Changes from report parliamentary committee draft to plenary report

Article 9 – paragraph 3: deleted

Article 9 – paragraph 4: deleted

Article 9 – paragraph 5: 5. The Member States or the Commission shall open the own initiative procedure by sending a duly motivated request for information to the host Member State. Any request for information pursuant to this paragraph shall be duly justified, limited to the information necessary for the Member States to provide comments or for the Commission to issue an opinion, proportionate to the purpose of the request and not unduly burdensome for the host Member State. Where the request for information is submitted by a Member State, that Member State shall send the request to the Commission simultaneously.

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ChangedArticle 9 – paragraph 6: 6. The host Member State shall provide the complete information requested by the other Member States or the Commission pursuant to paragraph 5 without undue delay. Where the host Member State provides such information to a Member State, that information shall be sent to the Commission simultaneouslysimultaneously.

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ChangedArticle 9 – paragraph 7:7 – introductory part: 7. Following receipt of information referred to in paragraph 6, Member States may provide comments and the Commission may provide an opinion to the host Member State, no later than 3530 calendar days after receiving the complete information requested pursuant to paragraph 5. TheIn Commissioncases shallwhere bethe grantedprocedure anwas additionalinitiated 15by calendara daysMember toState, issuethe anCommission opinionshall inbe casesgranted wherean theadditional procedure15 wascalendar initiateddays byto aissue Memberits State.opinion. The host Member State shall give itsthe utmost consideration to such commentsa comment or opinion. / (deleted) / (deleted)

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RemovedArticle 9 – paragraph 7 a (new): 7a. Following receipt of a comment or opinion pursuant to paragraph 7 of this Article, the host Member State shall set up a meeting with the Member States who issued comments, where applicable, and the Commission to discuss how to best address the risks identified. If the host Member State disagrees with the risks identified or, if applicable, the measure proposed with the comment or opinion, the Member States and the Commission shall aim to identify alternative solutions.

AddedArticle 9 – paragraph 7 – point a: deleted

RemovedArticle 9 – paragraph 7 b (new): 7b. Following the meeting referred to in paragraph 7a, the host Member State shall inform the Commission and, where applicable, the Member State having provided the comment, whether it intends to screen the investment.

AddedArticle 9 – paragraph 7 – point b: deleted

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ChangedArticle 9 – paragraph 7 ca (new): 7c.7a. WhereFollowing the hostreceipt Memberof Statea decidescomment notor opinion pursuant to screenparagraph 7, the foreignhost investment,Member itState shall provideset aup writtena explanationmeeting towith the respective Member States that issued comments, where applicable, and the Commission onto discuss how to effectively address the reasonsrisks foridentified. itsIf disagreementthe host Member State disagrees with the Memberrisks States’identified commentsor, where applicable, the measures proposed with the comment or opinion, the Member States and the Commission opinion.shall aim to identify alternative solutions and agree on a suitable course of action to manage the risks in question.

Change 34

RemovedArticle 9 a (new): Article 9a / Investigative powers of the Commission / 1. Upon a duly justified request by a Member State or on its own initiative, and provided the host Member State has been notified and raises no objection, the Commission may request information in accordance with this Article. / 2. The Commission may require the parties involved in a foreign investment to provide any information deemed necessary to assess whether the foreign investment is likely to negatively affect security or public order. It may request information from any other entity or person likely to possess relevant information for assessing whether a foreign investment is likely to negatively affect security or public order, including suppliers, contractors, and customers. / 3. The Commission shall inform a Member State before seeking such information on its territory. / 4. A request for information pursuant to paragraph 2 shall: / (a) state its legal basis and purpose, specify the required information, and set an appropriate time limit for its provision; / (b) be duly justified and limited to the information strictly necessary for assessing the potential impact of a transaction on security or public order; / (c) include a statement that, if the information supplied is incorrect, incomplete or misleading, the periodic penalty payments provided for in paragraph 6 could be imposed; / (d) include a statement that a lack of cooperation may allow the Commission to take a decision based on the facts available. / 5. Th…

AddedArticle 9 – paragraph 7 b (new): 7b. Following the meeting referred to in paragraph 7a, the host Member State shall inform the Commission and, where applicable, the Member States having provided comments, whether it intends to screen the investment.

