REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Fifth Annual Report on the screening of foreign direct investments into the Union
Date: 2025-10-14
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: EU Member State, activity report, direct investment, financial control, foreign capital, foreign investment, investment policy, third country

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 14.10.2025  COM(2025) 632 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Fifth Annual Report on the screening of foreign direct investments into the Union {SWD(2025) 296 final}  
 
 
INTRODUCTION  

This  report  is  the  European  Commission’s  fifth  annual  report  on  the  application  of  the  EU 
Foreign  Direct  Investment  (FDI)  Screening  Regulation  (the  ‘FDI  Screening  Regulation’  or  the 
‘Regulation’).  

The report covers 2024 and provides transparency on the operation of FDI screening in the EU 
and developments  in  national screening  mechanisms. It  contributes to  the accountability  of the 
EU in an area where, given the security interests at stake, transparency on individual transactions 
is neither possible nor appropriate.  

It is based on reports by the 27 Member States and other sources and consists of four chapters: 

▪  Chapter 1 on trends and figures for FDI into the EU;  

▪  Chapter 2 on legislative developments in Member States;  

▪  Chapter 3 on FDI screening activities carried out by Member States;  

▪  Chapter 4 on the EU cooperation mechanism on FDI screening. 

This  annual  report  is  an  important  tool  for  strategic  trade  and  investment  controls  to  ensure 
security in the EU.  

1 

 
 
 
 
CHAPTER 1 – FOREIGN DIRECT INVESTMENT INTO THE EUROPEAN UNION 

1.  Overall trends  

The stock of FDI1 increased by 7.5% between 2023 and 2024. More specifically, foreign mergers 
and acquisitions (M&A) and greenfields experienced annual cumulative increases of 10% (from 
20 329  to  22 302)  and  6.0%  (from  28 405  to  30 108),  respectively  (Figure  1,  columns).  This 
increase  is  consistent  with  trends  observed  since  2015,  with  the  stock  of  FDI  into  the  EU27 
continuously  growing  over  this  10-year  period  by  an  average  of  almost  5 250  FDIs  each  year. 
Looking at this trend by FDI type, the EU27 received an  average of 2 230 foreign M&A deals 
and  3 011  foreign  greenfield  investments  each  year  between  2015  and  2024.  These  positive 
cumulative  trends  confirm  the  openness  of  EU  Member  States  to  foreign  investments, 
highlighting their attractiveness to international investors. 

Figure 1: 2015-2024 yearly FDI stocks and flows into the EU27 (number of deals and projects) 

Source: JRC elaboration based on Bureau van Dijk data, extracted on 26 March 2025 from Orbis M&A and Orbis Crossborder Investment. Data 
for 2015 corresponds to the flows of FDI in 2015, while data represented in the bars in subsequent years correspond to the cumulated sum of 
yearly flows.  

Total  FDI  inflows  (Figure  1,  lines)  experienced  a  downward  trend  in  the  last  two  years,  with 
declines of 23% from 2022 to 2023 and 8.4% from 2023 to 2024, respectively. However, looking 
at  the  number  of  FDIs,  M&A  and  greenfield  investments  reacted  differently.  Specifically,  the 
flow of foreign M&A deals, which had experienced a robust recovery in 2021, declined by 3.6% 
in  2022  and  by  15%  in  2023,  before  rebounding  with  a  2.7%  increase  in  2024.  Greenfield 

1  Foreign  direct  investment  transactions  can  be  broken  down  into  greenfields  and  M&As.  International greenfield 
investments  typically  involve  the  creation  of  a  new  company  or  establishment  of  facilities  abroad,  while  an 
international M&A amounts to transferring the ownership of existing assets relating to an economic activity to an 
owner abroad. M&As are included if they imply an acquisition of equity stakes above 10% of the capital of an 
EU27 business. 

2 

 
 
 
 
investment flows, on the other hand, experienced a 23% increase in 2021 and a 13% increase in 
2022.  However,  this  positive  trend  was  followed  by  two  consecutive  years  of  decline  (29%  in 
2023 and 19% in 2024). The downward year-on-year trend of FDI flows observed in 2023 and 
partially  in  2024  (for  greenfields)  could  be  attributed  to  persisting  and  ongoing  uncertainties2 
affecting the EU economy and investors’ risk perception.  

2.  Top countries of origin of foreign investors 

A comparison between 2023 and 2024 foreign M&A deals by jurisdiction of origin (Figure 2, left 
chart) shows an overall increase in  2024 compared to  2023 for all top  jurisdictions, except  the 
UK, offshore financial centres (OFCs) and Canada. By contrast, the decline in the total number 
of greenfield investments observed in 2024 reflected a reduction in the number of projects from 
all jurisdictions, with the exception of Canada, where the number remained unchanged (Figure 2, 
right chart). 

Figure  2:  Number  of  acquisitions  of  equity  stakes  (left)  and  greenfield  investments  (right)  into 
the EU by foreign jurisdiction (top 10 investors) in 2023 and 2024 

Source:  JRC  elaboration  based  on  Bureau  van  Dijk  data,  extracted  on  26 March 2025  from  Orbis  M&A  and  Orbis  Crossborder  Investment. 
OFCs: Offshore financial centres3. RoW: Rest of the world. 

The US was the top foreign investor in the EU in 2024, accounting for 30% of all acquisitions 
(597 deals) and 37% of greenfield investments (626 projects). While M&A deals originating in 
the US increased by 7% in 2024 compared to 2023, greenfield investments experienced a second 
consecutive yearly decline of 17% in 2024.  

Investors from the UK accounted for 23% (451 deals) of all acquisitions in 2024 and 24% (412 
transactions) of greenfield projects into the EU27, placing the UK second in the ranking of top 

2  Russia’s  war  of  aggression  against  Ukraine  entered  its  fourth  year  in  February  2025.  Additional  geopolitical 
tensions, such as the broadening and deepening of the Middle East conflict or the threat of escalating global trade 
tensions, were also sources of risk during 2024. 

