European Parliament Votes to Make FDI Screening Mandatory in All 27 EU Member States

The European Parliament voted during its May plenary session in Strasbourg on May 14 to establish a mandatory EU-wide foreign direct investment (FDI) screening framework, replacing the current voluntary system under which individual member states — particularly smaller ones — could decline to screen incoming investments. The new regulation mandates screening for acquisitions and investments in AI, quantum computing, semiconductors, critical infrastructure, space technology, and dual-use goods. The law directly addresses intelligence-agency and Commission assessments that strategic investors from China and Russia had exploited gaps in unscreened member states to acquire sensitive assets through back-door routes. The Parliament also voted during the same plenary on Slovakia's compliance with EU rule of law and fundamental rights standards, with MEPs scrutinising the Fico government's record on media freedom and judicial independence.