21.3.

2019 EN Official Journal of the European Union L 79 I/1

(Legislative acts)

REGULATIONS

REGULATION (EU) 2019/452 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 19 March 2019
establishing a framework for the screening of foreign direct investments into the Union

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 207(2) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee (1),

Having regard to the opinion of the Committee of the Regions (2),

Acting in accordance with the ordinary legislative procedure (3),

Whereas:

(1) Foreign direct investment contributes to the Union's growth by enhancing its competitiveness, creating jobs and
economies of scale, bringing in capital, technologies, innovation, expertise, and by opening new markets for the
Union's exports. It supports the objectives of the Investment Plan for Europe and contributes to other Union
projects and programmes.

(2) Article 3(5) of the Treaty on European Union (TEU) specifies that the Union, in its relations with the wider
world, shall uphold and promote its values and interests and contribute to the protection of its citizens. Moreover,
the Union and the Member States have an open investment environment, which is enshrined in the Treaty on the
Functioning of the European Union (TFEU) and embedded in the international commitments of the Union and its
Member States with respect to foreign direct investment.

(3) Pursuant to the international commitments undertaken in the World Trade Organization (WTO), in the
Organisation for Economic Cooperation and Development, and in the trade and investment agreements
concluded with third countries, it is possible for the Union and the Members States to adopt restrictive measures
relating to foreign direct investment on the grounds of security or public order, subject to certain
requirements. The framework established by this Regulation relates to foreign direct investments into the Union.
Outward investment and access to third country markets are dealt with under other trade and investment policy
instruments.

(4) This Regulation is without prejudice to the right of Member States to derogate from the free movement of capital
as provided for in point (b) of Article 65(1) TFEU. Several Member States have put in place measures according
to which they may restrict such movement on grounds of public policy or public security. Those measures reflect
the objectives and concerns of Member States with respect to foreign direct investment, and might result in

(1) OJ C 262, 25.7.2018, p. 94.

(2) OJ C 247, 13.7.2018, p. 28.
(3) Position of the European Parliament of 14 February 2019 (not yet published in the Official Journal) and decision of the Council of
5 March 2019.
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a number of mechanisms which are different in terms of scope and procedure. Member States wanting to put in
place such mechanisms in the future could take into account the functioning, experiences and best practices of
existing mechanisms.

(5) There is currently no comprehensive framework at Union level for the screening of foreign direct investments on
the grounds of security or public order, while the major trading partners of the Union have already developed
such frameworks.

(6) Foreign direct investment falls within the field of the common commercial policy. In accordance with point (e) of
Article 3(1) TFEU, the Union has exclusive competence with respect to the common commercial policy.

(7) It is important to provide legal certainty for Member States' screening mechanisms on the grounds of security
and public order, and to ensure Union-wide coordination and cooperation on the screening of foreign direct
investments likely to affect security or public order. That common framework is without prejudice to sole re­
sponsibility of Member States for safeguarding their national security, as provided for in Article 4(2) TEU. It is
also without prejudice to the protection of their essential security interests in accordance with Article 346 TFEU.

(8) The framework for the screening of foreign direct investments and for cooperation should provide Member States
and the Commission with the means to address risks to security or public order in a comprehensive manner, and
to adapt to changing circumstances, while maintaining the necessary flexibility for Member States to screen
foreign direct investments on grounds of security and public order taking into account their individual situations
and national specificities. The decision on whether to set up a screening mechanism or to screen a particular
foreign direct investment remains the sole responsibility of the Member State concerned.

(9) A broad range of investments which establish or maintain lasting and direct links between investors from third
countries including State entities, and undertakings carrying out an economic activity in a Member State should
be covered by this Regulation. It should, however, not cover portfolio investment.

(10) Member States that have a screening mechanism in place should provide for the necessary measures, in
compliance with Union law, to prevent circumvention of their screening mechanisms and screening decisions. This
should cover investments from within the Union by means of artificial arrangements that do not reflect
economic reality and circumvent the screening mechanisms and screening decisions, where the investor is
ultimately owned or controlled by a natural person or an undertaking of a third country. This is without
prejudice to the freedom of establishment and the free movement of capital enshrined in the TFEU.

(11) It should be possible for Member States to assess risks to security or public order arising from significant changes
to the ownership structure or key characteristics of a foreign investor.