3 The main offshore financial centres by number of transactions in 2024 are (in alphabetical order):, Bermuda, the 
British  Virgins  Islands,  the  Cayman  Islands,  Liechtenstein  and  Monaco.  For  the  full  list  of  offshore  financial 
centres,  see,  for  example,  Commission  Staff  Working  Document  -  Following  up  on  the  Commission 
Communication  ‘Welcoming Foreign  Direct  Investment  while  Protecting  Essential  Interests’  –  SWD(2019)  108 
final – 13 March 2019. 

3 

 
 
 
 
 
foreign  jurisdictions.  In  this  case,  the  number  of  both  M&A  deals  and  greenfield  projects 
declined  in  2024  compared  to  2023,  by  8.9%  and  13%,  respectively.  The  OFCs  and  Canada 
experienced a negative trend for M&A deals between 2023 and 2024, falling by 8.9% and 19%, 
respectively.  The  jurisdictions  with  the  largest  yearly  increases  in  foreign  M&A  deals  in  2024 
were  Singapore  (85%),  followed  by  Norway  (34%).  Finally,  the  number  of  M&A  deals 
originating  in  China  and  Hong  Kong  increased  by  23%  year-on-year  in  2024,  after  the  yearly 
decline of 20% observed in 2023. 

For  greenfield  investments,  the  number  of  FDIs  from  all  top  10  origin  jurisdictions,  except 
Canada,  decreased  in  2024  compared  to  2023,  with  annual  declines  ranging  from  46%  for 
Norway to 2.5% for China and Hong Kong. 

3.  Top EU destinations for foreign acquisitions 

The  number  of  foreign  M&A  deals  into  the  EU  was  unevenly  distributed  across  destination 
Member States (Figure 3, left chart). Most countries received more deals in 2024 than in 2023, 
except France, Spain, Ireland and Denmark, which received fewer deals. By contrast, the number 
of foreign greenfield investments into the EU (Figure 3, right chart) followed a different trend in 
2024, with only two countries (Sweden and Finland) experiencing an increase compared to 2023. 

Figure  3:  Number  of  acquisitions  of  equity  stakes  (left)  and  greenfield  investments  (right)  in 
2023 and 2024 by destination Member State (top 10 EU27 recipients) 

Source:  JRC  elaboration  based  on  Bureau  van  Dijk  data,  extracted  on  26 March 2025  from  Orbis  M&A  and  Orbis  Crossborder  Investment. 
RoEU27 stands for ‘rest of EU27’. 

Germany and France were the main destinations for foreign M&A deals in 2024, accounting for 
21% (412 deals) and 13% (264 deals) of the total amount of deals, respectively. However, their 
year-on-year trends in 2024 were different with an increase in the number of deals in Germany 
(17%) and a decrease in France (1.1%). Despite this slight decline, France overtook Spain as an 
FDI  recipient  and  ranked  second  in  2024.  Spain  placed  third  in  2024  with  a  12%  share  (230 
deals).  Besides  France  and  Spain,  two  other  Member  States,  Ireland  (-26%)  and  Denmark 
(-9.1%), received fewer foreign M&A deals in 2024 than in 2023. Meanwhile, Poland recorded 
the strongest increase in M&A activity in 2024 (39%), followed by the Netherlands (30%). 

4 

 
 
 
 
The  top  two  recipients  of  foreign  greenfield  investments  in  2024  were  Spain  and  Germany, 
which received 24% (412 transactions) and 12% (212 transactions) of all projects  respectively. 
They  were  closely  followed  by  France  (11%,  191  transactions).  The  year-on-year  decline  in 
project  numbers  was  particularly  noticeable  for  Ireland  (36%)  and  Poland  (35%),  while  two 
Member  States,  Sweden  (22%)  and  Finland  (140%),  experienced  year-on-year  growth  in  the 
number of foreign greenfield projects received. 

4.  Sector-specific information 

Almost  all  of  the  top  five  sectoral  categories4  experienced  year-on-year  increases  in  foreign 
M&A deals in 2024 compared to 2023, with the exception of deals in professional, scientific and 
technical  (PST)  activities  (Figure  4,  left  chart).  Conversely,  the  number  of  foreign  greenfield 
deals only increased for one of the top five sector categories (accommodation) in 2024 (Figure 4, 
right chart). 

Figure 4: Number of equity stakes (left) and greenfield investments (right) in 2023 and 2024 by 
NACE Rev. 2 sectors (top five categories) 

Source: JRC elaboration based on Bureau van Dijk data, extracted on 26 March 2025 from Orbis M&A and Orbis Crossborder Investment. PST 
stands for ‘professional, scientific and technical’ activities (NACE Rev. 2, section M) and includes R&D facilities. ICT stands for ‘information 
and communication’ (NACE Rev. 2, section J). Manufacturing corresponds to NACE Rev. 2 section C. Finance corresponds to NACE Rev. 2 
section K (‘Financial and insurance activities’). Retail corresponds to NACE Rev. 2 section G (‘Wholesale and retail trade’). Accommodation 
corresponds to NACE Rev. 2 Section I (‘Accommodation and food service activities’). 

In  2024,  manufacturing  remained  the  main  sector  for  dealmaking,  with  27%  of  foreign  M&A 
(526 transactions). Information and communication (ICT) kept its second place with 24% (467 
transactions). Both sectors saw an increase in deal activity, with manufacturing rising by 3.3% 
and ICT by 5.4% in 2024 compared to 2023. PST activities, where deals decreased by 14% with 
respect to 2023, ranked third with 10%, followed by finance (8.1%) and retail (7.3%).  

For foreign greenfield investments, retail-related activities accounted for almost one third (31%) 
of projects in 2024 (523 transactions). PST was the second-largest sector in 2024 with a share of 
15%. In 2024, manufacturing, with a share of 13%, became the third-largest sector for greenfield 
investments, while the ICT sector, with a share of 10%, placed fourth. Greenfield investments in 

4 The categories used refer to the NACE Rev. 2 Broad Structure, see: https://ec.europa.eu/eurostat/web/nace-rev2. 

5 

 
 
 
 
 
the ICT sector and retail experienced the largest year-on-year decline – the number of projects in 
2024 fell by 27% and 21%, respectively. Accommodation was the only sector in the top five that 
experienced an increase in the number of projects (1.2%) in the same period. 

