European Commission approves new regulations on foreign investment regulation

- According to information published by the European Commission, on 5 March 2019 the European Council adopted a regulation establishing a framework for the screening of foreign direct investments into the EU. The regulation, which will enter into force in April, will enable cooperation between the 28 member states of the European Union to screen foreign direct investment to protect security, public order and strategic interests. According to reports, the new foreign investment regulation adopted by the EU stipulates that, when foreign investment plans in EU member states pose a threat to the security or public order of more than one member state. Or when undermining the overall interests of the EU, the European Commission has the right to express its opinions and asks member states to cooperate with the investigation. This includes investments in sensitive technologies and infrastructure. However, EU member states still have the final approval authority for foreign investment in their country.