(12) To guide Member States and the Commission in the application of this Regulation, it is appropriate to provide
a list of factors that could be taken into consideration when determining whether a foreign direct investment is
likely to affect security or public order. That list will also improve the transparency of Member States' screening
mechanisms for investors considering making or having made foreign direct investments in the Union. The list of
factors that might affect security or public order should remain non-exhaustive.

(13) In determining whether a foreign direct investment may affect security or public order, it should be possible for
Member States and the Commission to consider all relevant factors, including the effects on critical infrastructure,
technologies (including key enabling technologies) and inputs which are essential for security or the maintenance
of public order, the disruption, failure, loss or destruction of which would have a significant impact in a Member
State or in the Union. In that regard, it should also be possible for Member States and the Commission to take
into account the context and circumstances of the foreign direct investment, in particular whether a foreign
investor is controlled directly or indirectly, for example through significant funding, including subsidies, by the
government of a third country or is pursuing State-led outward projects or programmes.

(14) Member States or the Commission, as appropriate, might consider relevant information received from economic
operators, civil society organisations, or social partners such as trade unions, in relation to a foreign direct
investment likely to affect security or public order.
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(15) It is appropriate to lay down the essential elements of the framework for the screening of foreign direct
investments by a Member State to allow investors, the Commission and other Member States to understand how
such investments are likely to be screened. Those elements should at least include timeframes for the screening
and the possibility for foreign investors to seek recourse against screening decisions. Rules and procedures
relating to screening mechanisms should be transparent and should not discriminate between third countries.

(16) A mechanism which enables Member States to cooperate and assist each other where a foreign direct investment
in one Member State could affect security or public order in other Member States should be set up. It should be
possible for Member States to provide comments to a Member State in which such investment is planned or has
been completed, irrespective of whether that Member State has a screening mechanism in place, or such an
investment is undergoing screening. Requests for information, replies and comments of Member States should
also be forwarded to the Commission. It should be possible for the Commission, where appropriate, to issue an
opinion within the meaning of Article 288 TFEU to the Member State in which the investment is planned or has
been completed. It should also be possible for a Member State to request the Commission to issue an opinion or
other Member States to provide comments on a foreign direct investment taking place in its territory.

(17) When a Member State receives comments from other Member States or an opinion from the Commission, it
should give such comments or opinion due consideration through, where appropriate, measures available under
its national law, or in its broader policy-making, in line with its duty of sincere cooperation laid down in
Article 4(3) TEU.

The final decision in relation to any foreign direct investment undergoing screening or any measure taken in
relation to a foreign direct investment not undergoing screening remains the sole responsibility of the Member
State where the foreign direct investment is planned or completed.

(18) The cooperation mechanism should only be used for the purpose of protecting security or public order. For that
reason, Member States should duly justify any request for information regarding a specific foreign direct
investment in another Member State, as well as any comment they address to that Member State. The same
requirements should apply when the Commission requests information on a particular foreign direct investment
or issues an opinion to a Member State. Compliance with those requirements is also important in situations
where an investor of a Member State competes with investors of third countries for making an investment in
another Member State such as acquiring assets.

(19) Furthermore, it should be possible for the Commission to provide an opinion within the meaning of Article 288
TFEU with regard to foreign direct investments likely to affect projects and programmes of Union interest on
grounds of security or public order. This would give the Commission a tool to protect projects and programmes
which serve the Union as a whole and represent an important contribution to its economic growth, jobs and
competitiveness. This should include in particular projects and programmes involving substantial Union funding
or established by Union law regarding critical infrastructure, critical technologies or critical inputs. Those projects
or programmes of Union interest should be listed in this Regulation. An opinion which is addressed to a Member
State should also be simultaneously sent to the other Member States.

The Member State should take utmost account of the opinion received from the Commission through, where
appropriate, measures available under its national law, or in its broader policy-making, and provide an
explanation to the Commission if it does not follow that opinion, in line with its duty of sincere cooperation
under Article 4(3) TEU. The final decision in relation to any foreign direct investment undergoing screening or
any measure taken in relation to a foreign direct investment not undergoing screening remains the sole responsi­
bility of the Member State where the foreign direct investment is planned or completed.