5.  Conclusions 

The EU27 has seen a steady increase in FDI stocks between 2015 and 2024, receiving an annual 
average of 5 250 FDIs. However, recent years have seen a slowdown of FDI inflows, with annual 
declines in 2023 (23%) and 2024 (8.4%). The decrease in 2024 inflows was driven by a decline 
in foreign greenfield investments (19%) as M&As experienced a year-on-year recovery (2.7%). 

In 2024, the US and the UK emerged as the top foreign investors. The US led the way with 30% 
of total M&As and 37% of greenfields, closely followed by the UK with 23% of M&As and 24% 
of greenfields. As for Member States receiving FDI, Germany was the preferred destination for 
M&As (21%), while Spain received the most greenfield investments (24%). Lastly, in terms of 
sectoral distribution, manufacturing (27%) was the top sector for M&A dealmaking, while retail 
(31%) led greenfield investment activities.  

The  annual  decline  in  greenfield  projects  in  2024  affected  almost  all  jurisdictions  of  origin, 
destination  Member  States  and  sectors.  The  overall  moderate  annual  improvement  in  M&A 
investments observed in 2024 appears to be more unevenly spread across jurisdictions of origin, 
destinations and sectors. 

6 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 2 – LEGISLATIVE DEVELOPMENTS IN MEMBER STATES IN 2024 

1.  The EU FDI Screening Regulation and EU Member States’ FDI screening mechanisms 

Throughout 2024, the European Commission continued to encourage all Member States to adopt 
and  implement  national  FDI  screening  mechanisms  to  ensure  that  the  Commission  and  all 
Member  States  have  the  appropriate  tools  to  identify  and  address  risks  to  security  and  public 
order related to FDI. 

The  Commission  also  encouraged  the  alignment  of  national  FDI  screening  mechanisms  and 
screening practices.  It helped Member States with technical and policy guidance, meetings and 
information  exchanges,  particularly  on  best  practices.  However,  there  are  still  noticeable 
differences between national screening mechanisms, especially: (i) for what constitutes a formal 
screening  of an FDI (which triggers  the notification of an FDI to  the cooperation mechanism); 
(ii)  the  timelines  of  the  national  screening  procedure;  (iii)  the  sectoral  coverage  of  national 
screening  mechanisms;  and  (iv)  notification  requirements  by  the  transaction  parties  to  the 
national  authorities.  Addressing  these  differences  was  one  of  the  reasons  behind  the 
Commission’s  legislative  proposal  in  January  2024  for  the  revision  of  the  cooperation 
mechanism, which is currently being finalised by the Council and the European Parliament. 

2.  Overview of Member States’ FDI screening mechanisms and legislative developments 

Russia’s  war  of  aggression  against  Ukraine  and  uncertainties  over  geopolitical  developments 
have  brought  the  need  to  secure  critical  (advanced)  technologies  and  infrastructure  even  more 
into  focus.  Consequently,  some  Member  States  without  screening  mechanisms  initiated  further 
steps to adopt national screening mechanisms or update and expand existing ones in response to 
changing circumstances.  

In  2024,  three  Member  States  engaged  in  activities  with  the  aim  of  adopting  a  screening 
mechanism, two Member States saw their recently adopted FDI screening mechanisms became 
operational,  and  10  Member  States  introduced  amendments  to  their  existing  screening 
legislation.  

By the end of 2024, 24 EU Member States had FDI screening legislation in place.  

7 

 
 
 
 
 
The map below gives an overview of the legislative situation in EU Member States in 2024. 

8 

 
 
 
 
The table below gives an overview of the legislative situation and developments in all Member 
States as of 31 December 20245. 

National  FDI  screening  mechanism  in  place  (no 
legislative changes) 

Austria, Belgium, Estonia, Finland, 
Germany, Italy, Latvia, Luxembourg, 
Malta, Portugal, Slovenia, Spain 

Amended an existing mechanism 

Czechia, Denmark, France, Hungary, 
Lithuania, Netherlands, Poland, 
Romania, Sweden, Slovakia 

Entry into force of a new national FDI screening 
mechanism 

Bulgaria, Ireland 

Ongoing  consultative  or 
legislative  process 
expected  to  result  in  the  adoption  of  a  new 
mechanism 

Croatia, Cyprus, Greece 

Entry into force of new FDI screening mechanisms 

In Bulgaria, the national screening mechanism proposed in Parliament in 2023 was adopted on 
22 February  2024,  promulgated  on  8 March  2024  and  will  become  operational  at  some  point 
when  the  necessary  implementing  regulations  have  been  adopted6.  In  Ireland,  the  Screening  of 
Third  Country  Transactions  Act,  enacted  in  October  2023,  became  operational  on  6 January 
2025.  

Ongoing  consultative  or  legislative  processes  expected  to  result  in  the  adoption  of  a 
new mechanism 

As  of  31 December  2024,  Cyprus  had  not  established  a  national  FDI  screening  mechanism. A 
draft  law  was  submitted  to  the  House  of  Representatives  in  March  2024.  Following  several 
amendments, the draft law was resubmitted to the Law Office of the Republic of Cyprus for legal 
vetting  in  early  2025.  The  text  will  at  some  point  be  presented  again  to  the  House  of 
Representatives for adoption.  

In  Croatia,  a  working  party  was  formed  in  October  2023  to  draft  a  legislative  proposal  to 
establish an FDI screening mechanism. As of 31 December 2024, the drafting process was still 
ongoing.  

5   For more details, please see the accompanying Commission staff working document. 
6   As of 16 June 2025, the relevant implementing regulations for the Bulgarian screening mechanism have not yet 

been adopted. 

9 

 
 
 
In Greece, the Ministry of Foreign Affairs completed drafting legislation for the establishment of 
a national screening mechanism. 

