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Foreign Investment & National Security

EU foreign-investment screening becomes mandatory in strategic sectors

The European Parliament approved new rules requiring mandatory screening for foreign investments in sensitive sectors including defence, semiconductors, AI, critical raw materials and financial services.

BY GEOPOLITICS DESK · MAY 28, 2026 · 1 MIN READ

The European Parliament approved new rules requiring mandatory screening for foreign investments in sensitive sectors including defence, semiconductors, AI, critical raw materials and financial services. Cross-border M&A counsel should note that the regime also captures intra-EU transactions where the investor is ultimately owned by non-EU individuals or entities, making beneficial-ownership mapping central to deal timing.

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