On October 14, 2026, the European Commission (Commission) published its sixth annual report on the screening of foreign direct investments (FDI) into the Union (the Report). Notable findings:

  • New FDI Regulation. The adoption in June 2026 of the new Foreign Investment Screening Regulation (FISR), which repeals the 2019 FDI Screening Regulation, represents an important milestone in the EU’s economic security agenda. The FISR will apply from January 17, 2028 after an 18-month transition period.
  • FDI inflow. The U.S. and the UK remained the top two sources of M&A driven FDI (together c. 54% of foreign M&A), landing primarily in Western Europe. In 2025, Information Communication and Technology (ICT) overtook Manufacturing, with Professional, Scientific and Technical activities (PST), Finance, and Retail rounding out the top five. For greenfield investments, Accommodation jumped into second place behind Retail.
  • Active FDI regimes. All 27 Member States have now adopted FDI screening regimes, with Croatia, Cyprus, and Greece adopting national FDI screening laws in 2025.
  • EU cooperation mechanism. The number of FDI filings reviewed within the mechanism was 667 in 2025, a sharp 40% jump from 477 in 2024 and 488 in 2023. It is the largest annual increase since the mechanism was created. These filings were shared by 21 EU Member States, and 65% originated from only four countries (Austria, France, Italy, Spain). 

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