EU lawmakers have backed new rules that would require every member state to screen certain foreign investments in sensitive sectors such as defence, semiconductors and financial services.
MEPs approved the legislation by 508 votes to 64, with 90 abstentions, according to the European Parliament's release issued on Tuesday.
Under the agreed text with EU governments, mandatory checks would apply to foreign investments in areas including defence, artificial intelligence, critical raw materials and financial services, to assess potential security or public order risks.
The Parliament said the procedures used by national screening systems would be streamlined and cooperation between national authorities and the European Commission strengthened, including on cross-border cases.
The rules would also cover certain deals within the EU where the investor is ultimately owned by individuals or entities from a non-EU country.
What happens next
The new regulation still needs formal approval by the Council, which represents EU member states, before it can enter into force, the European Parliament said.
If adopted, it would apply 18 months after entering into force.
The European Commission submitted a proposal for an “Industrial Accelerator Act” on 4 March 2026, after committing to take the initiative on setting conditions for foreign investment in specific strategic sectors.
