Regulation (EU) 2026/1386 on the screening of foreign investments in the Union was published in the Official Journal of the European Union

On 26 June 2026, Regulation (EU) 2026/1386 (the “Regulation”) was published in the Official Journal of the European Union, through which the European Union strengthens the common framework for foreign investment screening in the Union, repealing the previous Regulation (EU) 2019/452.

The new text confirms that the screening of foreign investments remains a competence of Member States, while introducing a higher level of harmonization, with the aim of reducing asymmetries between national regimes and improving coordination in cases that may affect the security or public order of the Union.

Among the main innovations introduced by the Regulation is the strengthening of the cooperation mechanism between Member States and the European Commission, which becomes central to identifying cross-border transactions or investments in sensitive sectors, such as, for example, investments in critical infrastructure, strategic technologies, energy, defense, data and other areas of relevance for European economic security. In particular, the Regulation aims to make the exchange of information relating to foreign investments affecting the above-mentioned areas more timely and structured.

The Regulation entered into force on 16 July 2026 and will apply from 17 January 2028.