What changed between the draft committee report and the plenary report

Removed:Article 2 – paragraph 1 – point 1: (1) ‘foreign investment’ means a foreign direct investment or an investment within the Union with foreign control, whether planned or completed, that enables decisive influence on a Union target, or effective participation in its management;

Added:Recital 49: (49) In order to take into account developments relating to projects or programmes of Union interest and to adapt the list of technologies, materials, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union, particularly in light of the risk assessments to be carried out under the Union’s Economic Security Strategy, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amendments to the Annexes to this Regulation. The list of projects and programmes of Union interest set out in Annex I should cover projects or programmes covered by EU law which provide for the development, maintenance or acquisition of critical infrastructure, critical technologies or critical inputs which are essential for security or public order. The list of technologies, materials, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union set out in Annex II should include areas where a foreign investment may affect security or public order in more than one Member State or in the Union as a whole through a Union target, which does not participate in or receive funds from a project or programme of Union interest. The Commission should in particular update Annex I in the event of new projects or programmes of Union interest being establishe…

Removed:Article 2 – paragraph 1 – point 3: (3) ‘investment within the Union with foreign control’ means an investment of any kind carried out by a foreign investor through the foreign investor’s subsidiary in the Union, that aims to establish or to maintain lasting and direct links between the foreign investor and an existing or to be established Union target, and to which target the foreign investor makes capital available in order to carry out an economic activity in a Member State;

Added:Recital 50: (50) In order to ensure uniform conditions for the implementation of this Regulation, in particular as regards the forms to be used to provide minimum information about foreign investments and to file requests for authorisation, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council17 .

Removed:Article 2 – paragraph 1 – point 9: (9) ‘Union target economically active in one of the areas listed in Annex II’ means an Union target active or intending to be active in the design, development, production or supply of the technologies, assets, facilities, equipment, networks, systems, services and economic activities listed in Annex II;

Added:Recital 51: (51) Regulation (EU) 2019/452 should be repealed. In order to allow sufficient time for Member States and entities to prepare for the implementation, this Regulation should apply as of [add date: 12 months after entry into force]. It should be applicable regardless of the establishment of the single portal for filing requests for authorisation. In the transitional period between the entry into force and the application of this Regulation, Regulation (EU) 2019/452 should continue to apply,

Added:Article 1 – paragraph 1: 1. This Regulation establishes a Union framework for the screening, by Member States, of foreign investments in their territory, on the grounds of security or public order, including economic security.

Added:Article 1 – paragraph 2: 2. This Regulation establishes a cooperation mechanism to enable Member States and the Commission to exchange relevant information on foreign investments, assess their potential impact on security or public order, and identify and address potential concerns.

Added:Article 1 – paragraph 3: 3. Member States may adopt or maintain in force national provisions in fields not covered by this Regulation, provided that such provisions do not undermine and are consistent with the objectives of this Regulation.

Added:Article 1 – paragraph 5: 5. This Regulation is without prejudice to Member States’ obligations under the Treaties, in particular Articles 49 and 63 TFEU, and to their right to take measures which are justified on the ground of public policy or public security under Article 65 TFEU. Member States shall ensure that any measure taken in the framework of this Regulation complies with those obligations. This Regulation is without prejudice to the powers of the Commission under Article 258 TFEU to ensure compliance with Union law.

Added:Article 1 – paragraph 5 a (new): 5a. Investments by virtue of a resolution tool and internal restructurings do not fall within the scope of this Regulation.

Added:Article 2 – paragraph 1 – point 1: (1) ‘foreign investment’ means an investment of any kind, carried out either by a foreign investor itself or through a foreign investor’s subsidiary in the Union, aiming to establish or to maintain lasting and direct links between the foreign investor and a Union target, to which the foreign investor makes capital available in order to carry out an economic activity in a Member State, enabling effective participation in the management or control of that Union target;

Added:Article 2 – paragraph 1 – point 1 a (new): (1a) ‘greenfield investment’ means a foreign investment carried out through the establishment of new facilities or of a new undertaking for the performance of a new economic activity in the Union;

Added:Article 2 – paragraph 1 – point 1 b (new): (1b) ‘resolution tool’ means any resolution tool in accordance with Directive 2014/59/EU, Regulation (EU) No 806/2014, Regulation (EU) 2021/23, Regulation (EU) No 1093/2010 or Regulation (EU) No 648/2012;

Added:Article 2 – paragraph 1 – point 1 c (new): (1c) ‘internal restructuring’ means changes in the effective participation in the management or control of a Union target that occur within a chain of ownership ultimately resulting in no change of ownership or control of the target;

Added:Article 2 – paragraph 1 – point 2: deleted

Added:Article 2 – paragraph 1 – point 3: deleted

Added:Article 2 – paragraph 1 – point 7: (7) ‘foreign investor’s subsidiary in the Union’ means an undertaking established under the laws of a Member State, meeting the conditions set out in Article 22(1) of Directive 2013/34/EU of the European Parliament and of the Council of 26 June 201318 , and directly or indirectly controlled by a foreign investor;

Added:Article 2 – paragraph 1 – point 7 a (new): (7a) ‘beneficial owner’ means any natural person who ultimately owns or controls a legal entity or similar legal arrangement;

Added:Article 2 – paragraph 1 – point 7 b (new): (7b) ‘opaque ownership structure’ means an arrangement in which the ownership or control of an entity is unclear, concealed or difficult to ascertain due to, inter alia, the use of complex legal structures, multiple layers of ownership, nominee shareholders, trusts, or other mechanisms that obscure the identity of the beneficial owner;

Added:Article 2 – paragraph 1 – point 8: (8) ‘Union target’ means an undertaking established or to be established under the laws of a Member State;

Added:Article 2 – paragraph 1 – point 9: (9) ‘Union target economically active in one of the areas listed in Annex II’ means an Union target active or intending to be active in the design, development, extraction, processing, production, recycling or supply of the technologies, materials, assets, facilities, equipment, networks, systems, services and economic activities listed in Annex II;

Added:Article 2 – paragraph 1 – point 18: (18) ‘projects or programmes of Union interest’ means projects or programmes covered by Union law that provide for the development, maintenance or acquisition of critical infrastructure, critical technologies, critical and essential services or critical inputs which are essential for security or public order and are listed in Annex I;

Removed:Article 3 – paragraph 4: 4. The Commission shall make publicly available a list of Member States’ screening mechanisms no later than 3 months after having received all the notifications referred to in paragraph 3 or by [18 months from the entry into force of this Regulation], whichever occurs first. The Commission shall keep that list up to date.

Added:Article 2 – paragraph 1 – point 23 a (new): (23a) ‘critical infrastructure’ means an asset, a facility, equipment, a network or a system, or a part of an asset, a facility, equipment, a network or a system, which is necessary for the provision of an essential service;

Removed:Article 4 – paragraph 2 – point a: (a) adequate procedures shall be provided for the screening authority to determine whether it has jurisdiction over a foreign investment filed for authorisation. The screening shall comprise an initial review of no more than 35 calendar days following the receipt of the complete request for authorisation, followed by, where necessary, an in-depth investigation to determine whether that foreign investment is likely to negatively affect security or public order. The purpose of the in-depth investigation shall be, in particular, to determine whether a screening decision as referred to in Article 14(1) is appropriate and to determine its content;

Added:Article 3 – paragraph 2: 2. Member States shall ensure that the screening mechanism referred to in paragraph 1 applies at least to investments subject to an authorisation requirement pursuant to Article 4(4) and (4a).

Removed:Article 4 – paragraph 2 – point a a (new): (aa) the screening authority shall be empowered to screen transactions involving Union targets that have not yet been established;

Added:Article 3 – paragraph 3: 3. Each Member State shall notify to the Commission the measures adopted pursuant to paragraph 1 no later than ... [12 months from the date of entry into force of this Regulation]. Member States shall thereafter notify the Commission of any amendment to their screening mechanism within 30 days of the adoption of the amendment.

Removed:Article 4 – paragraph 2 – point a b (new): (ab) where the screening authority decides to open an in-depth investigation, it shall inform the undertakings concerned;

Added:Article 3 – paragraph 4: 4. The Commission shall make publicly available a list of Member States’ screening mechanisms no later than 3 months after having received all the notifications referred to in paragraph 3 or by ... [15 months from the date of entry into force of this Regulation], whichever occurs first. The Commission shall keep that list up to date.

