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Adopted text, 19 May 2026

Screening of foreign investments in the Union

Document TA-10-2026-0171 · P10_TA(2026)0171 · PE767.951

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AI:In short

Parliament's position on a regulation to screen foreign investments in the Union, replacing Regulation (EU) 2019/452. It sets out rules for screening and cooperation among member states. Parliament and the Commission agree to further action on foreign investments to avoid strategic dependencies and protect economic security, with the Commission planning targeted conditions for strategic sectors.

Key points

  1. Parliament adopts its position at first reading on the proposed regulation on screening foreign investments, which corresponds to the final legislative act.
  2. Parliament approves a joint statement with the Commission on the need for further action on foreign investments and economic security.
  3. The Union should remain attractive for business, with foreign investments contributing to growth and competitiveness, especially in strategic sectors.
  4. Certain investments risk creating strategic dependencies and undermining internal market resilience, weakening economic security and technological edge.
  5. It is a priority to assess and take further action at Union level to address risks and safeguard economic security.
  6. The Commission intends to set targeted conditions for inbound foreign investments in identified strategic sectors, respecting international commitments.
  7. Parliament acknowledges the Commission's commitment and is ready to consider any proposal as co-legislator.

Who is affected

  • Foreign investors seeking to invest in the Union, especially in strategic sectors, will face screening and potential conditions.
  • Member states and Union institutions will cooperate on screening to protect economic security.

Legal basis. Articles 114 and 207 of the Treaty on the Functioning of the European Union

Written by AI from the full text · every figure comes from the text · ¶ opens the paragraph · 4 Sept 2026 · Report a problem

Full text

Text 27 paragraphs

Committee on International Trade

European Parliament legislative resolution of 19 May 2026 on the proposal for a regulation of the European Parliament and of the Council on the screening of foreign investments in the Union and repealing Regulation (EU) 2019/452 of the European Parliament and of the Council (COM(2024)0023 – C9-0011/2024 – 2024/0017(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

–having regard to the Commission proposal to Parliament and the Council (COM(2024)0023),

–having regard to Article 294(2) and Articles 114 and 207 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C90011/2024),

–having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–having regard to the opinion of the European Economic and Social Committee of 10 July 2024,

–having regard to the opinion of the Committee of the Regions of 20 November 2024,

–having regard to the provisional agreement approved by the committee responsible under Rule 75(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 10 February 2026 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

–having regard to Rule 60 of its Rules of Procedure,

–having regard to the opinions of the Committee on Economic and Monetary Affairs, the Committee on Industry, Research and Energy, the Committee on the Internal Market and Consumer Protection and the Committee on Transport and Tourism,

Read the rest (15 paragraphs)

–having regard to the report of the Committee on International Trade (A10-0061/2025),

1.Adopts its position at first reading hereinafter set out;

2.Approves the joint statement by Parliament and the Commission annexed to this resolution, which will be published in the C series of the Official Journal of the European Union;

3.Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

4.Instructs its President to forward its position to the Council, the Commission and the national parliaments.

P10_TC1-COD(2024)0017

Position of the European Parliament adopted at first reading on 19 May 2026 with a view to the adoption of Regulation (EU) 2026/… of the European Parliament and of the Council on the screening of foreign investments in the Union and repealing Regulation (EU) 2019/452

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2026/1386.)

ANNEX TO THE LEGISLATIVE RESOLUTION

Joint statement by the European Parliament and the Commission on the need for further action on foreign investments and economic security

The European Parliament and the Commission agree that the Union needs to remain an attractive place to do business, ensuring that foreign investments, especially in strategic sectors, contribute to economic growth and competitiveness.

The two institutions acknowledge, however, that certain investments risk creating strategic dependencies and undermining the resilience of the internal market. These developments risk weakening the Union’s economic security and may undermine the Union’s technological edge, economic resilience and capacity to create jobs.

Against this background, the two institutions consider it a priority to assess and take the necessary further action at Union level to address such risks and to safeguard the Union’s economic security in order to ensure that foreign investments in the Union do not increase strategic dependencies or technological gaps.

The Commission intends to take an initiative to set out targeted conditions for inbound foreign investments in carefully identified strategic sectors, in line with the Union's international commitments, with a view to boosting Union industry’s competitiveness and addressing the above-mentioned risks.

The European Parliament acknowledges this commitment and is ready to exercise fully its role as co-legislator and to consider any such proposal in a timely manner.