Today, negotiators from the European Parliament – led by S&D rapporteur Raphaël Glucksmann – and the Danish Presidency representing EU member states, reached a political agreement on the revised Foreign Direct Investment (FDI) Screening Regulation, a key element of the EU’s efforts to strengthen European economic security.

The updated legislation reinforces the EU’s framework for reviewing foreign investments that may pose risks to national security or public order. It introduces a minimum level of harmonisation, expands the scope of sectors subject to mandatory screening, and streamlines cooperation between member states and the European Commission.

The reform aims to bolster the Union’s economic security by ensuring better oversight of investments in strategic sectors and offering clearer, more predictable rules for investors across the single market. While decisions on individual cases will remain with member states, the new common procedures and standards will improve consistency and enhance the EU’s overall resilience.

The S&D Group stresses that the EU must also address other identified gaps in order to fully protect the Union’s economic security – beyond the remit of the current regulation, which focuses on national security and public order. At the Parliament’s request, the Commission and Parliament today adopted a declaration recognising the need for further action to impose conditions on foreign investment to avoid, in particular, the creation of strategic dependencies within the Union.

Raphaël Glucksmann, S&D MEP and Parliament’s lead negotiator on this file, said:

“These are important times for economic security. After so many wake-up calls, we are, step by step, fleshing out what this concept means and what concrete measures must be taken to protect it. Today, the revision of the foreign investment screening regulation is a big step. 

“Thanks to a new common set of rules, we will better protect the EU against economic security risks – ensuring the continuity of critical supplies, preventing technology leakages, and ensuring safe consolidation of the EU’s capital market. At the same time, the harmonisation of member states’ rules and the streamlining of their cooperation will strengthen the EU’s investment attractiveness.

“This revision focuses on preventing the risks that foreign investments can pose. Now, it is also time to ensure that foreign investments bring added value to the EU. The Commission has committed to taking further steps in that direction soon – an effort that we deem urgent and crucial.”