Changed:Article 4 – paragraph 2 – point c:a: (c)(a) theadequate screeningprocedures authorityand resources shall be empoweredprovided tofor startthe screening foreignauthority investmentsto bydetermine itswhether ownit initiativehas upjurisdiction toover 15a monthsforeign afterinvestment thefiled completionfor ofauthorisation. aThe foreignscreening investmentshall thatcomprise isan notinitial subjectreview toof anno authorisationmore requirementthan where35 calendar days following the screeningreceipt authorityof hasthe groundscomplete request for authorisation, followed by, where necessary, an in-depth investigation to considerdetermine thatwhether thethat foreign investment mayis likely to negatively affect security or public order;order, taking into account at least the criteria laid down in Article 13. The purpose of the in-depth investigation shall be, in particular, to determine whether a screening decision as referred to in Article 14(1) is appropriate and to determine its content;

Added:Article 4 – paragraph 2 – point a a (new): (aa) the screening authority shall be empowered to screen greenfield investments;

Added:Article 4 – paragraph 2 – point b: (b) the screening authority shall monitor and ensure compliance with the screening mechanism and screening decisions. In particular, it shall put in place adequate procedures and resources to identify, address and prevent circumvention of the screening mechanism and screening decisions;

Added:Article 4 – paragraph 2 – point c: (c) the screening authority shall be empowered to start screening foreign investments by its own initiative within 15 months of the completion of a foreign investment that is not subject to an authorisation requirement where the screening authority has grounds to consider that the foreign investment may affect security or public order;

Added:Article 4 – paragraph 2 – point d: (d) confidential information made available to the Member State carrying out the screening, including commercially sensitive information and information designated as confidential by the undertakings concerned, shall be protected;

Added:Article 4 – paragraph 2 – point e: (e) foreign investors, foreign investors’ subsidiaries in the Union through which the foreign investment is carried out and undertakings concerned by a screening decision shall have the possibility to seek judicial recourse against that screening decision in a timely and effective manner;

Changed:Article 4 – paragraph 2 – point h a (new): (ha) screeningg: authorities(g) shallforeign beinvestments empoweredsubject to impose effective, proportionate and dissuasivean penaltiesauthorisation onrequirement foreignas investorsreferred whoto failin toparagraphs request4 anand authorisation4a whereshall requiredbe tofiled doby so,the failapplicant torequesting complyauthorisation with mitigatingthe measures,screening orauthority attemptand toshall otherwisebe circumventscreened thebefore screeningthe mechanismforeign orinvestment screeningis decisions;completed;

Removed:Article 4 – paragraph 3: 3. Before taking a decision to authorise a foreign investment subject to mitigating measures or to prohibit a foreign investment, Member States shall inform the applicant requesting an authorisation and state the reasons on which they intend to take their decision, subject to the protection of information the disclosure of which would be contrary to the security or public order interests of the EU or one or more of the Member States and without prejudice to Union and national law concerning the protection of confidential information. Member States shall give the foreign investor the opportunity to make their views known before transmitting their intended decision pursuant to Article 7(8).

Added:Article 4 – paragraph 2 – point g a (new): (ga) Member States shall implement standardised procedural milestones and structured communication points with applicants throughout the process, including formal acknowledgment of complete filing within 5 working days and informing the undertakings concerned where the screening authority decides to open an in-depth investigation;

Removed:Article 5 – paragraph 1 – point b – point iii: (iii) the foreign investor or any of its subsidiaries was involved in a foreign investment previously screened by a Member State that was not authorised or only authorised with conditions; to determine this, the notifying Member State shall rely on information available to them, including the information contained in the secure database set up pursuant to Article 7(10) and information provided by the foreign investor on this matter.

Added:Article 4 – paragraph 2 – point h: (h) the screening authority shall be empowered to impose mitigating measures, prohibit, or unwind foreign investments subject to an authorisation requirement as referred to in paragraphs 4 or 4a that were not filed or that were filed after completion and, where applicable, address effectively the consequences of non-compliance with the mitigating measures;

Added:Article 4 – paragraph 2 – point h a (new): (ha) screening authorities shall be empowered to impose effective, proportionate and dissuasive penalties on foreign investors who fail to request an authorisation where required to do so, fail to comply with mitigating measures, or attempt to otherwise circumvent the screening mechanism or screening decisions. Penalties shall reflect the scale and nature of the violation;

Added:Article 4 – paragraph 2 – point h b (new): (hb) the screening authority shall put in place adequate procedures and secure channels to receive information on foreign investments from civil society organisations, economic operators, and social partners;

Added:Article 4 – paragraph 3: 3. Before taking a decision to authorise a foreign investment subject to mitigating measures or to prohibit a foreign investment, Member States shall inform the applicant requesting an authorisation and state the reasons on which they intend to take their decision, subject to the protection of information the disclosure of which would be contrary to the security or public order interests of the EU or one or more of the Member States and without prejudice to Union and national law concerning the protection of confidential information. Member States shall give the foreign investor the opportunity to make their views known and shall take that input into account before transmitting their draft decision pursuant to Article 7(8).

Added:Article 4 – paragraph 4 – point a: (a) is part of or participates in one of the projects or programmes of Union interest listed in Annex I, including as a recipient of funds as defined in Article 2, point (59), of Regulation (EU) 2024/2509 of the European Parliament and of the Council19a , or / (deleted) / 19a Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union.

Added:Article 4 – paragraph 4 a (new): 4a. Member States shall also ensure that their screening mechanisms impose an authorisation requirement for greenfield foreign investments where: / (a) the conditions set out in point (a) or point (b) of paragraph 4 of this Article are met; / (b) the investor meets one or more of the conditions set out in Article 5(1), point (b), points (i) to (iii); and / (c) the value of the transaction is at least EUR 250 million.

Added:Article 5 – paragraph 1 – introductory part: 1. Member States shall notify the Commission and the other Member States through the cooperation mechanism of any foreign investment in a Union target in their territory that:

Added:Article 5 – paragraph 1 – point a: (a) meets the conditions set out in Article 4(4), point (a), or Article 4(4a); or

Added:Article 5 – paragraph 1 – point b – point i: (i) the foreign investor or the foreign investor’s subsidiary in the Union is directly or indirectly controlled, by the government, including state bodies, regional or local authorities or armed forces, of a third country, including through ownership structure, significant funding, special rights or state-appointed directors or managers, or other features aimed at influencing management decisions;

Added:Article 5 – paragraph 1 – point b – point ii: (ii) the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of, such a foreign investor is subject to Union restrictive measures pursuant to Article 215 TFEU;

Added:Article 5 – paragraph 1 – point b – point iii: (iii) the foreign investor or any of its subsidiaries was involved in a foreign investment previously screened by a Member State that was not authorised or only authorised with conditions; to determine this, the notifying Member State shall rely on information available to them, including the information contained in the secure database set up pursuant to Article 7(10) and information provided by the foreign investor on this matter; or

Added:Article 5 – paragraph 1 – point b – point iii a (new): (iiia) the ownership structure of the investor is opaque.

Changed:Article 5 – paragraph 2 a (new): 2a. Member States shall notifynotify, at the earliest possible time, the Commission and the other Member States of any foreign investment in their territory where, in exceptional cases, they intend to impose a mitigating measure or to prohibit the transaction without an in-depth investigation.

Changed:Article 6 – paragraph 1 – point a: (a) within 15 calendar days of receiving the complete request for authorisation for foreign investments meeting any of the conditions set out in Article 5(1)5(1), (2a) or (3);

Changed:Article 6 a (new): Article 6a / Specific rules applicable to multi-country transactions / 1. Applicants requesting an authorisation for an investment in several Member States shall file their requests for authorisation in all relevant Member States within 53 calendar days of the first request for authorisation, and each request for authorisation shall make reference to the other requests. / 2. Where a Member State receives a request for authorisation that meets the conditionsas setreferred outto in paragraph 1, it shall coordinate with the other Member States concerned,concerned and the Commission, inter alia,alia to determine whether the investment is notifiable; the Commission may participate in such coordination upon request from one or more Member States.notifiable. / 3. If the requests for authorisation concern a foreign investment meeting any of the conditions set out in Article 5(1), the respective Member States concerned shall send their notifications to the cooperation mechanism onwithin 3 calendar days of the samefirst dayrequest for authorisation and within the deadline laid down in Article 6, point (a). / 4. If the requests for authorisation concern a foreign investment meeting the conditions set out in Article 5(2), the Member States concerned shall endeavour to send their notifications to the cooperation mechanism onwithin a limited timeframe and within the samedeadline day.laid down in Article 6(1), point (b). / 5. The Member States concerned shall coordinate closely throughout the procedure. In particular, they shall endeavour to align the timelines of their respective screening procedures and to ensure that their respective screening decisions are compatible with each other. Wh……

Changed:Article 7 – paragraph 2 – subparagraph 1 – introductory part: The Commission may issue a duly motivated opinion addressed to the notifying Member State. The Commission mayshall issue such an opinion if:

Added:Article 7 – paragraph 2 – subparagraph 2 a (new): Where appropriate, the opinion of the Commission may propose measures aimed at mitigating the likely negative effect of the investment on security and public order.

Added:Article 7 – paragraph 3: 3. The Commission shall issue a duly motivated opinion addressed to all Member States if it considers that several foreign investments or other similar investments if they were to be made, taken together, and having regard to their characteristics could affect the security or public order of the Union. After a Commission opinion is issued, the Commission shall, as appropriate, discuss with Member States the measures to address the identified risks.