(20) In order to take into account developments relating to projects and programmes of Union interest, the power to
adopt acts in accordance with Article 290 TFEU should be delegated to the Commission to amend the list of
projects and programmes of Union interest set out in the Annex to this Regulation. It is of particular importance
that the Commission carry out appropriate consultations during its preparatory work, including at expert level,
and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional
Agreement of 13 April 2016 on Better Law-Making (4). In particular, to ensure equal participation in the
preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as
Member States' experts, and their experts systematically have access to meetings of Commission expert groups
dealing with the preparation of delegated acts.

(4) OJ L 123, 12.5.2016, p. 1.

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(21) In order to provide greater certainty for investors, Member States should have the possibility to make comments
and the Commission should have the possibility to issue an opinion in relation to completed investments not
undergoing screening for a period limited to 15 months after the completion of the foreign direct investment.
The cooperation mechanism should not apply to foreign direct investments completed before 10 April 2019.

(22) Member States should notify their screening mechanisms and any amendment thereto to the Commission, and
should report on the application of their screening mechanisms on an annual basis, including on decisions
allowing, prohibiting or subjecting foreign direct investments to conditions or mitigating measures and on
decisions regarding foreign direct investments likely to affect projects or programmes of Union interest. All
Member States should report on the foreign direct investments that took place in their territory, on the basis of
the information available to them. In order to improve the quality and comparability of information provided by
Member States as well as to facilitate compliance with the notification and reporting obligations, the Commission
should provide standardised forms considering, inter alia, relevant forms applied for the purpose of reporting to
Eurostat, where appropriate.

(23) In order to ensure the effectiveness of the cooperation mechanism, it is also important to ensure a minimum
level of information and coordination with regard to foreign direct investments falling under the scope of this
Regulation in all Member States. That information should be made available by Member States for foreign direct
investments undergoing screening as well as, upon request, for other foreign direct investments. Relevant
information should include aspects such as the ownership structure of the foreign investor and the financing of
the planned or completed investment, including, when available, information about subsidies granted by third
countries. Member States should seek to provide accurate, comprehensive and reliable information.

(24) Upon request by a Member State where a foreign direct investment is planned or has been completed, the foreign
investor or the undertaking concerned should provide the information requested. In exceptional circumstances,
when, despite its best efforts, a Member State is unable to obtain such information, it should notify the Member
States concerned or the Commission without delay. In such a case, it should be possible that any comment issued
by another Member State or any opinion issued by the Commission in the framework of the cooperation
mechanism be made on the basis of the information available to them.

(25) When making available the information requested, Member States are to comply with Union law and national
law that complies with Union law.

(26) The communication and cooperation at Member State and Union level should be enhanced through the
establishment of a contact point for the implementation of this Regulation in each Member State and the
Commission.

(27) The contact points established by the Member States and the Commission should be appropriately placed within
the respective administration, and should have the qualified staff and the powers necessary to perform their
functions under the coordination mechanism and to ensure a proper handling of confidential information.

(28) The development and implementation of comprehensive and effective policies should be supported by the
Commission group of experts on the screening of foreign direct investments into the European Union, set up by
Commission Decision of 29 November 2017 (5), composed of representatives of the Member States. That group
should discuss, in particular, issues related to the screening of foreign direct investments, share best practices and
lessons learned and exchange views on trends and issues of common concern related to foreign direct
investments. The Commission should consider seeking the advice of the group on systemic issues relating to the
implementation of this Regulation. The Commission should consult the expert group on draft delegated acts in
accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-
Making.

(29) Member States and the Commission should be encouraged to cooperate with the responsible authorities of like-
minded third countries on issues related to screening of foreign direct investments likely to affect security or
public order. Such administrative cooperation should aim to strengthen the effectiveness of the framework for
screening of foreign direct investments by Member States and the cooperation between Member States and the
Commission pursuant to this Regulation. It should also be possible for the Commission to monitor developments
with regard to screening mechanisms in third countries.

(5) Commission Decision of 29 November 2017 setting up the group of experts on the screening of foreign direct investments into the
European Union (not published in the Official Journal), C(2017) 7866 final.
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(30) Member States and the Commission should take all necessary measures to ensure the protection of confidential
information in compliance with, in particular, Commission Decision (EU, Euratom) 2015/443 (6), Commission
Decision (EU, Euratom) 2015/444 (7) and the Agreement between the Member States of the European Union,
meeting within the Council, regarding the protection of classified information exchanged in the interests of the
European Union (8). This includes, in particular, the obligation not to downgrade or declassify classified
information without the prior written consent of the originator (9). Any non-classified sensitive information or
information which is provided on a confidential basis should be handled as such by the authorities.

