Daily Management Review

European Parliament approves rules to protect EU from foreign investment risks


05/09/2025


On Thursday, the European Parliament (EP) approved updated regulations regarding “mitigating security threats from foreign investments,” according to the EP press office.



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The proposal received approval with 378 votes for, 173 opposed, and 24 abstaining.

The EP communiqué stated that with the new regulations, areas like media services, essential raw materials, and transport infrastructure will face mandatory inspections by Member States to detect and mitigate security or public order threats stemming from foreign investments.

The text clarifies that “the processes of national screening systems will be aligned, and the European Commission will possess the authority to act independently or in scenarios where Member States disagree about potential risks to security or public order arising from certain foreign investments.”

At present, the EU's framework for evaluating foreign investments is “disjointed, expensive for investors, and insufficiently effective in managing risks. Allowing significant industrial firms, energy infrastructures, and media corporations to be vulnerable to foreign acquisitions - be it from China, the US, or others - inevitably jeopardizes our security and economic independence,” stated EP rapporteur, French MEP Raphael Glucksmann.

source: reuters.com