STORY
The European Parliament has approved new rules making screening of foreign investments mandatory in sensitive sectors across all member states. MEPs backed the agreement with EU governments by 508 votes to 64, with 90 abstentions.
The revised framework covers areas including defence, semiconductors, artificial intelligence, critical raw materials and financial services. It is designed to identify potential risks to security or public order while keeping the EU open to foreign investment where there is no strategic threat.
The legislation strengthens co-operation between national screening authorities and the European Commission, including on transactions within the EU where the ultimate owner is based outside the bloc. The Council still needs to give final approval before the new rules enter into force, with application expected 18 months later.