Added:Article 7 – paragraph 4 a (new): 4a. The notifying Member State may invite the Commission to issue an opinion or other Member States to issue comments.

Changed:Article 7 – paragraph 6: 6. Following the receipt of a comment pursuant to paragraph 1 or an opinion pursuant to paragraph 22, the host Member State shall consult the Member States that issued comments, where applicable, and the Commission. In the framework of thisthat Article,consultation, the host Member State shall set up a meeting with thethose Member States that issued comments,States, where applicable, and the Commission to discuss how to best address the risks identified. If the host Member State disagrees with the risks identified or, if applicable, the measure proposed with the comment or opinion, the Member States and the Commission shall aim to identify alternative solutions. Where the comment or opinion concerns a multi-country transaction, the other Member States that notified the foreign investment shall also be invited to that meeting to discuss whether the intended outcomes are compatible with one another and, where applicable, whether the intended conditions are able to address identified cross-border risks adequately.

Changed:Article 7 – paragraph 8:8 – introductory part: 8. Following the meeting referred to in paragraph 6 of this article,6, the host Member State shall transmit to the respective Member States and the Commission its intendeddraft screening decision and provide a written explanation on: / (deleted) / (deleted) / (a) the extent to which it gave the Member States’ comments or the Commission opinion utmost consideration; and / (b) where applicable, the reason for its disagreement with the Member States’ comments or the Commission opinion.

Removed:Article 7 – paragraph 9: 9. Where a Member State or the Commission indicates that the intended screening decision referred to in paragraph 8 does not give utmost consideration to its comments provided pursuant to paragraph 1 or the opinion provided pursuant to paragraph 2, the host Member State shall organise a meeting to explain the obstacles encountered or the reasons for disagreement and shall endeavour to identify solutions. Where the screening decision concerns a multi-country notification, the other Member States who notified the foreign investment to the cooperation mechanism shall also be invited. The Commission shall be invited to any meetings organised pursuant to this paragraph.

Added:Article 7 – paragraph 8 – point a: deleted

Removed:Article 7 – paragraph 9 a (new): 9a. Where, following the meeting referred to in paragraph 9 of this Article, a Member State or the Commission considers that the foreign investment is likely to affect security or public order, it shall inform the host Member State and the Commission within 7 calendar days of the meeting. The host Member State shall suspend its screening procedure until the Commission has taken a decision pursuant to Article 9b(2). The deadline pursuant to Article 8(7a), first subparagraph, shall not be applicable. / Following the Commission's decision pursuant to Article 9b(2), the host Member State shall take its screening decision within 5 calendar days.

Added:Article 7 – paragraph 8 – point a a (new): (aa) the extent to which it gave the Member States’ comments or the Commission opinion utmost consideration; and

Changed:Article 7 – paragraph 9 b (new): 9b. The host Member State shall notify its screening decision to8 the– Memberpoint Statesa whichb provided(new): comments,(ab) where applicable, and to the Commission no later than 3 calendar days afterreason itfor wasits sentdisagreement towith the respectiveMember partiesStates’ tocomments or the foreignCommission investment.opinion.

Removed:Article 7 – paragraph 10: 10. The Commission shall set up a secure database made available to all Member States with information on the foreign investments assessed by the cooperation mechanism and the outcome of the assessments under the national screening mechanisms, including information about the relevant screening decisions. The Commission shall do so no later than ... [six months from the date of entry into force of this Regulation] and upload to that database the information it has at its disposal since 12 October 2020. By [date of application of this Regulation] Member States shall upload to that database the information at their disposal about the outcome of the relevant procedure under their own screening mechanisms. They may also provide additional explanations.

Added:Article 7 – paragraph 8 – point b: deleted / (deleted) / (deleted)

Removed:Article 8 – title: Deadlines and procedures applicable to the Union cooperation mechanism

Added:Article 7 – paragraph 9: 9. Where a Member States or the Commission considers that a draft screening decision referred to in paragraph 8 of this Article, authorising a foreign investment under Article 14(1), point (a), or Article 14(2) does not adequately address or mitigate the risks to security and public order, it may raise a duly justified objection. The objection shall be notified to the host Member State and, where applicable, the other Member States that issued comments and the Commission. The host Member State shall suspend its screening procedure until the Commission has adopted a decision pursuant to paragraphs 9b and 9c of this Article. The host Member State shall inform the foreign investor of the suspension.

Added:Article 7 – paragraph 9 a (new): 9a. Where a Member State or the Commission has raised an objection pursuant to paragraph 9 of this Article, and without prejudice to Article 346(1), point (a), TFEU, the host Member State shall transmit to the Commission all documents and information on which its draft decision is based. The Member State that raised an objection pursuant to paragraph 9 of this Article shall transmit all documents and information on which its objection is based.

Added:Article 7 – paragraph 9 b (new): 9b. Where, taking into account the criteria laid down in Article 13, the documents and information received pursuant to paragraph 9a of this Article, as well as, where applicable, the comments provided by Member States pursuant to Article 7(1) or Article 9(7), the Commission concludes that the draft screening decision, as modified by the host Member State where appropriate, effectively addresses the foreign investment’s potential effect on security and public order, it shall decide not to object to the adoption of the draft screening decision by the Member State.

Added:Article 7 – paragraph 9 c (new): 9c. Where the Commission finds that the host Member State’s draft screening decision referred to in paragraph 8 does not adequately mitigate risks to security and public order, it shall adopt a decision to: / (a) authorise the foreign investment subject to mitigating measures; or / (b) prohibit the foreign investment where it finds that the risks to security and public order of the Union cannot be adequately addressed through mitigating measures. / The decision referred to in the first subparagraph shall comply with the principle of proportionality, shall be based on documented risks and shall take into consideration all circumstances of the foreign investment.

Added:Article 7 – paragraph 9 d (new): 9d. Decisions adopted pursuant to paragraph 9b shall be addressed to the host Member State. The Commission shall notify the host Member State and shall inform the Member States that provided comments pursuant to paragraph 1. / Decisions adopted pursuant to paragraph 9c shall be addressed to the foreign investor. The Commission shall notify the host Member State and the Member States that provided comments pursuant to paragraph 1 and shall inform the Union target.

Added:Article 7 – paragraph 9 e (new): 9e. Where the Commission adopts a decision pursuant to paragraph 9c, the host Member State shall terminate its screening procedure and inform the foreign investor thereof.

Added:Article 7 – paragraph 9 f (new): 9f. Before adopting a decision pursuant to paragraph 9c, the Commission shall give the foreign investor the opportunity to make its views known effectively.

Added:Article 7 – paragraph 9 g (new): 9g. Where a comment pursuant to paragraph 1 or an opinion pursuant to paragraph 2 or 3 has been issued and the Commission has not issued a decision pursuant to paragraph 9c, the host Member State shall notify its screening decision to the Member States which provided comments, where applicable, and to the Commission, and send it to the respective parties to the foreign investment.

Added:Article 7 – paragraph 10: deleted

Added:Article 8 – title: Deadlines and procedures applicable to the Union cooperation mechanism and decisions

Changed:Article 8 – paragraph 7 a (new): 7a. The notifying Memberfollowing Statedeadlines shall takeapply itsto screeningthe decisionconsultations onlybetween afterMember States and the deadlinesCommission referredpursuant to inArticle paragraph7(6) 3,to points(9): / (a) tothe (d),meeting ofreferred thisto Articlein haveArticle expired,7(6) andshall notake laterplace thanwithin 3020 calendar days afterfollowing theirthe expiry.receipt /by Wherethe neitherhost Member States nor the Commission haveState reservedof the right to issuelast commentscomment or an opinion, respectively, by the deadlinesopinion pursuant to paragraphArticle 17, ofwhichever thiscomes Article,last; / (b) the notifyinghost Member State shall adopttransmit its screeningdraft decision pursuant to Article 7(8) within 6010 calendar days fromfollowing the datemeeting ofreferred notification.to in Article 7(6); / The(c) deadlinesthe referredobjection toby ina thisMember paragraphState mayor the Commission pursuant to Article 7(9) shall be extendedraised bywithin 3010 calendar days to allowfollowing the notifying Member Statereceipt andof the investordraft toscreening agreedecision onpursuant mitigatingto measures.Article 7(8).

Added:Article 8 – paragraph 7 b (new): 7b. The following deadlines shall apply to the adoption and the notification of screening decisions on notified foreign investments: / (a) the notifying Member State shall adopt its screening decision only after the deadlines referred to in points (a) to (d) of paragraph 3 of this Article have expired; / (b) where neither Member States nor the Commission have reserved the right to issue comments or an opinion, respectively, by the deadlines pursuant to paragraph 1 of this Article, the notifying Member State shall adopt its screening decision within 60 calendar days from the date of notification; / (c) following an objection raised pursuant to Article 7(9), the host Member State and the Member State that raised the objection shall transmit the information referred to in Article 7(9a) within 5 calendar days; / (d) following a Commission decision pursuant to Article 7(9b), the host Member State shall adopt its screening decision within 15 calendar days of the notification referred to in Article 7(9d); / (e) the notification of the screening decision pursuant to Article 7(9f) shall take place within 3 calendar days.