Updates to existing FDI screening mechanisms 

In  Czechia,  preparatory  work  to  amend  both  the  general  FDI  screening  mechanism  (Act 
No 34/2021) and the sectoral screening mechanism under the Energy Act (Act No 458/2000) was 
launched.  Amendments  to  the  general  FDI  screening  mechanism  aim  to  link  investment 
screening and foreign subsidies investigation and introducing new rules for communication with 
certain foreign investors. 

Denmark  amended  its  FDI  screening  mechanism  through  Law  nr.  674  of  11 June  2024,  which 
introduced the possibility of earlier screening of special financial agreements relating to offshore 
wind  tenders  or  other  major  public  energy  projects.  This  new  provision  entered  into  force  on 
1 July 2024.  

In  France, the revised list  of R&D activities in critical  technologies covered by the investment 
screening mechanism entered into force in 2024, following the adoption of an administrative act 
on 28 December 2023. The revised list  now includes photonics  and a new description of clean 
energy. 

In Hungary, two sets of amendments to the FDI screening legislation allowed to transpose into 
national law certain provisions of Directive (EU) 2022/2555 on cybersecurity and Directive (EU) 
2022/2557 on the resilience of critical entities. 

Lithuania  updated  two  lists  relevant  for  FDI  screening  activities:  (i)  the  list  of  equipment  and 
assets  important  for  national  security  in  July  and  October  2024;  and  (ii)  the  list  of  economic 
activities  considered  strategically  important  for  national  security  on  13 November  2024.  The 
scope of subsectors was expanded to cryptocurrencies and asset-referenced tokens.  

The  Netherlands  adopted  an  Implementation  Regulation  on  offshore  wind  on  1 January  2024. 
The  Regulation  allows  for  screening  participants  in  tenders  for  offshore  wind  farms  and  the 
transfer of control before a wind farm becomes operational. 

In Poland, the Regulation of the Council of Ministers of 18 December 2024 amended the list of 
protected entities (companies either holding assets in critical infrastructure or active in strategic 
sectors) and the corresponding authorities overseeing them. 

In  Romania,  the  adoption  of  Emergency  Ordinance  No 152/2024  clarified  the  notion  of 
‘European Union investor’  and introduced new  provisions on legal  deadlines. Additionally, the 
Secretariat of the FDI Commission was placed under the direct subordination of the President of 
the FDI Commission, instead of the President of the Competition Authority. 

Sweden expanded the list of ‘essential services’ covered by the FDI Screening Act (2023:560) to 
new  activities  on  1 October  2024.  The  most  significant  amendment  is  that  a  number  of 

10 

 
 
protection-worthy  activities  have  been  added  concerning  vital  societal  functions  in  the  field  of 
information and communication. 

In Slovakia, the adoption of Act No 367/2024 on critical infrastructure and on amendments and 
additions  to  certain  acts  led  to  a  limited  amendment  concerning  access  to  information  on  FDI 
screening activities. 

Further  details  on  legislative  developments  related  to  Member  States’  national  screening 
mechanisms can be found in the accompanying Commission staff working document. An up-to-
date list of national screening mechanisms is available on the European Commission’s website7. 

7 The list of screening mechanisms notified by Member States (dated 8 January 2025): 
   https://circabc.europa.eu/rest/download/7e72cdb4-65d4-4eb1-910b-bed119c45d47. 

11 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 3 - MEMBER STATES’ FDI SCREENING ACTIVITIES 

The FDI Screening Regulation establishes a framework for EU Member States to review FDIs in 
their territory on grounds of security and public order and to take measures to address specific 
risks. The decision on whether to screen a particular  FDI remains the sole responsibility of the 
Member State where the investment takes place. The Regulation has also created a cooperation 
mechanism  between  the  Commission  and  the  screening  authorities  of  Member  States  for 
assessing the risks of individual FDI transactions. This mechanism makes it possible to exchange 
information and enables both the Commission and other Member States to flag possible security 
or public order risks associated with an FDI to other Member States or to EU-level programmes 
or  projects.  This  allows  for  assessing  and  mitigating  these  risks.  While  the  cooperation 
mechanism  assists  the  Member  State  where  the  investment  takes  place  in  assessing  and 
mitigating security or public order risks, that Member State decides which investments to screen, 
approve, condition, or block.  

This chapter provides aggregated information on national screening activities carried out in 2024 
based on Member States’ annual reports to the Commission under Article 5 of the Regulation. All 
in  all,  Member  States  with  national  screening  mechanisms  in  place  handled  a  total  of  3 136 
requests for authorisation and cases that were initiated by the authorities themselves (ex officio 
cases)8,  up  from  1  808  in  2023  and  1  444  in  2022.  41%  of  these  were  formally  screened,  and 
about 59% were deemed ineligible or did not require formal screening (Figure 5)9. 

Figure 5 – Member States’ FDI screening activities 

Cases 
formally 
screened
41%

Did not 
require 
formal 
screening
59%

 Source: Member States’ reporting. 

8   Member States have different screening procedures that vary in scope, process steps, ex ante or ex post eligibility 
checks,  timelines  for  screening  etc.,  which  are  all  reflected  in  the  case  reporting.  For  instance,  some  Member 
States  declare  investments  ineligible  before  a  formal  screening  procedure  is  carried  out,  while  others  first 
formally screen investments and then declare them ineligible. Therefore, the graphs and numbers reported in this 
chapter aim to depict the average behaviour of Member States’ screening activities for the reporting year and it is 
based on the data reported by Member States. 

9   Note that the reported data is strongly influenced by Sweden reporting a very high number of cases in its first full 
year of operation of its FDI screening mechanism, surpassing by far the annual number of cases reported by any 
other Member State. If Sweden were excluded from the calculation, the share of cases formally screened would 
be 67% and the share of cases that did not require formal screening would be 33%. 

12 

 
 
 
 
Out  of  the  FDIs  formally  screened  in  2024  and  for  which  Member  States  have  reported  a 
decision, the overwhelming  majority (86%) was authorised without conditions  (Figure 6). This 
means  that  the  investment  was  approved  without  requiring  any  additional  action  from  the 
investor. Compared to the previous year, Member States authorised a slightly higher percentage 
of formally screened FDIs without conditions (this figure was 85% in 2023). 

