BDO Legal Guide to Foreign Direct Investment Screening Mechanism in Europe

On 11 October 2020, the European Union Regulation establishing a framework for the screening of Foreign Direct Investments into the European Union (EU) became applicable.
The first thing to note is that Regulation 2019/452 does not obligate Member States to apply a Foreign Direct Investment (FDI) control mechanism, rather it establishes a European framework of recommendations and requirements to be followed by those countries that do apply this type of mechanism, as well as standard Cooperation Mechanisms between the European Commission and the Member States.
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