RemovedArticle 9 b (new): Article 9b / Power of decision of the Commission / 1. Following the suspension of a screening procedure pursuant to Article 7(9a) of this Regulation and without prejudice to Article 346(1), point (a), TFEU, the Commission shall request the host Member State to transmit all documents and information on which the intended decision is based. The host Member State shall transmit the requested information no later than 10 calendar days following the request. / 2. After examination of the information provided the Commission shall issue a decision to: / (a) confirm the intended decision of the host Member State where it concludes that the foreign investment is not likely to affect security or public order, or that the intended decision adequately mitigates the risk; or / (b) require the host Member State to modify its intended decision, where it finds that the intended decision does not adequately mitigate risks to security or public order. / Where the Commission requires the host Member State to modify its intended decision, it may require the host Member State to subject the investment to mitigating measures or additional mitigating measures or to prohibit the foreign investment. / 3. The decision shall be binding on the host Member State. / 4. The Commission shall adopt its decision no later than 15 days after the receipt of the information requested pursuant to paragraph 1. This deadline may be extended by 15 days to allow the Commission and the investor to agree on mitigating m…

AddedArticle 9 – paragraph 7 c (new): 7c. Where the host Member State decides not to screen the foreign investment, it shall provide a written explanation to the Member States concerned and the Commission on the reasons for its disagreement with the comments of those Member States or the opinion of the Commission.

RemovedArticle 10 – paragraph 1 – introductory part: 1. Member States shall ensure that information provided in the notification referred to in Article 5 and in response to the request of information referred to in 9(5) include:

AddedArticle 9 a (new): Article 9a / Investigative Powers of the Commission / 1. Upon a duly justified request by a Member State or on its own initiative when there are reasonable grounds to suspect that a foreign investment may affect the security or public order of more than one Member State, and provided the host Member State has been notified, the Commission may request information in accordance with this Article. / 2. The Commission may require the parties involved in a foreign investment to provide any information deemed necessary to assess whether the foreign investment is likely to negatively affect security or public order. It may request information from any other entity or person likely to possess relevant information for assessing whether a foreign investment is likely to negatively affect security or public order, including suppliers, contractors, customers and experts. / 3. The Commission shall inform a Member State before seeking such information on its territory. / 4. A request for information pursuant to paragraph 2 shall: / (a) state its legal basis and purpose, specify the required information, and set an appropriate time-limit for its provision; / (b) be duly justified and limited to the information strictly necessary for assessing the potential impact of a transaction on security or public order; / (c) include a statement that, if the information supplied is incorrect, incomplete or misleading, the periodic penalty payments provided for in paragraph 6 could be imposed; / (d) inc…

AddedArticle 10 – paragraph 1 – introductory part: 1. Member States shall provide, at a minimum, the following information in the notification referred to in Article 5 and in response to the request of information referred to in 9(5):

Article 10 – paragraph 1 – point e: (e) activities of the foreign investor, its name and address;

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ChangedArticle 10 – paragraph 1 – point e a (new): (ea) where applicable, the reasons justifying the notification;notification, andincluding whether any of the conditions for the notification of a foreign investment referred to in points (i) to (iii) of Article 5(1), point (b), are fulfilled;

Change 36

AddedArticle 10 – paragraph 1 – point e b (new): (eb) whether the Union target is a recipient of funds as defined in Article 2 paragraph 59 of Regulation (EU) 2024/2509, or of any fund or financial instrument established or managed by the Union; and

Article 10 – paragraph 3: deleted

Change 37

ChangedArticle 10 – paragraph 4: 4. Where necessary, the host Member State may request the applicant requesting an authorisation or any other relevant undertaking to provide, inter alia, the information referred to in paragraphsparagraph 1.1 of this Article and Article 8(2). The request for information may concern information necessary for the Member State to determine if any of the conditions set out in Article 5(1) are met. The undertaking concerned shall provide the requested information to the Member State where the foreign investment is planned or has been completed within 15 calendar days of the request.

Change 38

ChangedArticle 10 – paragraph 5: 5. The host Member State and the Commission may request other Member States to seek information from undertakings in their territory, provided this information is relevant and strictly necessary for assessing a foreign investment pursuant to Article 13. The Member State receiving the request to seek information shall, without delay, request the undertaking to provide that information and shall notify it to the host Member State and the Commission, in accordance with the procedure set out in ArticlesArticle 8(2)8(5) and Article 9(6) as applicable.

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ChangedArticle 10 – paragraph 6: 6. A Member State shall notify the Commission and the other Member States concerned if, in exceptional circumstances, it is unable, despite its best efforts, to provide the information referred to in paragraphs 4 or 5 of this Article, in Article 8(5)8(2) or in Article 9(8).9(5). That Member State shall duly explain the reasons for not being able to provide the information.

Change 40

RemovedArticle 11 – paragraph 4: 4. Member States shall ensure that their screening mechanisms give sufficient time and means to assess and give utmost consideration to other Member States’ comments and Commission opinions before a screening decision is taken. This includes having all necessary legal means and powers to consider concerns expressed or likely impacts identified by another Member State or the Commission in its screening decision or in any other relevant instrument at its disposal.

