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European Commission proposes framework to screen certain foreign direct investments


The European Commission has put forward proposals for a European framework for screening of foreign direct investments on grounds of public order or security, including investments in sectors such as technology, cybersecurity, nuclear power, and financial services.

The proposals also include a cooperation mechanism between Member States and the European Commission that can be activated when a foreign direct investment in one Member State may affect the security or public order of another, and European Commission screening on grounds of public order or security for cases in which foreign direct investment may affect projects or programs of Union interest.

The new coordination mechanism between Member States and the Commission and the possibility for the Commission to review and issue non-binding opinions regarding certain foreign investments could result in an extra hurdle for some transactions involving non-EU investors, as this Latham briefing explains.

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