New EU Rules on Foreign Direct Investment

An EU Regulation establishing a framework for screening foreign direct investments into the EU has been approved.

On 5 March 2019, the Council of the EU approved a Regulation establishing a framework for the screening of foreign direct investments into the EU; it was the final stage of the legislative process that began with a Commission proposal in 2017.

The Regulation is due to be officially published on 21 March 2019, and it is expected to apply from around October 2020.

This legislation aims to better scrutinise direct investments coming from third countries on the grounds of security or public order.

The Commission is set to take a largely procedural and coordinating function in connection with reviews conducted by Member States. While the practical implications of the Regulation will need to be kept under review, each Member State will remain firmly in charge of its own FDI controls and it is not anticipated that the Regulation will affect the attractiveness of Ireland as an FDI destination.

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