EU to Ask All Member States to Screen Foreign Direct Investments

The European Union will next week propose new rules to increase powers to screen and potentially block foreign investment in sensitive industries as part of its efforts to ensure economic security.

A proposed regulation, seen by Bloomberg, will ask all member states to put in place screening mechanisms and will widen the scope of existing rules to include investments made by companies that are either directly or indirectly controlled by foreign entities and could impact public order and security.

“A significant share of FDIs in the EU still go to member states that do not have a screening mechanism and ...