Added:Article 8 – paragraph 7 c (new): 7c. The following deadlines shall apply to the adoption and the notification of a decision by the Commission pursuant to Article 7(9b) and (9c): / (a) the Commission shall adopt its decision within 20 calendar days following receipt of the complete information referred to in Article 7(9a); / (b) the notification pursuant to Article 7(9d) shall take place within 3 calendar days. / The deadlines referred to in paragraph 7a, points (a) and (b), in paragraph 7b, point (b), and paragraph 7c, point (a), of this Article shall be extended by up to 30 calendar days in total, where applicable, to allow the host Member State or, where relevant, the Commission and the foreign investor to agree on mitigating measures. The negotiation of mitigating measures by the Commission and the foreign investor shall be conducted in cooperation with the host Member State.

Changed:Article 9 – paragraph 1: 1. Where a Member State considers that a foreign investment in the territory of another Member State which has not been notified to the cooperation mechanism is likely to negatively affect its security or public order or haswhere informationthe relevantCommission toconsiders that such a foreign investment,investment oris wherelikely to negatively affect the Commissionsecurity considersor thatpublic suchorder aof foreignmore investmentthan fallsone withinMember theState scopeor projects or programmes of ArticleUnion 7(2),interest on grounds of security and public order, the Member State or the Commission may open an own initiative procedure in relation to that foreign investment. Before opening the procedure, the Member State or the Commission shall check that the host Member State does not intend to notify the foreign investment to the cooperation mechanism.

Changed:Article 9 – paragraph 7:7 – introductory part: 7. Following receipt of information referred to in paragraph 6, Member States may provide comments and the Commission may provide an opinion to the host Member State, no later than 3530 calendar days after receiving the complete information requested pursuant to paragraph 5. TheIn Commissioncases shallwhere bethe grantedprocedure anwas additionalinitiated 15by calendara daysMember toState, issuethe anCommission opinionshall inbe casesgranted wherean theadditional procedure15 wascalendar initiateddays byto aissue Memberits State.opinion. The host Member State shall give itsthe utmost consideration to such commentsa comment or opinion. / (deleted) / (deleted)

Removed:Article 9 – paragraph 7 a (new): 7a. Following receipt of a comment or opinion pursuant to paragraph 7 of this Article, the host Member State shall set up a meeting with the Member States who issued comments, where applicable, and the Commission to discuss how to best address the risks identified. If the host Member State disagrees with the risks identified or, if applicable, the measure proposed with the comment or opinion, the Member States and the Commission shall aim to identify alternative solutions.

Added:Article 9 – paragraph 7 – point a: deleted

Removed:Article 9 – paragraph 7 b (new): 7b. Following the meeting referred to in paragraph 7a, the host Member State shall inform the Commission and, where applicable, the Member State having provided the comment, whether it intends to screen the investment.

Added:Article 9 – paragraph 7 – point b: deleted

Changed:Article 9 – paragraph 7 ca (new): 7c.7a. WhereFollowing the hostreceipt Memberof Statea decidescomment notor opinion pursuant to screenparagraph 7, the foreignhost investment,Member itState shall provideset aup writtena explanationmeeting towith the respective Member States that issued comments, where applicable, and the Commission onto discuss how to effectively address the reasonsrisks foridentified. itsIf disagreementthe host Member State disagrees with the Memberrisks States’identified commentsor, where applicable, the measures proposed with the comment or opinion, the Member States and the Commission opinion.shall aim to identify alternative solutions and agree on a suitable course of action to manage the risks in question.

Removed:Article 9 a (new): Article 9a / Investigative powers of the Commission / 1. Upon a duly justified request by a Member State or on its own initiative, and provided the host Member State has been notified and raises no objection, the Commission may request information in accordance with this Article. / 2. The Commission may require the parties involved in a foreign investment to provide any information deemed necessary to assess whether the foreign investment is likely to negatively affect security or public order. It may request information from any other entity or person likely to possess relevant information for assessing whether a foreign investment is likely to negatively affect security or public order, including suppliers, contractors, and customers. / 3. The Commission shall inform a Member State before seeking such information on its territory. / 4. A request for information pursuant to paragraph 2 shall: / (a) state its legal basis and purpose, specify the required information, and set an appropriate time limit for its provision; / (b) be duly justified and limited to the information strictly necessary for assessing the potential impact of a transaction on security or public order; / (c) include a statement that, if the information supplied is incorrect, incomplete or misleading, the periodic penalty payments provided for in paragraph 6 could be imposed; / (d) include a statement that a lack of cooperation may allow the Commission to take a decision based on the facts available. / 5. Th…

Added:Article 9 – paragraph 7 b (new): 7b. Following the meeting referred to in paragraph 7a, the host Member State shall inform the Commission and, where applicable, the Member States having provided comments, whether it intends to screen the investment.

Removed:Article 9 b (new): Article 9b / Power of decision of the Commission / 1. Following the suspension of a screening procedure pursuant to Article 7(9a) of this Regulation and without prejudice to Article 346(1), point (a), TFEU, the Commission shall request the host Member State to transmit all documents and information on which the intended decision is based. The host Member State shall transmit the requested information no later than 10 calendar days following the request. / 2. After examination of the information provided the Commission shall issue a decision to: / (a) confirm the intended decision of the host Member State where it concludes that the foreign investment is not likely to affect security or public order, or that the intended decision adequately mitigates the risk; or / (b) require the host Member State to modify its intended decision, where it finds that the intended decision does not adequately mitigate risks to security or public order. / Where the Commission requires the host Member State to modify its intended decision, it may require the host Member State to subject the investment to mitigating measures or additional mitigating measures or to prohibit the foreign investment. / 3. The decision shall be binding on the host Member State. / 4. The Commission shall adopt its decision no later than 15 days after the receipt of the information requested pursuant to paragraph 1. This deadline may be extended by 15 days to allow the Commission and the investor to agree on mitigating m…

Added:Article 9 – paragraph 7 c (new): 7c. Where the host Member State decides not to screen the foreign investment, it shall provide a written explanation to the Member States concerned and the Commission on the reasons for its disagreement with the comments of those Member States or the opinion of the Commission.

Removed:Article 10 – paragraph 1 – introductory part: 1. Member States shall ensure that information provided in the notification referred to in Article 5 and in response to the request of information referred to in 9(5) include:

Added:Article 9 a (new): Article 9a / Investigative Powers of the Commission / 1. Upon a duly justified request by a Member State or on its own initiative when there are reasonable grounds to suspect that a foreign investment may affect the security or public order of more than one Member State, and provided the host Member State has been notified, the Commission may request information in accordance with this Article. / 2. The Commission may require the parties involved in a foreign investment to provide any information deemed necessary to assess whether the foreign investment is likely to negatively affect security or public order. It may request information from any other entity or person likely to possess relevant information for assessing whether a foreign investment is likely to negatively affect security or public order, including suppliers, contractors, customers and experts. / 3. The Commission shall inform a Member State before seeking such information on its territory. / 4. A request for information pursuant to paragraph 2 shall: / (a) state its legal basis and purpose, specify the required information, and set an appropriate time-limit for its provision; / (b) be duly justified and limited to the information strictly necessary for assessing the potential impact of a transaction on security or public order; / (c) include a statement that, if the information supplied is incorrect, incomplete or misleading, the periodic penalty payments provided for in paragraph 6 could be imposed; / (d) inc…

Added:Article 10 – paragraph 1 – introductory part: 1. Member States shall provide, at a minimum, the following information in the notification referred to in Article 5 and in response to the request of information referred to in 9(5):

Changed:Article 10 – paragraph 1 – point e a (new): (ea) where applicable, the reasons justifying the notification;notification, andincluding whether any of the conditions for the notification of a foreign investment referred to in points (i) to (iii) of Article 5(1), point (b), are fulfilled;

Added:Article 10 – paragraph 1 – point e b (new): (eb) whether the Union target is a recipient of funds as defined in Article 2 paragraph 59 of Regulation (EU) 2024/2509, or of any fund or financial instrument established or managed by the Union; and

Changed:Article 10 – paragraph 4: 4. Where necessary, the host Member State may request the applicant requesting an authorisation or any other relevant undertaking to provide, inter alia, the information referred to in paragraphsparagraph 1.1 of this Article and Article 8(2). The request for information may concern information necessary for the Member State to determine if any of the conditions set out in Article 5(1) are met. The undertaking concerned shall provide the requested information to the Member State where the foreign investment is planned or has been completed within 15 calendar days of the request.

