Article

On December 11, 2025, the Council of the European Union and the European Parliament reached a provisional agreement to revise the Foreign Direct Investment Screening Regulation, aimed at enhancing the FDI screening framework to mitigate economic and national security risks while preserving the EU's investment appeal. The updated regulation will implement more rigorous scrutiny of transactions in sensitive sectors, including artificial intelligence and defense, with formal adoption expected in early 2026 and implementation in 2027. Investors are advised to stay informed and adjust their strategies in response to these legislative changes.