In parallel, 9% of decisions involved an approval with conditions or mitigating measures, which 
is  slightly lower  than the 10% in  2023. In these cases, national  FDI screening  authorities have 
required  certain  actions,  assurances  and  commitments  from  the  investors  before  approving  an 
FDI.  

National authorities ultimately blocked investments in about 1% of all cases with a decision (the 
same  as  in  previous  years).  Lastly,  4%  of  the  filings  were  withdrawn  by  the  parties  before  a 
formal decision was taken. 

Figure 6 – Notified decisions on FDI cases 

Prohibited
1%

Withdrawn
4%

Authorised with 
conditions or 
mitigating 
measures 
9%

Authorised 
without 
conditions
86%

Source: Member States’ reporting to the Commission. 

Conclusions on Member States’ screening activities 

▪  The  proportion  of  formally  screened  FDIs  stood  at  41%  of  all  authorisation  requests 
submitted  by  investors/transaction  parties  to  the  national  FDI  screening  authorities  or 
examined by the national authorities on their own initiative. This development is strongly 
influenced by Sweden, which reported a very high number of FDI cases for the reporting 
year.  

▪  Most  screened  FDIs  were  authorised  without  any  conditions  (86%),  which  is  slightly 
higher than in 2023 (85%). This shows that FDI screening in EU Member States has not 

13 

 
 
 
resulted  in  a  more  restrictive  investment  climate  but  provides  for  greater  awareness 
among Member States and the Commission of FDI potentially raising security or public 
order risks. 

▪  As regards authorisations with conditions, the share of cases where mitigating measures 

were imposed (9%) is slightly lower than in 2023 (10%).  

▪  The share of FDIs blocked by Member States remained at about 1%, which corresponds 

to the average in recent years.  

▪  Overall,  these  numbers  show  a  stable  trend,  which  confirms  that  the  EU  has  remained 
open to foreign investment and that Member States only block those FDIs that pose very 
serious threats to security or public order.  

14 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 4 – EU COOPERATION MECHANISM ON FDI SCREENING 

1.  Notifications under the FDI Screening Regulation 

1.1 Overview of activity in 2024 

In  2024,  21  Member  States  submitted  a  total  of  477  notifications  under  Article 6  of  the  FDI 
Screening Regulation compared to 488 notifications submitted by 18 Member States in 202310. 
Four Member States (Spain, Austria, Italy, France) were responsible for 76% of the notifications 
and  seven  Member  States  (Spain,  Austria,  Italy,  France,  Germany,  the  Netherlands  and 
Lithuania)  were  responsible  for  84%  of  those  notifications11.  The  notified  transactions  varied 
greatly, including in terms of sectoral scope, value of the transaction and origin of the ultimate 
investors, among other parameters. 

Source: Member States’ reporting. 

10 See https://ec.europa.eu/transparency/documents-register/detail?ref=COM(2024)464&lang=en. 
11 In 2023, this share stood at 69% and 85% respectively. 

15 

 
 
 
   
 
 
 
 
The map above indicates the number of FDIs notified by Member States to other Member States 
and the Commission in the framework of the EU cooperation mechanism on FDI  screening.  In 
2024,  out  of  the  21  Member  States  with  a  national  screening  mechanism  in  place,  7  Member 
States submitted more than 10 notifications, 6 submitted 6-10 notifications and 8 submitted less 
than 5 notifications. 

Compared  with  the  previous  year,  in  2024,  there  was  a  2%  fall  in  the  number  of  notifications 
from  488  to  477. Apart  from  this  small  decrease,  there  has  been  a  continuous  increase  in  the 
number of notifications in recent years. There were 414 notifications in 2021, 421 in 2022 and 
488 in 2023,  and the number of Member States  notifying FDIs grew from 13 in 2021 to 21 in 
2024.  

1.2 Main sectors12 of FDI notified to the cooperation mechanism 

The five sectors with the highest number of transactions in 2023 were manufacturing13 (25% of 
all  transactions),  ICT14  (22%),  wholesale  and  retail15  (14%),  financial  activities16  (10%)  and 
professional  activities17  (9%).  This  is  very  similar  to  last  year  when  the  same  five  sectors 
occupied  the  top  places  in  the  same  order.  Notifications  relating  to  manufacturing  activities 
gained  even  more  importance  compared  to  2023  when  their  share  stood  at  23%.  Lastly, 
notifications  relating  to  the energy  and transports sector accounted  for 6% and 5% of the total 
amount of notifications in 2024, respectively, and other sectors18 accounted for 9%. 

12 According to the mainstream approach, the primary sector of activity was selected as the leading indicator. This is 
also aligned with the information contained in all sectoral charts in the staff working document accompanying this 
annual report.  

13 Manufacturing encompasses activities by companies that are involved in the transformation of materials into new 
products  (for  example, manufacturing  of  electrical  equipment  and  motors,  industrial  machinery  and  equipment, 
weapons and ammunitions, and pharmaceuticals). 

14  ICT  stands for  information  and  communication  technologies.  It  encompasses  activities by  companies  providing 
essential  infrastructures  and  tools  for  knowledge  creation,  sharing  and  diffusion  (for  example,  computer 
programming, software publishing, data processing and hosting, wireless telecommunication activities). 

15 Wholesale and retail includes wholesale and retail activities relating to pharmaceutical goods, chemical products, 
electronic and telecom equipment and supplies, computers, computer peripheral equipment and software, metals 
and metal ores. 

16  Financial  activities  encompass  activities  by  holdings,  funds  or  similar  actors  in  the  financial  sector  that  aim  to 
acquire  a  specific  (equity)  stake  or  control  in  a  target  company  (for  example,  fund  management  activities, 
activities of holding companies, financial services and insurance activities). 