Removed:Article 11 – paragraph 4: 4. Member States shall ensure that their screening mechanisms give sufficient time and means to assess and give utmost consideration to other Member States’ comments and Commission opinions before a screening decision is taken. This includes having all necessary legal means and powers to consider concerns expressed or likely impacts identified by another Member State or the Commission in its screening decision or in any other relevant instrument at its disposal.

Added:Article 11 – paragraph 1: 1. Member States shall provide the necessary resources, legal and administrative means to carry out, in an effective and efficient manner, the tasks assigned to them to fulfil the objectives of this Regulation, including their efficient and effective participation in the cooperation mechanism.

Removed:Article 11 – paragraph 5: 5. Member States shall ensure that their national laws allow compliance with the obligations set out in Article 7(5) to (9b).

Added:Article 11 – paragraph 4: 4. Member States’ screening mechanisms shall give sufficient means to assess and give utmost consideration to other Member States’ comments and Commission opinions before a screening decision is taken. This includes having all necessary legal means and powers to consider concerns expressed or likely impacts identified by another Member State or the Commission in its screening decision or in any other relevant instrument at its disposal.

Removed:Article 12 – paragraph 1 – introductory part: 1. Information received in accordance with the procedures set out in Articles 5, 7, 9 and 9b shall be used only for the purpose for which it was requested, unless:

Added:Article 11 – paragraph 5: 5. Member States shall ensure that their national laws allow compliance with the obligations set out in Article 7.

Added:Article 11 – paragraph 7: 7. Where mitigating measures in a screening decision require compliance by undertakings established in more than one Member State, the Member States concerned shall cooperate with each other on the monitoring and enforcement of the screening decision. Member States shall ensure that they have all necessary legal means and powers to address effectively the consequences of non-compliance with the mitigating measures provided in a screening decision of another Member State or of the Commission.

Added:Article 11 – paragraph 7 a (new): 7a. Where, following the adoption of a screening decision, a host Member State imposes penalties in accordance with Article 4(2), point (ha), it shall notify the Commission and the Member States that provided comments on the transaction within a reasonable timeframe.

Added:Article 12 – paragraph 1 – introductory part: 1. Information received in accordance with the procedures set out in Articles 5, 7, 9 and 9a shall be used only for the purpose for which it was requested, unless:

Changed:Article 12 a (new): Article 12a / Secure and encrypted system and single portal / 1. The Commission shall establish and maintain a secure and encrypted system to facilitate the exchange of information between the contact points. All communications between Member States, as well as between Member States and the Commission under this Regulation, including notifications pursuant to Article 5 and comments and opinions pursuant to Article 7, shall be transmitted exclusively through that secure and encrypted system. / 2. As part of the secure and encrypted system, the Commission shall establish an online single portal for the electronic filing of foreign investments with screening authorities. That single portal shall be operational no later than ... [six months before the date of application of this Regulation]. It shall serve as the entry point for the screening of foreign investments. Member States shall use the single portal to receive filings and for other communications with applicants. / 3. Applicants and their legal representatives shall be able to submit filings through an online form available on the single portal established pursuant to paragraph 3.2 of this Article. The form shall include the information required under Article 10(1). / 4. When submitting a filing, applicants shall select the Member States to which the filing is to be transmitted. Subsequent communications between the recipient Member State and the applicants shall takebe placeconducted through the single portal until the request for authorisation is completed. / 5. All information transmitted through the single portal shall be made available only to the designated …authorisati…

Removed:Article 13 – paragraph 2: 2. The Commission shall determine, for the purpose of issuing a duly motivated opinion pursuant to Article 7(2) or (3) or Article 9(7), or a decision pursuant to Article 9b, whether it considers a foreign investment to be likely to negatively affect security or public order.

Added:Article 12 b (new): Article 12b / Business intelligence capability / The Commission shall develop a business intelligence capability to support the Member States’ screening authorities in identifying potential risks to security and public order related to foreign investments, develop coordinated risk assessments and, in consultation with the Commission expert group on the screening of foreign investments, support a Union FDI capacity-building programme to identify and promote best practices and lessons learned, and offer common training programmes for officials of the Member States.

Removed:Article 13 – paragraph 3 – point a a (new): (aa) the security, integrity, functioning and resilience of the internal market;

Added:Article 13 – paragraph 2: 2. The Commission shall determine, for the purpose of issuing a duly motivated opinion pursuant to Article 7(2) or (3) or Article 9(7), or a decision pursuant to Article 7(9b) or (9c), whether it considers a foreign investment to be likely to negatively affect security or public order.

Added:Article 13 – paragraph 3 – introductory part: 3. When determining whether a foreign investment is likely to negatively affect security or public order, the Member States or the Commission shall in particular consider whether the investment concerned is likely to negatively affect:

Added:Article 13 – paragraph 3 – point a: (a) the security, integrity, functioning and resilience of critical infrastructure, including the land and property critical to the use of such critical infrastructure, whether physical or virtual; in that context, based on the information available, it shall also be assessed whether the foreign investment is likely to negatively affect the resilience of any of the critical entities they have identified under Directive (EU) 2022/2557 of the European Parliament and of the Council20 as well as entities in scope of Directive (EU) 2022/2555 of the European Parliament and of the Council21 . The results of the Union level coordinated security risk assessments, including those concerning critical supply chains carried out in accordance with Article 22(1) of Directive (EU) 2022/2555 shall be taken into account, covering both technical and non-technical risk factors;

Added:Article 13 – paragraph 3 – point a a (new): (aa) the security of military facilities and other sensitive public facilities in the immediate geographical proximity of the Union target;

Added:Article 13 – paragraph 3 – point a b (new): (ab) the security, integrity, functioning, operational stability and resilience of the internal market;

Changed:Article 13 – paragraph 3 – point cc: a(c) (new):the (ca)security theand capacityresilience toof addresssupply strategicchains dependencies;for critical inputs;

Added:Article 13 – paragraph 3 – point c a (new): (ca) food security;

Added:Article 13 – paragraph 3 – point c b (new): (cb) the capacity to avoid and address strategic dependencies;

Added:Article 13 – paragraph 3 – point c c (new): (cc) the protection of the financial and economic stability of the Union;

Added:Article 13 – paragraph 3 – point c d (new): (cd) the provision of essential services and services of general interest;

Added:Article 13 – paragraph 3 – point d: (d) the protection of sensitive information, including personal data as defined in Article 4, point (1), of Regulation (EU) 2016/6791a, in particular with regard to the ability of the foreign investor to access, control, and otherwise process such information; / 1a Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1–88, ELI: http://data.europa.eu/eli/reg/2016/679/oj).

Added:Article 13 – paragraph 3 – point d a (new): (da) the protection of intellectual property, knowledge or other intangible assets;

Added:Article 13 – paragraph 3 – point e: (e) the freedom and pluralism of the media, including online and social media platforms that can be used for large scale disinformation or criminal activities, fundamental rights, civic discourse and electoral processes, as well as the neutrality, objectivity and pluralism of education; or

Added:Article 13 – paragraph 3 – point e a (new): (ea) the likelihood of economic coercion by a third country falling within the scope of Article 2 of Regulation (EU) 2023/26751a. / 1a Regulation (EU) 2023/2675 of the European Parliament and of the Council of 22 November 2023 on the protection of the Union and its Member States from economic coercion by third countries (OJ L, 2023/2675, 7.12.2023, ELI: http://data.europa.eu/eli/reg/2023/2675/oj).

Added:Article 13 – paragraph 4 – point -a (new): (-a) whether the foreign investor or the foreign investor’s subsidiary in the Union is directly or indirectly controlled by the government, including state bodies, regional or local authorities or armed forces, of a third country, including through ownership structure, significant funding, special rights or state-appointed directors or managers, or other features aimed at influencing management decisions, such as golden shares;

Added:Article 13 – paragraph 4 – point a: (a) whether the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of the foreign investor was involved in a foreign investment previously screened by a Member State or, where available, by a third country with an established foreign direct investment screening mechanism, with which the Union cooperates in investment screening matters and that was not authorised or was only authorised with conditions; to determine this, Member States and the Commission shall rely on information available to them, including the information contained in the secure database set up pursuant to Article 12a (6a);

Added:Article 13 – paragraph 4 – point d: (d) whether the foreign investor or any of its subsidiaries has engaged in illegal or criminal activities, including money laundering and the circumvention of Union restrictive measures pursuant to Article 215 TFEU;

Added:Article 13 – paragraph 4 – point e: (e) whether the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of the foreign investor is likely to pursue a third country’s policy objectives, support risks of violations of international law by a third country, or facilitate the development of a third country’s military capabilities;

Added:Article 13 – paragraph 4 – point e a (new): (ea) whether the foreign investor is established in a third country subject to Union restrictive measures pursuant to Article 215 TFEU, in a jurisdiction identified as a third country with significant strategic deficiencies in its national AML/CFT regime in accordance with Article 29 of Regulation (EU) 2024/1624 of the European Parliament and of the Council, or in a country pursuing an aggressive civil-military fusion strategy;

Added:Article 13 – paragraph 4 – point e b (new): (eb) whether the foreign investor or any of its subsidiaries is established in a third country whose legislation permits arbitrary access to company operations or data, including commercially sensitive information, and imposes obligations on companies to share information for intelligence purposes without democratic checks and balances, oversight mechanisms, due process, or the right to appeal to an independent court or tribunal.