AddedArticle 11 – paragraph 1: 1. Member States shall provide the necessary resources, legal and administrative means to carry out, in an effective and efficient manner, the tasks assigned to them to fulfil the objectives of this Regulation, including their efficient and effective participation in the cooperation mechanism.

RemovedArticle 11 – paragraph 5: 5. Member States shall ensure that their national laws allow compliance with the obligations set out in Article 7(5) to (9b).

AddedArticle 11 – paragraph 4: 4. Member States’ screening mechanisms shall give sufficient means to assess and give utmost consideration to other Member States’ comments and Commission opinions before a screening decision is taken. This includes having all necessary legal means and powers to consider concerns expressed or likely impacts identified by another Member State or the Commission in its screening decision or in any other relevant instrument at its disposal.

RemovedArticle 12 – paragraph 1 – introductory part: 1. Information received in accordance with the procedures set out in Articles 5, 7, 9 and 9b shall be used only for the purpose for which it was requested, unless:

AddedArticle 11 – paragraph 5: 5. Member States shall ensure that their national laws allow compliance with the obligations set out in Article 7.

AddedArticle 11 – paragraph 7: 7. Where mitigating measures in a screening decision require compliance by undertakings established in more than one Member State, the Member States concerned shall cooperate with each other on the monitoring and enforcement of the screening decision. Member States shall ensure that they have all necessary legal means and powers to address effectively the consequences of non-compliance with the mitigating measures provided in a screening decision of another Member State or of the Commission.

AddedArticle 11 – paragraph 7 a (new): 7a. Where, following the adoption of a screening decision, a host Member State imposes penalties in accordance with Article 4(2), point (ha), it shall notify the Commission and the Member States that provided comments on the transaction within a reasonable timeframe.

AddedArticle 12 – paragraph 1 – introductory part: 1. Information received in accordance with the procedures set out in Articles 5, 7, 9 and 9a shall be used only for the purpose for which it was requested, unless:

Article 12 – paragraph 1 – point b: (b) the Court of Justice of the European Union or a court of the host Member State requests such information for the purpose of legal proceedings.

Article 12 – paragraph 4: deleted

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ChangedArticle 12 a (new): Article 12a / Secure and encrypted system and single portal / 1. The Commission shall establish and maintain a secure and encrypted system to facilitate the exchange of information between the contact points. All communications between Member States, as well as between Member States and the Commission under this Regulation, including notifications pursuant to Article 5 and comments and opinions pursuant to Article 7, shall be transmitted exclusively through that secure and encrypted system. / 2. As part of the secure and encrypted system, the Commission shall establish an online single portal for the electronic filing of foreign investments with screening authorities. That single portal shall be operational no later than ... [six months before the date of application of this Regulation]. It shall serve as the entry point for the screening of foreign investments. Member States shall use the single portal to receive filings and for other communications with applicants. / 3. Applicants and their legal representatives shall be able to submit filings through an online form available on the single portal established pursuant to paragraph 3.2 of this Article. The form shall include the information required under Article 10(1). / 4. When submitting a filing, applicants shall select the Member States to which the filing is to be transmitted. Subsequent communications between the recipient Member State and the applicants shall takebe placeconducted through the single portal until the request for authorisation is completed. / 5. All information transmitted through the single portal shall be made available only to the designated …authorisati…

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RemovedArticle 13 – paragraph 2: 2. The Commission shall determine, for the purpose of issuing a duly motivated opinion pursuant to Article 7(2) or (3) or Article 9(7), or a decision pursuant to Article 9b, whether it considers a foreign investment to be likely to negatively affect security or public order.

AddedArticle 12 b (new): Article 12b / Business intelligence capability / The Commission shall develop a business intelligence capability to support the Member States’ screening authorities in identifying potential risks to security and public order related to foreign investments, develop coordinated risk assessments and, in consultation with the Commission expert group on the screening of foreign investments, support a Union FDI capacity-building programme to identify and promote best practices and lessons learned, and offer common training programmes for officials of the Member States.

RemovedArticle 13 – paragraph 3 – point a a (new): (aa) the security, integrity, functioning and resilience of the internal market;

AddedArticle 13 – paragraph 2: 2. The Commission shall determine, for the purpose of issuing a duly motivated opinion pursuant to Article 7(2) or (3) or Article 9(7), or a decision pursuant to Article 7(9b) or (9c), whether it considers a foreign investment to be likely to negatively affect security or public order.

