Foreign Investment

On 11 December 2025, the Council and European Parliament reached political agreement to revamp the EU’s Foreign Investment Screening Regulation.  The revamp aims at responding to perceived growing risks to national and economic security in the EU. It forms part of the EU’s recently unveiled Economic Security Doctrine. While the full text has not…

Continue Reading The EU adopts revamped regime to screen foreign investment

The figures are fresh off the press: the European Commission published its Fifth Annual Report on the screening of foreign direct investments (“FDI”) into the European Union (“EU”) just a few days ago.[1] Like the previous editions, the Fifth Annual Report offers a statistical overview of the EU FDI framework’s…

Continue Reading EU’s Fifth FDI Annual Report: Five trends in Europe’s screening activities

The war in Ukraine, and other recent geopolitical conflicts, has underscored the need for EU-based defence capabilities to scale up to face these challenges. Several EU initiatives which have sought to stimulate investment are starting to bear fruit, as the European Defence Agency recently reported record high defence spendings in the EU (€350bn for 2024…

Continue Reading Five Key Points on FDI Screening in the EU Defence Sector

Introduction

On Thursday 8 May 2025, the EU took another important step towards revamping its framework to screen foreign investment, with the European Parliament adopting an amended version of the bill (the “EP Bill”, available here). That vote has now cleared the way for the next step in the legislative process: the tri-partite negotiations between the European Commission, the Council of the EU, and the European Parliament (aka “trilogue”) to arrive to a final text that will become law.

The EP Bill endorses the Commission proposal[1] that sought to bring more harmonisation/oversight over Member States, but also goes further and makes several ambitious additions to the Commission proposal in particular, the EP Bill would: (i) give new decision-making powers to the Commission in an area where such powers previously have squarely rested in the hands of the EU Member States, (ii) expand the list and scope of sectors in which foreign investments could undergo screening, and (iii) require reporting and screening of greenfield investments above a certain amount in many sectors.

This post explains these key proposed changes for non-EU investors and sets out how we see the prospects of these changes surviving the remainder of the legislative process.Continue Reading EP Approves Draft FDI Regulation Giving Extensive Powers to EC

The UK Parliament has passed emergency legislation to enable the government to direct the use of assets of British Steel, and to take control of assets if directions are not followed.

The government’s stated intention is “continuing the support of steel production in the UK [which] involves preserving current production capacity to ensure resilience in the production of steel”. The new law creates new powers for the government to intervene in relation to steelmaking businesses whose assets are at risk of ceasing to be used. If the operation of a steelmaking blast furnace, such as those operated by British Steel, is stopped, restarting its operation can be prohibitively expensive and it may be permanently unusable.

Following negotiations with its current owners (the Chinese steelmaker Jingye Group) on the future of British Steel, the government announced on Friday its intention to recall Parliament the following day to introduce a draft bill and complete the full legislative process within a single day. The bill was passed by both Houses of Parliament and received royal asset on Saturday 12 April, coming into force on the same day, as the Steel Industry (Special Measures) Act 2025 (the “Act”).

This is the first time that Parliament has responded to a perceived crisis in a UK industry by extending the government’s powers to intervene in specific industries for “public interest” reasons since 2008, in the context of the Global Financial Crisis. In that case, Parliament passed legislation to enable the government to nationalise the Northern Rock bank (and subsequently other banks), and later that year the government’s public interest intervention powers under the Enterprise Act 2002 were expanded in order to allow the government to override competition concerns in the Lloyds/HBOS merger. In contrast to previous measures that provide the government with powers to acquire businesses and to intervene in potential mergers and acquisitions between businesses, the new Act applies outside of the context of a transaction or takeover. Specifically, the new Act applies where specific assets may cease (or have ceased) to be used in a steel manufacturing business but the government considers that it is in the public interest that the use of the assets should continue.Continue Reading UK passes emergency legislation to authorize “public interest” directions on use of British Steel assets

In November 2024, the UK’s High Court (the “Court”) issued its judgment on the first appeal of a Final Order (“Order”) imposed by the UK government (acting through the Secretary of State) under the UK’s National Security and Investment Act 2021 (the “NSIA”).

Under UK public law, decisions such as the Order can only be challenged on a judicial review basis – i.e., on the process and not on the merits. The Court not only confirms this position, but also clearly indicates limits to the scope of UK courts’ powers to opine on the substance of national security risk and reveals a wide margin of discretion for the UK government.Continue Reading Five takeaways from the first court challenge to a UK NSIA Final Order

The European Commission (the “Commission”) issued a White Paper on Outbound Investments (the “White Paper”) on 24 January 2024, setting out non-binding proposals for a detailed analysis of EU outbound investment. With its initiative, the Commission aims to understand whether the current limited regulation in the area of outbound investments is…

Continue Reading Outbound investment screening in the EU – A major step forward?

On 24 January 2024, the European Commission (the “Commission”) published its European Economic Security Package (the “EESP”), which included the long-awaited proposal to reform the EU Regulation which established a framework for Foreign Direct Investment screening (the “EU FDI Regulation”). The EESP’s proposed regulation (the “Proposed Regulation”)…

Continue Reading Draft EU Screening Regulation – a new chapter for screening foreign direct investments in the EU

Recent proposals to amend the UK’s national security investment screening regime mean that investors may in future be required to make mandatory, suspensory, pre-closing filings to the UK Government when seeking to invest in a broader range of companies developing generative artificial intelligence (AI). The UK Government launched a Call for Evidence in…

Continue Reading UK Government Consults on Amending Mandatory Filing Obligations for AI Acquisitions

In quick succession on 7 and 15 November 2023, the Administrative Court of Berlin (Verwaltungsgericht Berlin, the “VG Berlin”) has ruled on procedural matters in foreign direct investment review proceedings of the Federal Ministry for Economic Affairs and Climate Action (the “BMWK”) in two hearings. Because court rulings on these non-public administrative proceedings…

Continue Reading Berlin court clarifies significant German FDI issues