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Foreign Investment & National Security

EU investment screening moves toward mandatory coverage of strategic sectors

The European Parliament approved revised rules for mandatory member-state screening of foreign investments in defence, semiconductors, AI, critical raw materials and financial services by 508 votes to 64, with 90 abstentions.

BY GEOPOLITICS DESK · MAY 21, 2026 · 1 MIN READ

The European Parliament approved revised rules for mandatory member-state screening of foreign investments in defence, semiconductors, AI, critical raw materials and financial services by 508 votes to 64, with 90 abstentions. Deal counsel should note the intra-EU look-through rule for investors ultimately owned by non-EU persons and the 18-month application period after Council approval and entry into force.

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