The European Commission has published today On Thursday Annual Report on the control of direct foreign investment (FDI) to European Union (EU). The report is accompanied by a work document of the Commission Services. According to the report, the number of notifications under the EU cooperation mechanism increased by 15% compared to 2021, one year after the entry into force of the Regulation concerned.

In 2024 EU Member States have notified 477 investments, raising questions from other Member States in about 10% of cases. Of the 477 cases notified, most (92%) were completed within two weeks. The remaining 8% was subjected to a thorough risk assessment for safety. About half of these thorough evaluations were in the process of manufacturing, and were often due to concerns about possible leakage of technology or knowledge, as well as supply safety issues. Like last year, the Commission issued opinions in less than 2% of cases. The report shows that, by the end of 2024, 24 EU Member States had adopted national law control legislation.

In January 2024, the Commission submitted a legislative proposal to further strengthen the applicable Union APE Control Framework. If the co -co -factor in agreement, the revised regulation will make it mandatory for all EU Member States to establish and maintain a national FDI control mechanism and the introduction of a minimum level of harmonization throughout the EU.

Lena Flitzan