Added:Article 13 – paragraph 4 a (new): 4a. The Commission shall make available a risk evaluation form that may be used by Member States to assess the elements referred to in paragraphs 3 and 4.

Added:Article 13 – paragraph 4 b (new): 4b. The Commission may carry out a risk assessment relating to a specific sector, critical technology, foreign investors or Union undertakings to inform screening decisions of the Member States. That risk assessment shall be made available in the secure database set up pursuant to Article 12a(6a) and shall be taken into account by Member States when determining whether an investment is likely to negatively affect security or public order.

Changed:Article 14 – paragraph 2:1 2.– Wheresubparagraph the1 Member– Stateintroductory wherepart: Where, taking into account the foreigncriteria investmentlaid isdown plannedin orArticle completed13 concludesand, thatwhere theapplicable, foreignin investmentthe islight notof likelycomments toprovided negativelyby affectother securityMember orStates publicpursuant orderto inArticle one7(1) or more MemberArticle States9(7), or considersan thatopinion otherprovided measuresby the Commission pursuant to UnionArticle 7(2) or national(3) lawor areArticle available9(7), and appropriatewithout prejudice to addressthe Commission’s power to adopt a decision pursuant to Article 7(9c), the host Member State concludes that the foreign investment’sinvestment effectis onlikely to negatively affect security andor public order,order thein foreignone investmentor more Member States, including where a project or programme of Union interest is concerned, it shall beissue authoriseda withoutscreening conditions.decision to:

Removed:Article 14 – paragraph 2 a (new): 2a. The mitigating measures referred to in paragraph 1, point (a), may include: / (a) changes to the proposed governance structure of the target; / (b) modifications to the voting rights conferred on the investor; / (c) prevention of unauthorised access to sensitive technologies or information; / (d) commitments by the investor to ensure a specific supply and/or supply to a specific client; / (e) commitments by the investor to maintain or create local added value; / (f) commitments by the investor to address the risk of dependency, including the transfer of technologies and know-how; / (g) measures to ensure the continuation of business activities; / (h) requirements to source critical components from secure and reliable suppliers; / (i) implementation of cybersecurity protocols to protect against potential threats; an obligation to store and process specific data within the Union.

Added:Article 14 – paragraph 1 – subparagraph 2: The screening decision shall comply with the principle of proportionality, be based on documented risks and take into consideration all circumstances of the foreign investment.

Removed:Article -15 (new): Article -15 / Group of experts on the screening of foreign direct investments into the Union / 1. The group of experts on the screening of foreign direct investments into the Union providing advice and expertise to the Commission shall continue to discuss issues relating to the screening of foreign direct investments, share best practices and lessons learned, and exchange views on trends and issues of common concern relating to foreign direct investments. The Commission shall also seek the advice of that group on systemic issues relating to the implementation of this Regulation. / 2. The discussions in that group shall be kept confidential.

Added:Article 14 – paragraph 2: 2. Where the host Member State concludes that the foreign investment is not likely to negatively affect security or public order or considers that other measures pursuant to Union or national law are available and appropriate to effectively address the foreign investment’s effect on security and public order, and except in cases where the Commission has taken a decision pursuant to Article 7(9c), the foreign investment shall be authorised without conditions.

Removed:Article 15 – paragraph 1: Member States and the Commission may cooperate with the responsible authorities of third countries on issues relating to the screening of investments on grounds of security and public order, including exchange of information and best practices, as well as capacity-building. That cooperation may also encourage the adoption of investment screening mechanisms by third countries, in particular by countries that are candidates for accession to the Union and countries in the Union’s neighbourhood.

Added:Article 14 – paragraph 2 a (new): 2a. The mitigating measures referred to in paragraph 1, point (a), shall be sufficient to address the foreign investment’s effect on security and public order and shall comply with the principle of proportionality. Those measures may include: / (a) changes to the proposed governance structure of the target; / (b) modifications to the voting rights conferred on the investor; / (c) prevention of unauthorised access to sensitive technologies or information; / (d) commitments by the investor to ensure a specific supply and/or supply to a specific client; / (e) commitments by the investor to maintain or create local added value; / (f) commitments by the investor to address the risk of dependency, including the transfer of technologies and know-how; / (g) measures to ensure the continuation of business activities; / (h) requirements to source critical components from secure and reliable suppliers; / (i) implementation of cybersecurity protocols to protect against potential threats; / (j) the requirement for the foreign investor to establish a joint venture with a Union undertaking; / (k) an obligation to store and process specific data within the Union.

Removed:Article 15 a (new): Article 15a / Public Transparency Requirements / 1. By ... [12 months from the date of entry into force of this Regulation], the Commission shall publish guidelines regarding: / (a) the concept of foreign investment, in particular the assessment criteria for establishing whether an investment enables decisive influence on a Union target or effective participation in its management pursuant to Article 2, point (2); / (b) the assessment criteria to establish whether an undertaking is part of or participates in a project or programme of Union interest pursuant to Article 4(4), point (a); / (c) the assessment criteria to establish whether an undertaking is economically active in one of the areas listed in Annex II pursuant to Article 4(4), point (b); / (d) the criteria for assessing potential risks to the security and public order of the Union; / (e) the criteria for assessing potential risks to the security and public order posed by transactions involving Union targets that have not yet been established. / Before issuing the guidelines referred to in the first subparagraph, the Commission shall conduct appropriate consultations with stakeholders and Member States. The Commission shall regularly update the guidelines in light of the experience gained in implementing this Regulation. / 2. The Commission shall publish a list of all screening mechanisms established by the Member States. That list shall contain summary information on the respective scope and on the relevant procedura…

Added:Article 14 a (new): Article 14a / Group of experts on the screening of foreign direct investment into the Union / 1. The group of experts on the screening of foreign direct investments into the Union, which provides advice and expertise to the Commission, shall continue to engage in discussions regarding foreign direct investment screening. It shall share best practices, lessons learnt, and exchange views on emerging trends and issues of common concern related to foreign direct investments. The Commission shall also seek the advice of that group on systemic matters concerning the implementation of this Regulation. That group shall meet on a regular basis to ensure ongoing dialogue and mutual learning. / 2. The discussions in that group shall be kept confidential.

Added:Article 14 b (new): Article 14b / Public transparency requirements / 1. By ... [the date of entry into force of this Regulation] the Commission shall publish guidelines regarding the application of: / (a) the criteria for determining whether an investment enables effective participation in the management or control of a Union target pursuant to Article 2, point (1); / (b) the criteria for determining whether an undertaking is part of or participates in a project or programme of Union interest pursuant to Article 4(4), point (a); / (c) the criteria for determining whether an undertaking is economically active in one of the areas listed in Annex II pursuant to Article 2, point (9); / (d) the criteria for assessing potential risks to security and public order, including cross-border risks and those posed by greenfield investments, as set out in Article 13. / Before issuing the guidelines referred to in the first subparagraph, the Commission shall conduct appropriate consultations with stakeholders. The Commission shall regularly update those guidelines in light of the experience gained in implementing this Regulation. / 2. The Commission shall publish a list of all screening mechanisms established by the Member States. That list shall contain summary information on the respective scope and on the relevant procedural rules of each screening mechanism. It shall also contain a link to the screening authorities’ guidance referred to in paragraph 3 and the contact details of the contact point concerned.…

Added:Article 15 – paragraph 1: Member States and the Commission may cooperate with the responsible authorities of third countries and engage through bilateral and multilateral platforms on issues relating to the screening of investments on grounds of security and public order. That cooperation may involve the exchange of information and best practices, as well as technical and capacity-building support. In the context of that cooperation, the Commission shall encourage the establishment of investment screening mechanisms by third countries, particularly those that are candidates for accession to the Union and countries in the Union’s neighbourhood.

Added:Article 16 – paragraph 1 – point c: (c) the number of foreign investments prohibited, the number of foreign investments withdrawn or unwound;

Removed:Article 16 – paragraph 2: 2. On the basis of the information received in accordance with paragraph 1, and based on its assessment of trends and developments, the Commission shall provide an annual report on implementation of this Regulation to the European Parliament and to the Council by 30 September of each year beginning in ... [the first year of application of this Regulation]. That report shall be made public.

