FDI screening reaches EU-wide coverage as cooperation activity hits record high - A&O Shearman

FDI Screening Reaches EU-Wide Coverage as Cooperation Activity Hits Record High

Foreign direct investment (FDI) screening in the European Union has reached a historic milestone with all 27 member states now maintaining frameworks to screen investments. According to recent insights published by A&O Shearman analyzing the European Commission's report, notification activity and cross-border cooperation under EU mechanisms climbed to record levels in 2025.

During 2025, member states handled 4,773 requests for authorization and ex officio cases, marking a 52% increase from the 3,136 cases recorded in 2024. Of those total cases, 38% proceeded to formal screening. The growth follows widespread adoption and operationalization of national laws across several countries, including Croatia, Cyprus, Greece, Bulgaria, and Ireland. Existing regimes across the bloc have also continued to evolve through legislative updates and tighter thresholds.

The data highlights that manufacturing, information and communications technology (ICT), financial activities, wholesale and retail, and professional activities remained the top sectors for FDI notifications. Furthermore, the EU cooperation mechanism saw significant activity, with critical technologies in manufacturing—such as aerospace, defense, and semiconductors—triggering the largest share of in-depth European Commission phase 2 reviews.