In January 2024, the
Commission unveiled its proposal for a revised foreign direct investment (FDI)
Screening Regulation. While the proposal does not openly question the Member
States’ final say in screening decisions, the mechanism for administrative
cooperation would be considerably enhanced compared to the current legislative
framework. The paper assesses in how far the changes to the cooperation
mechanism under the Commission proposal may contribute to Europeanization of
FDI screening. It argues that the proposal fits into the geo-economic turn of
the Union. At the same time, it showcases the limits the Union’s status quo
poses to reacting adequately to the ongoing geopolitical upheavals. Underlying
the Commission proposal is a considerable reliance on the effectiveness of
political peer pressure and soft law instruments, instead of hard regulation.
Given that the Commission proposal is largely a middle ground between the
negotiating positions of the Parliament and the Council in the current ongoing
trilogue, it is not unlikely that this is where we will end up.