Added:Article 16 – paragraph 1 – point f: (f) a description of the risks and vulnerabilities identified in the foreign investments that led to a screening decision;

Changed:Article 16 – paragraph 21 – subparagraphpoint 1f a (new): The Commission’s annual report shall contain the information referred to in(fa) the paragraph 1number of thisown Article.initiative Itprocedures shallopened alsopursuant containto anArticle assessment9(1) ofand the trends andnumber figuresof oninstances foreignwhere directthey investmentsresulted intoin the Union, relevant legislative developments in Memberinitiation Statesof anda internationalscreening cooperationprocedure activitiesby pursuantthe tohost ArticleMember 15.State.

Removed:Article 18 – paragraph 1: 1. The Commission shall evaluate the functioning and effectiveness of this Regulation 5 years after the date of application of this Regulation and every 5 years thereafter and present a report to the European Parliament and to the Council. Member States shall be involved in this exercise and, if necessary, provide the Commission with additional information for the preparation of that report. The report shall in particular include an assessment of the contribution of this Regulation to the economic security of the Union.

Added:Article 16 – paragraph 1 a (new): 1a. By ... [1 January of the first year of application], the Commission shall adopt an implementing act pursuant to Article 21 setting out the form to be used for reporting the information referred to in paragraph 1 of this Article.

Removed:Article 19 – paragraph 2 a (new): 2a. The first of the delegated acts referred to in paragraph 2 of this Article shall be adopted by ... [12 months from the date of entry into force of this Regulation] for the purpose of amending Annex II to further specify the list of technologies, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union.

Added:Article 16 – paragraph 2: 2. Based on the information received in accordance with paragraph 1, its implementation practice, and its assessment of trends and developments, the Commission shall provide an annual report on implementation of this Regulation to the European Parliament and to the Council by 30 September of each year beginning in ... [the first year of application of this Regulation]. That report shall be made public.

Removed:Article 20 – paragraph 2: 2. The power to adopt delegated acts referred to in Article 19 shall be conferred on the Commission for a period of five years from ... [the date of entry into force of this Regulation]. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

Added:Article 16 – paragraph 2 a (new): 2a. The Commission’s annual report shall include an overview of the information referred to in paragraph 1 for each Member State, an assessment of the trends and figures on foreign investments into the Union, relevant legislative developments across Member States, international cooperation efforts, lessons learnt, and best practices to support the implementation of this Regulation.

Removed:Article 21 – paragraph 1: 1. The Commission is empowered to adopt implementing acts setting out: / (a) the forms to be used to provide the information indicated in Article 10(1); / (b) the form to be used for filings via the single portal pursuant to Article 12a; and / (c) the modalities for the functioning of the single portal and the secure and encrypted system described in Article 12a.

Added:Article 18 – paragraph 1: 1. The Commission shall evaluate the functioning and effectiveness of this Regulation 3 years after the date of application of this Regulation and every 5 years thereafter and present a report to the European Parliament and to the Council. Member States shall be involved in this evaluation process and, if necessary, provide the Commission with additional information for the preparation of that report. That report shall include an analysis of the evolution of foreign investments into the Union as well as an assessment of the contribution of this Regulation to the economic security of the Union. It should include an assessment of whether the conditions set out in Article 4(4) and (4a) should be amended in order to ensure a consistent approach to the screening of foreign investments, taking into consideration the criteria set out in Article 13(3) and (4), including the security of military facilities and other sensitive public facilities. The report shall also assess the compliance costs faced by businesses.

Removed:Annex II – point 5 a (new): 5a. Aeronautics infrastructures and technologies, as covered in particular by Regulation (EU) 2018/1139 of the European Parliament and of the Council1a. / 1a Regulation (EU) 2018/1139 of the European Parliament and of the Council of 4 July 2018 on common rules in the field of civil aviation and establishing a European Union Aviation Safety Agency, and amending Regulations (EC) No 2111/2005, (EC) No 1008/2008, (EU) No 996/2010, (EU) No 376/2014 and Directives 2014/30/EU and 2014/53/EU of the European Parliament and of the Council, and repealing Regulations (EC) No 552/2004 and (EC) No 216/2008 of the European Parliament and of the Council and Council Regulation (EEC) No 3922/91 (OJ L 212, 22.8.2018, p. 1).

Added:Article 19 – paragraph 2 – introductory part: 2. The Commission is empowered to adopt delegated acts in accordance with Article 20 for the purposes of amending, where necessary, the list of technologies, materials, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union set out in Annex II to take account of changes in the circumstances relevant to the security or public order interests of the Union. In particular, these considerations shall include the following:

Added:Article 19 – paragraph 2 – point b a (new): (ba) the results of relevant risk assessments undertaken by the Commission and Member States under the Union Economic Security Strategy;

Added:Article 19 – paragraph 2 a (new): 2a. The first of the delegated acts referred to in paragraph 2 of this Article shall be adopted by ... [9 months from the date of entry into force of this Regulation] for the purpose of amending Annex II to further specify the list of technologies, materials, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union.

Added:Article 20 – paragraph 2: 2. The power to adopt delegated acts referred to in Article 19 shall be conferred on the Commission for a period of five years from ... [the date of entry into force of this Regulation]. The Commission shall draw up a report in respect of the delegation of power no later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or Council opposes such extension no later than three months before the end of each period.

Added:Article 21 – paragraph 1: deleted

Added:Article 21 – paragraph 2: 2. Implementing acts referred to in Article 10(2), Article 12a(3), Article 12a(6) and Article 16(1a) shall be adopted in accordance with the advisory procedure referred to in Article 22(2).

Added:Article 23 – paragraph 1: Regulation (EU) 2019/452 is repealed with effect from ... [12 months from the date of entry into force of this Regulation].

Added:Article 24 – paragraph 2: It shall apply from ... [12 months from the date of entry into force of this Regulation].

Added:Article 24 – paragraph 2 a (new): However, Article 19(2) and (2a) shall apply from ... [the date of entry into force of this Regulation]. / This Regulation shall apply regardless of whether the single portal referred to in Article 12a(2) is operational.

Added:Annex I – point 7 – paragraph 2: Regulation (EU) 2024/1679 of the European Parliament and of the Council of 13 June 2024 on Union guidelines for the development of the trans-European transport network, amending Regulations (EU) 2021/1153 and (EU) No 913/2010 and repealing Regulation (EU) No 1315/2013 (OJ L 1679, 28.6.2024, ELI: http://data.europa.eu/eli/reg/2024/1679/oj).

Added:Annex I – point 17 a (new): 17a. European Defence Industry Programme (EDIP) / [Reference to be added once the Regulation has been adopted.]

Added:Annex I – point 20 a (new): 20a. Projects of common interest and projects of mutual interest / Commission Delegated Regulation (EU) 2024/1041 of 28 November 2023, amending Regulation (EU) 2022/869 of the European Parliament and of the Council as regards the Union list of projects of common interest and projects of mutual interest. (OJ L 107, 26.3.2021, p. 1, ELI: http://data.europa.eu/eli/reg_del/2024/1041/oj).

Added:Annex II – subheading 1: List of technologies, materials, assets, facilities, equipment, networks, systems, services and economic activities of particular importance for the security or public order interests of the Union

Added:Annex II – point 3 – point a – introductory part: a. Semiconductors technologies:

Added:Annex II – point 3 – point a – indent 1: – design of integrated circuits and other semiconductors, including microprocessors, graphic processors, microcontrollers, logic chips, memory chips, radio frequency chips, photonic chips, analog chips, quantum chips, optical semiconductors, power semiconductors, discretes and sensors / microsystem, as well as related semiconductor intellectual property core

Added:Annex II – point 3 – point a – indent 2: – electronic design automation software for the design of integrated circuits and other semiconductors, or for the design of advanced packaging

Added:Annex II – point 3 – point a – indent 3: – front-end fabrication of integrated circuits and other semiconductors

Added:Annex II – point 3 – point a – indent 4: – assembly, testing and packaging of integrated circuits and other semiconductors, including advanced printed circuit boards and packaging

Added:Annex II – point 3 – point a – indent 4 a (new): – semiconductor manufacturing equipment, both for the front-end and back-end fabrication of integrated circuits and other semiconductors, including etching, deposition, epitaxy, lithography, advanced packaging, testing or metrology tools

Added:Annex II – point 3 – point a – indent 4 b (new): – core components or software of semiconductor manufacturing equipment

Added:Annex II – point 3 – point a – indent 4 c (new): – materials used in the fabrication of integrated circuits and other semiconductors, in particular specialty chemicals, rare gases, semiconductor materials, substrates or wafers

Added:Annex II – point 3 – point a – indent 4 d (new): – data storage and processing equipment and facilities

Added:Annex II – point 3 – point b – introductory part: b. Artificial intelligence technologies, meaning any technology or know-how related to a machine-based system that is designed to operate with varying levels of autonomy and that may exhibit adaptiveness after deployment, and that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments (‘AI system’), used for the following applications:

Added:Annex II – point 3 – point b – indent 1: – generative AI systems trained using more than 10^25 FLOPS (floating point operations)

