EU adopts strengthened regulation for screening foreign investments

The European Parliament adopted its first‑reading position on a new Regulation to strengthen screening of foreign investments into the Union (vote: 19 May 2026).

• Main action: The European Parliament adopted a first‑reading position (19 May 2026) on a Regulation replacing Regulation (EU) 2019/452 to harmonise FDI screening across the Union, including an expanded common minimum scope covering semiconductors, quantum technologies, certain AI systems, critical raw materials and critical medicines, and setting procedural timelines such as an initial review of no more than 45 calendar days. The position reflects a compromise amendment agreed in informal contacts (INTA Chair Bernd LANGE and rapporteur Raphaël GLUCKSMANN were involved) and the text will be forwarded to the Council and Commission.

• Key details & implementation timeline: The Regulation requires each Member State to establish a screening mechanism and notify the Commission within 18 months from entry into force; the Commission must set up a secure encrypted system and secure database within 12 months, may create an online EU portal at the request of at least nine Member States, and will evaluate the Regulation after 4 years and 6 months from entry into force. The text also mandates public annual reports by Member States and retention/protection rules for confidential and personal data.