EU Parliament Passes New Foreign Investment Rules

The European Parliament has approved new legislation to screen foreign direct investment in sensitive sectors including artificial intelligence and semiconductors. The rules aim to protect critical infrastructure and will require formal Council approval before taking effect in 18 months.

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The European Parliament approved new foreign direct investment rules to tighten oversight of capital inflows from non-EU actors. The legislation expands screening requirements across the 27-nation bloc for the first time since the previous framework was established. For investors, the move signals a more restrictive regulatory environment for cross-border deals involving sensitive European assets and infrastructure.

Tightening the Net on Critical Sectors

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