Strengthening the screening of foreign investments

In a militant context in favour of promoting European sovereignty, the Union definitively adopted on 17 June a new text to govern the screening, by States, of investments in the EU from third countries (Regulation (EU) 2026/1386 of 17 June 2026 which replaces Regulation (EU) 2019/452).

What changes with the new text?

First, filtering by States becomes mandatory. Whereas regulation 2019/452 was content with a cooperation framework leaving each State free to establish or not a national mechanism, the new regulation requires all Member States to put in place a filtering mechanism.

Next, the scope is broadened. It no longer targets only direct investments from third countries, but also investments made via a European subsidiary controlled by a foreign investor (intra-Union investments), in order to prevent circumvention.

Furthermore, the text contains a common minimum list of sensitive sectors that require prior authorization: dual-use and military goods, semiconductors, quantum technologies and artificial intelligence, strategic raw materials, critical infrastructure (transport, energy, digital), systemic financial infrastructure, electoral systems.

Finally, to limit ourselves here to the essentials, the text also harmonizes procedures: initial examination capped at 45 days, aligned deadlines for comments from Member States and opinions from the Commission, enhanced coordination for multinational operations, European online portal, secure database and mandatory effective sanctions.

Entry into force and application

The regulation came into force on July 16th, but its application will begin on 17th January 2028, the date on which Regulation 2019/452 will be repealed. However, certain provisions apply from 16 July 2026, which are addressed mainly to the European Commission or to the Member States and which are intended to allow the effective application of certain aspects of the text when it enters into force (European form, European portal etc).

Implications under French law

France already has a system for controlling foreign investment in France, governed by the Monetary and Financial Code and overseen by the Minister for the Economy. This system, which has been strengthened several times in recent years, will need to be revised again by January 17, 2028, to fully comply with the new regulations. The preparatory work undertaken by the Ministry of the Economy, Finance, and Industrial, Energy, and Digital Sovereignty should lead to legislative and regulatory reform in the coming months.

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