Added:Annex II – point 3 – point b – indent 2: – generative AI systems trained in a significant part on biological/ genomic data, or designed to be used in a biotechnological, space or defence context

Added:Annex II – point 3 – point b – indent 3: deleted

Added:Annex II – point 3 – point b – indent 4: deleted

Added:Annex II – point 3 – point e – indent 1: – Secure digital communications and connectivity, such as RAN & Open RAN (Radio Access Network), 5G and 6G, laser and light communication

Added:Annex II – point 3 – point e – indent 2: – Cyber security technologies incl. cyber-surveillance, encryption, security and intrusion prevention and detection systems, digital forensics

Added:Annex II – point 3 – point e – indent 5 a (new): – Submarine fibre-optic cables

Added:Annex II – point 3 – point g – indent 5 a (new): – Operational technologies for all transport modes, such as signalling systems, traffic management systems and safety-related technologies

Added:Annex II – point 3 – point h – introductory part: h. Energy technologies, services and infrastructure:

Added:Annex II – point 3 – point h – indent 1: – Nuclear technologies, reactors and power generation, radiological conversion/enrichment/recycling technologies, nuclear storage and disposal of radioactive waste

Added:Annex II – point 3 – point h – indent 3: – Net-zero technologies, including photovoltaics and solar thermal infrastructure, as well as onshore and offshore renewable energy technologies

Added:Annex II – point 3 – point h – indent 3 a (new): – Grid operators (TSOs and DSOs)

Added:Annex II – point 3 – point h – indent 4: – European and cross-border grids, including smart grids and energy storage solutions, batteries, battery technologies for grid applications and renewable energy integration

Added:Annex II – point 5: 5. The following critical entities and activities in the Union’s financial system: / (a) central counterparties or CCPs as defined in Article 2, point (1), of Regulation (EU) No 648/20122; / (b) payment systems and payment institutions as defined in Article 4, points (7) and (4) respectively, of Directive (EU) 2015/2366 of the European Parliament and of the Council3; / (c) electronic money institutions as defined in Article 2, point (1), of Directive 2009/110/EC of the European Parliament and of the Council4; / (d) market operators as defined in Article 4(1), point (18), of Directive 2014/65/EU of the European Parliament and of the Council5 and investment firms that operate a multilateral trading facility or an organised trading facility; / (e) central securities depositories as defined in Article 2(1), point (1), of Regulation (EU) No 909/2014 of the European Parliament and of the Council6; / (f) significant issuers of asset-referenced tokens or e-money tokens and crypto asset service providers operating trading platforms for crypto-assets as defined in Article 3(1), points (10), (6), (7), (15) and (18), respectively, of Regulation (EU) 2023/1114 of the European Parliament and of the Council7; / (g) large institutions as defined in Article 4(1), point (146), of Regulation (EU) No 575/2013 of the European Parliament and of the Council8; / (h) global providers of specialised financial messaging services and designated critical ICT third-party service providers as defined in Ar…

Added:Annex II – point 5 a (new): 5a. Transport industries, technologies and infrastructure components of critical importance: / (a) Aerospace manufacturing industry, including the production, maintenance and operation of aircraft, as well as their engines, propellers, parts, non-installed equipment and equipment1a / (b) Maritime technology industry, including, production, maintenance and conversion of all types of ships1b and equipment1c / (c) Rail industry, including all aspects of design, manufacturing, maintenance and refurbishment of rail transport systems, subsystems and related equipment1d / (d) Automotive industry, including automotive suppliers1e, refuelling infrastructure, including electric charging infrastructure1f and intelligent transport systems (ITS)1g / 1a Article 2.1 (a) (b) Regulation (EU) 2018/1139 of the European Parliament and of the Council of 4 July 2018 on common rules in the field of civil aviation and establishing a European Union Aviation Safety Agency, and amending Regulations (EC) No 2111/2005, (EC) No 1008/2008, (EU) No 996/2010, (EU) No 376/2014 and Directives 2014/30/EU and 2014/53/EU of the European Parliament and of the Council, and repealing Regulations (EC) No 552/2004 and (EC) No 216/2008 of the European Parliament and of the Council and Council Regulation (EEC) No 3922/91. / 1b Article 12 (a, b, c) Framework of State Aid to Shipbuilding O2011/C 364/06). / 1c Article 2 (1) Directive 2014/90/EU of the European Parliament and of the Council of 23 July 2014 on marine equipme…

Added:Annex II – point 5 b (new): 5b. Media services as defined in Article 2, point (1), of Regulation (EU) 2024/1083 of the European Parliament and of the Council of 11 April 2024 establishing a common framework for media services in the internal market and amending Directive 2010/13/EU (European Media Freedom Act) that contribute to public opinion formation and are characterised by particular topicality and broad impact.

Added:Annex II – point 5 c (new): 5c. Electoral infrastructure: the physical and digital systems, processes, and facilities necessary for the organisation and conduct of elections, including voting systems, voter registration databases and other technological systems ensuring the integrity, accessibility, and security of electoral processes.

Added:Annex II – point 5 d (new): 5d. Critical raw materials as listed in Annexes I and II of Regulation (EU) 2024/12521a: / – extraction and refining of critical raw materials / – recycling and recovery technologies for critical raw materials, particularly from batteries and electronic waste / – strategic stockpiling and storage facilities for critical raw materials / – supply chain infrastructure for the secure transport and distribution of critical raw materials / – research and development into material substitution, processing innovations, and advanced recycling methods / 1aj Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024 establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020.

Added:Annex II – point 5 e (new): 5e. Farming, when the Union target possesses or operates more than 10,000 hectares of farmland.

Added:Article 7 – title: Comments by Member States and opinions and decisions by the Commission on notified foreign investments

Changed:Article 9 – paragraph 6: 6. The host Member State shall provide the complete information requested by the other Member States or the Commission pursuant to paragraph 5 without undue delay. Where the host Member State provides such information to a Member State, that information shall be sent to the Commission simultaneouslysimultaneously.

Changed:Article 10 – paragraph 5: 5. The host Member State and the Commission may request other Member States to seek information from undertakings in their territory, provided this information is relevant and strictly necessary for assessing a foreign investment pursuant to Article 13. The Member State receiving the request to seek information shall, without delay, request the undertaking to provide that information and shall notify it to the host Member State and the Commission, in accordance with the procedure set out in ArticlesArticle 8(2)8(5) and Article 9(6) as applicable.

Changed:Article 10 – paragraph 6: 6. A Member State shall notify the Commission and the other Member States concerned if, in exceptional circumstances, it is unable, despite its best efforts, to provide the information referred to in paragraphs 4 or 5 of this Article, in Article 8(5)8(2) or in Article 9(8).9(5). That Member State shall duly explain the reasons for not being able to provide the information.

Changed:Recital 9: (9) To ensure4: a(4) consistentIn approachaccordance towith foreignRegulation investment(EU) screening2019/452 acrossof the Union, all Member States should be required to screen foreign investments onEuropean theParliament groundsand of security or public order. Therefore, the core elements of national screening mechanisms should be harmonised. ThatCouncil4 minimuma harmonisationframework includeshas thebeen scopeset ofup investmentsfor toscreening beFDIs screened,into the screening procedure’sUnion essentialby features,Member theStates. interactionIn betweenparticular, thethat nationalRegulation mechanismhas andset theout Uniona cooperation mechanism and deadlines. In addition,enabling Member States should alsoand bethe ableCommission to extendexchange theinformation scopeon ofFDIs theirand nationalraise screeningconcerns mechanismabout torisks includeto othersecurity typesor ofpublic foreignorder. investments,That foreigncooperation investmentsmechanism inrequired otherthe sectors,Member additionalState Unionwhere targetsthe orFDI economicwas activitiesplanned thator thecompleted relevant(host Member State considersState) criticalto forgive itsdue securityconsideration orto publicthe order.comments Whenissued theyby doother so,Member suchStates screeningand shouldthe alsoopinion complyissued withby the provisionsCommission ofin thisits Regulation.screening decision.

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Changed:Recital 33: (33) A host Member14: State(14) mayIt informis otheralso Membernecessary Statesto ormake the Commission if it becomes aware of new circumstances orhost newMember informationState thatmore mayaccountable impactto the assessment of a notified foreignCommission investment.and Theto otherthose Member States and the Commissionthat mayexpress thenduly bejustified grantedconcerns additionalfor timetheir topublic complementorder theiror assessmentsecurity ofor the foreign investment.Union’s.

Changed:Article 8 – paragraph 4: 4. The notifying Member State shall notify the Commission and the other Member States any substantial new information or circumstances relevant for the assessment of a foreign investment already notified pursuant to Article 5. If this information is made available before the deadlines set out in paragraph 3 expire, the notifying Member State, the Commission and the other Member States shall endeavour to agree on a mutually acceptable extension of the deadline. If the deadlines for the assessment of the initial notification set out in paragraph 3 have passed, they shall resume according to the deadlines set out in point (c) and (d) of paragraph 3.