17  Professional  activities  include  activities  by  law  and  accounting  firms,  as  well  as  consultancy  and  engineering 
activities  (for  example,  activities  of  head  offices,  market  research  and  public  opinion  polling,  consultancy,  and 
research and experimental development on biotechnology). 

18  The  ‘other’  category  encompasses  all  other  sectors  below  5%,  in  particular,  construction,  health  and 

administrative activities. 

16 

 
 
 
Figure 7 – Sectoral breakdown of all notifications in 2024 

Others
9%

Transport
5%

Energy
6%

Professional 
activities
9%

Financial 
activities
10%

Wholesale and retail
14%

Source: Member States’ notifications.  

Manufacturing
25%

ICT
22%

1.3 Total value of FDI notified to the cooperation mechanism  
Looking at the value of transactions, 58% of notified FDIs had a value19 of less than EUR  500 
million, up by 5 percentage points (pps) from 53% in 2023. 30% of the transactions involved a 
value of EUR 500 million and more (29% in 2023).  

Figure 8 – Respective value per notified FDI transaction in 202420 

Not available/Not disclosed
12%

<  EUR 10 million
17%

EUR 100 - 500 million 
19%

>  EUR 500 million 
30%

EUR 10 - 100 million 
22%

Source: Member States’ notifications. 

19  The value, where available, relates to the total value of the transaction of which the notified transaction was part. 
20 ‘Not available/not disclosed’ includes blanks, not available/not disclosed and not applicable (for example, because 

a transaction involved a restructuring or no investment was provided). 

17 

 
 
 
 
 
1.4 Procedures for and speed of closing FDI cases 

In  line  with  the  FDI  Screening  Regulation,  FDI  transactions  notified  by  Member  States  are 
assessed  by  the  Commission  in  two  phases.  All  notified  transactions  undergo  a  preliminary 
assessment (‘Phase 1’), with only a limited number proceeding to Phase 2.  

Phase 2 involves a more detailed assessment of cases that could affect security or public order in 
more than one Member State or create risks to projects or programmes of EU interest. Cases in 
Phase  2  can  be  concluded  with  an  opinion  of  the  Commission  as  provided  for  in  the  FDI 
Screening Regulation. However, such opinions remain confidential pursuant to Article 10 of the 
Regulation.  The  opinion  may:  (i)  communicate  that  the  Commission  considers  that  the  FDI  is 
likely to negatively affect security or public order in more than one Member State or a project or 
programme  of  Union  interest,  (ii)  recommend  appropriate  measures  for  consideration,  or  (iii) 
share relevant information about the FDI undergoing screening to inform the notifying Member 
State’s assessment and final decision. 

In 2024, the Commission closed 92% of the 477 cases in Phase 1, i.e. within 15 calendar days 
following  the  notification  by  the  screening  Member  States  (the  same  share  as  in  2023).  The 
remaining 8% of transactions proceeded to Phase 2 with additional information being requested 
from the notifying Member State21. In 2024, five Member States accounted for over 66% of the 
Phase 2 cases, which represents an increase compared to 2023, when the top five Member States 
notifying cases leading to Phase 2 for the Commission accounted for 60% of the Phase 2 cases. 
As in 2023, the Commission issued an opinion in less than 2% of the notified transactions.  

Figure 9 – Cases closed in Phases 1 and 2  

8%

92%

Phase I cases Phase II cases

Source: Member States’ notifications. 

When  opening  Phase  2,  the  Commission  requests  additional  information  from  the  notifying 
Member  State,  which  varies  depending  on  the  transaction  and  details  of  the  information 

21  In  such  cases,  the  deadline  to  provide  comments  or  issue  an  opinion  is  20  calendar  days  after  receiving  the 

requested information from the notifying Member State. 

18 

 
 
 
 
submitted with the notification22. This information often includes questions about the investor’s 
intentions  and  business  plan  regarding  the  target  or  the  target’s  customers  in  sensitive  sectors. 
This information is requested to better assess how critical the target company is and assess the 
potential threats posed by the foreign investor. 

In 2024, Member States participated in the cooperation mechanism inter alia by asking questions 
in  about  10%  of  the  cases  and  by  issuing  comments  on  FDI  transactions  occurring  in  another 
Member  State.  The  share  of  cases  upon  which  Member  States  issued  comments  amounted  to 
about 3%, well below the 2023 share of 6%23. The number of Member States issuing comments 
to other Member States remained unchanged at about one third24.  

1.5 Main sectors of FDI subject to the Commission’s detailed security or public order risk 

assessment   

The  main  sector  for  Phase  2  cases  was  manufacturing,  which  accounted  for  50%  of  all 
transactions and was well above the share of 39% in 2023 (Figure 10). The second-largest sector 
was  ICT,  accounting  for  almost  a  fifth  of  all  Phase  2  cases  (24%  in  2023).  Phase  2  cases  on 
financial activities ranked third with a share of 8%, unchanged compared to last year. 

Figure 10 – Phase 2 main targeted sectors in 2024 cases 

Real estate
3%

Construction
5%

Wholesale and 
retail 5%

Professional 
activities 5%

Energy
5%

Financial activities
8%

ICT
19%

Source: Member States’ notifications. 

Manufacturing
50%

22 The notification form: request for information from an investor for the purposes of notifications under Article 6 of 
the  Regulation  serve  to  ensure  some  degree  of  uniformity  and  a  minimum  level  of  information  about  the 
transaction, the investor and the target company provided in the notification under the Regulation. The form is 
available at https://policy.trade.ec.europa.eu/enforcement-and-protection/investment-screening_en. 

23 Several countries can issue a comment on the same transaction.  
24 In the majority of cases where Member States had asked questions, the reply they received alleviated the potential 

concerns, so no comments were issued.  

19 

 
 
 
 
Given  the  importance  of  the  manufacturing  sector,  Figure  11  provides  an  overview  of  the 
factors25 that were used to assess the criticality of manufacturing sector transactions for security 
or public order. The factor used most often is when the transaction involved a foreign investment 
in  critical  technologies,  which  accounted  for  49%  of  the  total  in  2024  (51%  in  2023).  The 
second-largest factor accounting for a share of 26% (34% in 2023) was related to FDIs in critical 
infrastructure, followed by the supply of critical inputs with 20% (13% in 2023). Finally, access 
to sensitive information (including personal data) accounted for 5% of the total, up 3  pps from 
2% in 2023. 

