FDI Screening Regulation Revision: Towards a more efficient system in the EU - a BusinessEurope position paper

Key messages

• The revised Regulation for the screening of foreign investments in the EU should maintain the right balance between addressing security and public order risks that stem from certain types of investments and safeguarding the EU’s openness and attractiveness as an investment location. There is no economic security without a strong and competitive economy.
• Streamlining screening procedures and timelines in the EU, through the establishment of a minimum, common set of requirements for national screening mechanisms, is critical to ensuring predictability for investors, harmonisation, coherence and accountability while minimising administrative burden and costs.
• Preserving a targeted and proportionate approach – focusing on the riskiest transactions and avoiding overburdening the system – is essential for the effectiveness of the revised Regulation, avoiding the risk of increasing exponentially the number of notifications to be treated by screening authorities. Maintaining a clear legal basis – security and public order – and having a more granular approach on areas that fall under the scope of the Regulation are key. The ongoing assessments on risks identified in the context of the European Commission’s Economic Security Strategy should ideally inform the debate.