BRUSSELS, Dec 11 (Reuters) - The European Union Council and the European Parliament have reached a provisional agreement on a regulation to screen foreign direct investment, in a move to strengthen
EU Provisional Deal on Foreign Investment Screening Rules
BRUSSELS, Dec 11 (Reuters) - The European Union reached a provisional agreement on Thursday on new rules to require all its members to screen foreign investment into the bloc in sensitive sectors such as defence, AI or critical minerals and determine if they threaten economic security.
Representatives of the European Parliament and the Council, the grouping of EU governments, reached an agreement on a text to revise its existing FDI screening regulations. Both bodies will still have to approve the text.
The revision will require all EU countries to screen and possibly block investments if they pose a security risk. Screening will also extend to investments within the EU if the investor is controlled by a foreign company.
The initial proposal did not name any country, but contrasts "reliable partners" with "countries of concern" and highlights "de-risking", the bloc's policy of reducing economic reliance on China, which has placed curbs on exports of rare earths and chips.
Screening will be required for foreign investments in military and dual-use equipment, 'hyper-critical' technologies such as AI, quantum technologies and semiconductors, critical raw materials, critical energy, transport of digital infrastructure and voter systems or databases.
Central counterparties, central securities depositories, operators of regulated markets or payment systems and systemically important financial institutions are also included.
Screening decisions remain the responsibility of the EU member where the investment is being made, but the European Commission can give its opinion.
"Today’s agreement strengthens the EU’s capacity to protect its security and public order, while ensuring Europe remains an attractive destination for investors," Danish Business and Industry Minister, Morten Bodskov, whose country holds the rotating EU presidency, said in a statement.
(Reporting by Louise Breusch Rasmussen and Philip Blenkinsop, editing by Inti Landauro and Toby Chopra)
