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Figure 2 – Formal FDI screening mechanisms in the EU (as of April 2019)

Formal FDI screening mechanisms in the EU (as of April 2019)

Formal FDI screening mechanisms in the EU (as of April 2019)

As for Hungary, in October 2018, its Parliament endorsed a new law which requires ministerial approval for FDI in specific sectors. It entered into force on 1 January 2019, raising the number of screening EU Member States to 14 (see Figure 2).
In the Netherlands, legislation on FDI screening concerning the energy sector has been in place since 2012. In 2017, the Dutch government considered a telecommunications sector draft bill to block undesirable takeovers. It would vest the respective minister with the right to order a shareholder to reduce their stake in a telecoms firm to below 30% or to refrain from making use of their voting rights. After public consultation and inter-ministerial discussions the bill is expected to be submitted to the Second Chamber of Dutch Parliament in the course of 2019. More legislative initiatives may be taken in the future on FDI screening in other sectors. Paragraph 4.2 of the new Dutch Defence Industry Strategy for instance sets out how the Dutch government deals with FDI in the sensitive sector of the defence industry, and announces an analysis which may result in additional legislative measures.
In the Czech Republic a proposal for a national screening mechanism is under preparation. Among the Nordic countries, Norway adopted related legislation that entered into force on 1 January 2019 and Sweden is reportedly also looking into the matter.

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