CELIS-Blog

Authors: Helene Schramm with the assistance of intern Pavel Kvashnin   INVESTMENT SCREENING MECHANISMS     European Union – Revised FDI Screening Regulation Reaches the Finish Line  On 19 May 2026, the European Parliament approved the provisional agreement on the revised Foreign Direct Investment (“FDI”) Screening Regulation. The legislative procedure was completed on 8 June 2026, when the Council…

Author: Yanqin Mao (PhD Candidate, Durham Law School, Durham University)   I. When Commercial Logic Meets Economic Security On 26 March 2026, German multinational BASF inaugurated its Zhanjiang Verbund site in China’s Guangdong province. At roughly €8.7 billion, the integrated chemical complex is the largest single investment in BASF’s more than 160-year history. From the company’s perspective, the commercial logic of…

Authors: Sally Pei (Arnold & Porter) and Joel Dahlquist (Arnold & Porter)    Introduction  States in Europe and beyond are increasingly screening incoming foreign direct investment (“FDI”). When a host State blocks or restricts an investment on security grounds, the affected investor may seek judicial review domestically, initiate investor-state dispute settlement (“ISDS”) proceedings under an applicable investment…

Author: Dean Merriman (Barrister at the Victorian Bar)    I. Imposition of Conditions on Foreign Investment: Anecdotes from Australia  It is well known that domestic investment screening authorities frequently are given the power to approve inbound foreign investments subject to the imposition of certain conditions, including on national security grounds. In Australia, the Foreign Acquisition and…

Author: Szabolcs Nagy (Trade policy and investment diplomat, Permanent Representation of Hungary to the European Union) A New Screening Framework On 8 June 2026, the Council adopted the revised EU Foreign Direct Investment (FDI) Screening Regulation. Following signature on 16 June and publication in the Official Journal shortly thereafter, it will enter into force 20…

Author: Jonas Hallberg I. Legal Standards and Evidentiary Threshold Security assessments of a prospective investment necessarily involve an assessment of future contingencies; the evidentiary threshold cannot therefore be set unduly high.  The deciding body must collect classified and secret information from its security agencies. Normally this is done in the form of opinions.   Whatever evidentiary…

Author: Dr. Bálint Kovács (University of Szeged)    Introduction  With the widespread adoption of investment screening by Western states, there is increasing evidence as to the ways in which this tool of economic security is implemented. Investment screening accommodates an important exception to open market principles: the national security imperative. The liberalisation of foreign direct investment…

Authors: Dr. Roland M. Stein (BLOMSTEIN) and Henriette Wohlschläger (BLOMSTEIN)     Introduction  In light of the prevailing tense global geopolitical climate, investments are no longer regarded exclusively as catalysts for growth and innovation, but instead as potential sources of security risk. As a key instrument for safeguarding national security as well as economic and technological sovereignty, mechanisms for screening foreign direct…

Author: Dr. Joshua Paine (University of Bristol)    Introduction  This post considers how States can design international investment agreements (“IIAs”) to prevent foreign investment screening measures from being subject to successful challenge under such treaties. It will demonstrate that there are a wide variety of strategies for insulating investment screening measures from successful challenge under an…

Authors: Bart Wasiak (Arnold & Porter Kaye Scholer (UK) LLP) and Naina Gupta (Arnold & Porter Kaye Scholer (UK) LLP)    Introduction  Decisions concerning the screening of foreign direct investments (“FDI”) are often taken at the post-establishment phase—after the foreign investor already has made an investment in the host State—but may have an effect on the validity of the investor’s earlier acquisition or…

Authors: Helene Schramm with the assistance of interns Reet Sodhi and Aditi Singh   INVESTMENT SCREENING MECHANISMS  Finland – Planned Revision of FDI Screening Regime to Address Emerging Security Risks  The foreign direct investment (“FDI”) screening framework in Finland is going through a major revamp to address the risks to national security, security of supply, and undue foreign influence, more efficiently.  The new…

Authors: Steffen Hindelang (Uppsala University; CELIS Institute), Helene Schramm (CELIS Institute) and Liam McGrath (CELIS Institute)    Introduction  As a starting point, a State enjoys broad authority to regulate the admission of foreign investment into its territory, including by reviewing, conditioning, or prohibiting a contemplated transaction before it is implemented. This can be motivated by national security considerations or…

Authors: Steffen Hindelang (Uppsala University; CELIS Institute), Helene Schramm (CELIS Institute) and Liam McGrath (CELIS Institute) Most international rules governing foreign investment still breathe the air of the liberal, if not neoliberal era in which they were created. They place particular emphasis on the promotion and protection of foreign-owned property and often enable foreign investors…

Omid Jahanbozorgi and Ardit Maxhuni (Business and Law Research Group, University of Antwerp, Belgium)   Digital Sovereignty is an increasingly discussed topic in European policy circles. CELIS Blog will host several contributions on the topic in the following months. The following post provides a general introduction to the theme.   The Business and Law Research…

Authors: Helene Schramm with the assistance of interns Reet Sodhi and Aditi Singh   INVESTMENT SCREENING MECHANISMS   Cyprus – Introduction of New FDI Screening Regime Under Law 194(I)/2025  Cyprus has introduced a new national framework for the screening of foreign direct investments (“FDI”) under Law 194(I)/2025 “On the Establishment of a Framework for the Screening of Foreign Direct Investments”,…

Authors: Floor Doppen (post-doctoral researcher, University of Antwerp), Simon Sharghi-Erdmosa (Managing Programme Associate & Acting Head of Programmes, CELIS Institute)   Introduction In Germany, public defence spending is reaching unprecedented levels, reflecting the current political momentum to expand manufacturing capacities and consolidate key capabilities within Germany and the European Union (EU). Yet public funding alone…

Authors: Leonard von Rummel (Partner, Blomstein), Jan Philipp Huth (PhD Candidate, European University Viadrina Frankfurt (Oder)) 1. Introduction After heated political debates and several publication announcements postponed or cancelled at the last minute, the Commission eventually unveiled its proposal for the Industrial Accelerator Act (IAA Proposal) on March 4, 2026. Even though the suggested introduction…