AddedArticle 13 – paragraph 3 – introductory part: 3. When determining whether a foreign investment is likely to negatively affect security or public order, the Member States or the Commission shall in particular consider whether the investment concerned is likely to negatively affect:

AddedArticle 13 – paragraph 3 – point a: (a) the security, integrity, functioning and resilience of critical infrastructure, including the land and property critical to the use of such critical infrastructure, whether physical or virtual; in that context, based on the information available, it shall also be assessed whether the foreign investment is likely to negatively affect the resilience of any of the critical entities they have identified under Directive (EU) 2022/2557 of the European Parliament and of the Council20 as well as entities in scope of Directive (EU) 2022/2555 of the European Parliament and of the Council21 . The results of the Union level coordinated security risk assessments, including those concerning critical supply chains carried out in accordance with Article 22(1) of Directive (EU) 2022/2555 shall be taken into account, covering both technical and non-technical risk factors;

AddedArticle 13 – paragraph 3 – point a a (new): (aa) the security of military facilities and other sensitive public facilities in the immediate geographical proximity of the Union target;

AddedArticle 13 – paragraph 3 – point a b (new): (ab) the security, integrity, functioning, operational stability and resilience of the internal market;

Article 13 – paragraph 3 – point b: (b) the availability and uptake of critical technologies, technology security and technology leakage;

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ChangedArticle 13 – paragraph 3 – point cc: a(c) (new):the (ca)security theand capacityresilience toof addresssupply strategicchains dependencies;for critical inputs;

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AddedArticle 13 – paragraph 3 – point c a (new): (ca) food security;

AddedArticle 13 – paragraph 3 – point c b (new): (cb) the capacity to avoid and address strategic dependencies;

AddedArticle 13 – paragraph 3 – point c c (new): (cc) the protection of the financial and economic stability of the Union;

AddedArticle 13 – paragraph 3 – point c d (new): (cd) the provision of essential services and services of general interest;

AddedArticle 13 – paragraph 3 – point d: (d) the protection of sensitive information, including personal data as defined in Article 4, point (1), of Regulation (EU) 2016/6791a, in particular with regard to the ability of the foreign investor to access, control, and otherwise process such information; / 1a Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1–88, ELI: http://data.europa.eu/eli/reg/2016/679/oj).

AddedArticle 13 – paragraph 3 – point d a (new): (da) the protection of intellectual property, knowledge or other intangible assets;

AddedArticle 13 – paragraph 3 – point e: (e) the freedom and pluralism of the media, including online and social media platforms that can be used for large scale disinformation or criminal activities, fundamental rights, civic discourse and electoral processes, as well as the neutrality, objectivity and pluralism of education; or

AddedArticle 13 – paragraph 3 – point e a (new): (ea) the likelihood of economic coercion by a third country falling within the scope of Article 2 of Regulation (EU) 2023/26751a. / 1a Regulation (EU) 2023/2675 of the European Parliament and of the Council of 22 November 2023 on the protection of the Union and its Member States from economic coercion by third countries (OJ L, 2023/2675, 7.12.2023, ELI: http://data.europa.eu/eli/reg/2023/2675/oj).

AddedArticle 13 – paragraph 4 – point -a (new): (-a) whether the foreign investor or the foreign investor’s subsidiary in the Union is directly or indirectly controlled by the government, including state bodies, regional or local authorities or armed forces, of a third country, including through ownership structure, significant funding, special rights or state-appointed directors or managers, or other features aimed at influencing management decisions, such as golden shares;

AddedArticle 13 – paragraph 4 – point a: (a) whether the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of the foreign investor was involved in a foreign investment previously screened by a Member State or, where available, by a third country with an established foreign direct investment screening mechanism, with which the Union cooperates in investment screening matters and that was not authorised or was only authorised with conditions; to determine this, Member States and the Commission shall rely on information available to them, including the information contained in the secure database set up pursuant to Article 12a (6a);

AddedArticle 13 – paragraph 4 – point d: (d) whether the foreign investor or any of its subsidiaries has engaged in illegal or criminal activities, including money laundering and the circumvention of Union restrictive measures pursuant to Article 215 TFEU;

AddedArticle 13 – paragraph 4 – point e: (e) whether the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of the foreign investor is likely to pursue a third country’s policy objectives, support risks of violations of international law by a third country, or facilitate the development of a third country’s military capabilities;

AddedArticle 13 – paragraph 4 – point e a (new): (ea) whether the foreign investor is established in a third country subject to Union restrictive measures pursuant to Article 215 TFEU, in a jurisdiction identified as a third country with significant strategic deficiencies in its national AML/CFT regime in accordance with Article 29 of Regulation (EU) 2024/1624 of the European Parliament and of the Council, or in a country pursuing an aggressive civil-military fusion strategy;

AddedArticle 13 – paragraph 4 – point e b (new): (eb) whether the foreign investor or any of its subsidiaries is established in a third country whose legislation permits arbitrary access to company operations or data, including commercially sensitive information, and imposes obligations on companies to share information for intelligence purposes without democratic checks and balances, oversight mechanisms, due process, or the right to appeal to an independent court or tribunal.