Figure 11 – Factors leading to Phase 2 cases in manufacturing 

Access to sensitive information
5%

Supply of critical 
inputs
20%

Critical 
infrastructure
26%

Critical technologies
49%

Source: Member States’ notifications 

A  closer  look  at  notifications  related  to  critical  technologies  subject  to  Phase  2  (Figure  12) 
reveals that defence-related activities accounted for 37% of these cases, up 11 pps from 26% in 
2023,  followed  by  semiconductors  with  21%  and  aerospace  with  16%.  Compared  to  2023,  the 
rankings  of  these  last  two  technologies  have  flipped,  when  semiconductors  accounted  for  17% 
and  aerospace  for  22%.  The  other  critical  technologies,  including  artificial  intelligence  and 
robotics, accounted for 26% of the total.  

25 These factors are set out in Article 4 of the FDI Screening Regulation.  For one transaction, there can be several 

factors used to assess the criticality of a given FDI for security and public order. 

20 

 
 
 
 
Figure 12 – Types of critical technologies in Phase 2 cases 

Other critical technologies
26%

Defence
37%

Aerospace
16%

Source: Member States’ notifications 

Semiconductors
21%

1.6 Origin of ultimate investors in FDIs notified to the cooperation mechanism 

Of  the  477  cases  notified  in  2024,  the  six  main  jurisdictions  of  origin  were  the  US,  the  UK, 
China (including Hong Kong), Japan, Canada and the United Arab Emirates. Compared to 2023, 
the  share  of  FDI  from  US  investors  notified  to  the  cooperation  mechanism  significantly 
increased  by  7 pps,  from  33%  in  2023  to  40%  of  all  transactions  in  2024.  The  share  of  UK 
investors  on  the  other  hand  declined  marginally  from  12%  in  2023  to  11%  in  2024. Another 
major development was the rise of transactions from China, whose share increased by 50% from 
6% in 2023 to 9% in 2024. FDIs from Japan ranked fourth in 2024 in terms of total number of 
transactions with  a share of 4% (unchanged  from 2023). Lastly, FDI from investors  in Canada 
and  the  United  Arab  Emirates  each  had  a  share  of  3%  (down  from  5%  and  6%  in  2023, 
respectively).  

30%26  of  notified  cases  originated  from  jurisdictions  other  than  the  top  six,  compared  to  2023 
where this share was 33%. This marks a slight increase in the concentration of investments from 
the top  countries  of origin. In 2023, the top six  investors accounted  for 66% of  cases notified, 
against 70% in 2024.  

26 Countries/jurisdictions with a non-negligible share include Jersey, India, Singapore and Switzerland with a share 
of  2%  each.  FDI  from  Russia  accounted  for  a  share  of  1%  of  total  investments  notified  to  the  cooperation 
mechanism in 2024. 

21 

 
 
 
 
Figure 13 – Countries of origin of ultimate investors in 2024 cases 

40%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

30%

11%

9%

4%

3%

3%

USA

GBR

CHN/HKG

JPN

CAN

ARE

Others

Source: Member States’ notifications. 

1.7 Multi-jurisdiction notifications to the cooperation mechanism and their main sector 

Of  all  cases  notified  in  2024,  19%  of  the  notifications  concerned  transactions  undergoing 
screening in two or more Member States (compared to 29% in the first annual report, 28% in the 
second, 20% in the third and 36% in the fourth)27. The main sectors subject to these notifications 
were: (i) manufacturing with a share of 26% (23% in 2023); (ii) ICT with a share of 20% (21% 
in 2023); (iii) wholesale and retail with a share of 14% (19% in 2023); (iv) professional activities 
with a share of 7% (13% in 2023); and (v) energy with a share of 6% (5% in 2023) (Table 1). 
Construction  and  health  accounted  for  6%  of  multi-jurisdiction  transactions.  Finally,  other 
sectors, including transport and water, accounted for 7% of the total number of multi-jurisdiction 
cases.  

Table 1 – Main sectors of multi-jurisdiction FDIs  

Manufacturing 

ICT 

Wholesale and retail 

Financial activities 

Professional activities 

Construction 

Energy 

Health 

Other 

Source: Member States’ notifications 

26% 

20% 

14% 

10% 

7% 

6% 

6% 

6% 

7% 

27  ‘Multi-jurisdiction  FDI  transactions’  refers  in  this  context  to  FDI  transactions  where  the  target  company  is  a 
corporate group with a presence in more than one Member State (and possibly also third countries), for example, 
by way of subsidiaries in more than one Member State. Such deals may be notified by more than one Member 
State if the transaction falls under the scope of their screening mechanism and they initiate its formal screening. 

22 

 
 
 
 
 
1.8 Non-notified cases 

The  FDI  Screening  Regulation  allows  Member  States  and  the  Commission  to  exchange 
information on FDIs not notified to the EU cooperation mechanism and in case security or public 
order  risks  are  identified  by  the  other  Member  States  or  the  Commission,  comments  or  an 
opinion  may  be  provided.  In  2024,  the  Commission  made  limited  use  of  this  procedure  to 
enquire about transactions not undergoing screening.  

Conclusions on the EU cooperation mechanism on FDI screening 

▪  First  and foremost, FDI  screening  continued to be an indispensable tool contributing  to 
the  collective  security  of  the  EU  against  investments  from  third  countries  potentially 
raising security or public order risks.  

▪  Second, the EU cooperation mechanism on FDI screening remains highly relevant. This 
is reflected in the number of notifications, which remained at about the same level as in 
2023  (477  notifications  in  2024  against  488  in  2023).  At  the  same  time,  84%  of  all 
notifications  originated  from  seven  Member  States:  Spain,  Austria,  Italy,  France, 
Germany,  the  Netherlands  and  Lithuania.  Even  though  24  Member  States  now  have 
operational screening mechanisms, transactions were notified by 21 of them (up from 13 
in 2021). The upward trend reflects growing familiarity with the cooperation mechanism. 
In addition, Member States had an opportunity to have discussions at a technical level at 
Expert Group Meetings on FDI screening and at the annual ‘Screeners’ Academy’, hosted 
in 2024 by the Romanian FDI screening authority.  

