU) 2019/452 and reshapes the EU screening framework. It provides for an 18-month transitional period in which Member States must adapt their legislation and administrative mechanisms. Certain provisions, including those on notification of national measures, the common information form, the secure European information-exchange infrastructure and the Commission's delegated powers, are already in force since 16 July 2026. A mandatory screening framework and a broader concept of foreign investment The main change is the obligation for every Member State to establish and maintain a national foreign investment screening mechanism. Exten