▪  Third,  against  the  backdrop  of  the  Union’s  strong  commitment  to  an  open  investment 
environment,  the  EU  cooperation  mechanism  continues  to  operate  as  a  limited  and 
targeted tool for exceptional cases where an FDI is likely to affect negatively security or 
public  order  in  the  Union.  Of  the  477  cases  notified  in  2024,  the  vast  majority  (92%) 
were  closed  in  Phase  1  (i.e.  within  15  calendar  days  following  the  notification  by  the 
screening Member States), with only 8% undergoing a detailed security risk assessment 
by the Commission. Compared to 2023, this proportion remained unchanged. In 2024, as 
in 2023, the Commission issued opinions in less than 2% of the cases. 

▪  Fourth, the leading role of manufacturing for Phase 2 cases has even increased from 39% 
in  2023  to  50%  in  2024. A  closer  look  at  the  factors  behind  the  need  for  the  in-depth 
Phase  2  security  risk  assessments  reveals  that  the  relevance  of  the  target  for  ‘critical 
technologies’  was  the  factor  triggering  further  assessment  in  49%  of  the  cases  (51%  in 
2023).  The  notifications  related  to  critical  technologies  subject  to  Phase  2  show  that 
defence-related activities have gained more importance, accounting for 37% of the total 
against  26%  in  2023.  Furthermore,  compared  to  2023,  semiconductors  overtook  the 
aerospace sector and ranked second with 21%, followed by aerospace with 16%. 

23 

 
 
▪  Lastly, most investors continued to come from the same top two jurisdictions  of origin: 
the US and the UK accounted for 51% of all investment notified to the EU cooperation 
mechanism. However, the share of US investors grew considerably from 33% in 2023 to 
40% in 2024. By contrast, the share of UK investors declined slightly from 12% in 2023 
to 11% in 2024. Another noteworthy development concerns Chinese (together with Hong 
Kong)  investors  whose  share  increased  by  50%  from  6%  in  2023  to  9%  in  2024. 
Meanwhile, investors from Canada and the United Arab Emirates accounted for a smaller 
share of total transactions, with 3% each, down from 5% and 6% in 2023, respectively.  

2.  Recent  progress  in  FDI  screening  and  looking  ahead:  a  proposed  revision  of  the  FDI 

Screening Regulation 

As  part  of  the  European  Economic  Security  Strategy28,  the  European  Commission  presented  a 
legislative proposal on 24 January 2024 to revise the FDI Screening Regulation29. The proposal 
builds  on  the  experience  gained  with  over  1 200  FDI  cases,  an  OECD  study,  an  in-depth 
evaluation by the Commission, and a special report by the European Court of Auditors. 

The proposal seeks to tackle the current framework’s main shortcomings, including the absence 
of  screening  mechanisms  in  all  Member  States,  regulatory  fragmentation  and  the  lack  of  a 
standardised approach to the transactions that all Member States must screen. It aims to: 

▪  ensure that all Member States put in place screening mechanisms; 

▪ 

introduce  a  common  minimum  scope  and  a  minimum  harmonisation  of  national 
mechanisms; 

▪  bring  EU-based  investors  ultimately  controlled  by  non-EU  entities  within  the  screening 

scope; 

▪  strengthen  cooperation  and  improve  accountability  between  Member  States  and  the 

Commission. 

3.  Outbound  Investment  Review  –  adoption  of  Commission  Recommendation  (EU) 

2025/63 

On  15 January  2025,  the  Commission  adopted  a  recommendation  on  reviewing  EU  outbound 
investments.  The  initiative  aims  to  strengthen  the  EU’s  economic  security,  guide  future  policy 
choices and build on the EU’s open investment environment.  

The  Recommendation  applies  to  three  technology  areas  of  strategic  importance  which  are 
considered  to  present  a  high  level  of  potential  risk  (semiconductors,  artificial  intelligence  and 
quantum  technologies)  and  calls  on  Member  States  to  assess  risks  to  economic  security 

28 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:52023JC0020. 
29 https://circabc.europa.eu/ui/group/aac710a0-4eb3-493e-a12a-e988b442a72a/library/f5091d46-475f-45d0-9813-

7d2a7537bc1f/details?download=true. 

24 

 
 
 
potentially arising from EU outbound investment transactions. More specifically Member States 
should: 

▪  Review  past  and  ongoing  outbound  investments  of  companies  established  in  their 

respective territories in the three technology areas. 

▪  Collect  information  and  assess,  together  with  the  Commission,  any  potential  risks  and 
security concerns about outbound investments, and consider appropriate policy responses 
at the end of the proposed 15-month review period. These risks could result from leakage 
of technology or know-how as part of an outbound investment, allowing the technology 
to be used for military or intelligence purposes against the EU or its Member States or to 
undermine international peace and security. 

▪  Consult  and  work  with  relevant  stakeholders,  including  business,  academia  and  civil 
society,  to  get  a  complete  picture  of  the  investment  environment  and  potential  security 
risks. 

The Recommendation is based on discussions with Member States in the Commission’s Expert 
Group  on  Outbound  Investment,  set  up  in  July  2023,  and  the  public  consultation  carried  out 
following the White Paper on Outbound Investment published in January 2024. 

Follow-up and next steps 

Member States  had to  designate a Single Contact  Point by 15 of March 2025. At the time this 
report  was  prepared,  25  Member  States  had  notified  the  Commission  of  the  authorities  for 
Outbound Investment Review.  

Member  States  are  also  asked  to  provide:  (i)  a  progress  report  by  15 July  2025,  and  (ii)  a 
comprehensive  report  on  implementation  of  this  Recommendation  and  any  risks  identified  by 
30 June 2026. 

25