(31) Any processing of personal data pursuant to this Regulation should comply with the applicable rules on the
protection of personal data. Processing of personal data by the contact points and other entities within Member
States should be carried out in accordance with Regulation (EU) 2016/679 of the European Parliament and of the
Council (10). Processing of personal data by the Commission should be carried out in accordance with Regulation
(EU) 2018/1725 of the European Parliament and of the Council (11).

(32) On the basis of, inter alia, the annual reports submitted by all Member States, and with due respect to the
confidential nature of certain information included in those reports, the Commission should draw up an annual
report on the implementation of this Regulation and submit it to the European Parliament and to the Council.
For greater transparency, the report should be made public.

(33) The European Parliament should have the possibility to invite the Commission to a meeting of its committee
responsible to present and explain systemic issues related to the implementation of this Regulation.

(34) By 12 October 2023 and every five years thereafter, the Commission should evaluate the functioning and
effectiveness of this Regulation and present a report to the European Parliament and to the Council. That report
should include an assessment of whether or not this Regulation requires an amendment. Where the report
proposes amending this Regulation, it may be accompanied by a legislative proposal.

(35) The implementation of this Regulation by the Union and the Member States should comply with the relevant
requirements for the imposition of restrictive measures on grounds of security and public order in the WTO
agreements, including, in particular, Article XIV(a) and Article XIV bis of the General Agreement on Trade in
Services (12) (GATS). It should also comply with Union law and be consistent with commitments made under
other trade and investment agreements to which the Union or Member States are parties and trade and
investment arrangements to which the Union or Member States are adherents.

(36) When a foreign direct investment constitutes a concentration falling within the scope of Council Regulation (EC)
No 139/2004 (13), the application of this Regulation should be without prejudice to the application of
Article 21(4) of Regulation (EC) No 139/2004. This Regulation and Article 21(4) of Regulation (EC)
No 139/2004 should be applied in a consistent manner. To the extent that the respective scope of application of
those two regulations overlap, the grounds for screening set out in Article 1 of this Regulation and the notion of
legitimate interests within the meaning of the third paragraph of Article 21(4) of Regulation (EC) No 139/2004
should be interpreted in a coherent manner, without prejudice to the assessment of the compatibility of the
national measures aimed at protecting those interests with the general principles and other provisions of Union
law.

(6) Commission Decision (EU, Euratom) 2015/443 of 13 March 2015 on security in the Commission (OJ L 72, 17.3.2015, p. 41).
(7) Commission Decision (EU, Euratom) 2015/444 of 13 March 2015 on the security rules for protecting EU classified information
(OJ L 72, 17.3.2015, p. 53).
(8) OJ C 202, 8.7.2011, p. 13.
(9) Point (a) of Article 4(1) of the Agreement between the Member States of the European Union, meeting within the Council, regarding the
protection of classified information exchanged in the interests of the European Union and Article 4(2) of Decision (EU, Euratom)
2015/444.
(10) Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with
regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data
Protection Regulation) (OJ L 119, 4.5.2016, p. 1).
(11) Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons
with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such
data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39).
(12) OJ L 336, 23.12.1994, p. 191.
(13) Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (OJ L 24, 29.1.2004,
p. 1).
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(37) This Regulation does not affect Union rules for the prudential assessment of acquisitions of qualifying holdings in
the financial sector, which is a distinct procedure with a specific objective (14).

(38) This Regulation is consistent with and without prejudice to other notification and screening procedures set out in
sectoral Union law,

HAVE ADOPTED THIS REGULATION:

Article 1

Subject matter and scope

1. This Regulation establishes a framework for the screening by Member States of foreign direct investments into the
Union on the grounds of security or public order and for a mechanism for cooperation between Member States, and
between Member States and the Commission, with regard to foreign direct investments likely to affect security or public
order. It includes the possibility for the Commission to issue opinions on such investments.

2. This Regulation is without prejudice to each Member State having sole responsibility for its national security, as
provided for in Article 4(2) TEU, and to the right of each Member State to protect its essential security interests in
accordance with Article 346 TFEU.

3. Nothing in this Regulation shall limit the right of each Member State to decide whether or not to screen
a particular foreign direct investment within the framework of this Regulation.

Article 2

Definitions

For the purposes of this Regulation, the following definitions apply:

(1) ‘foreign direct investment’ means an investment of any kind by a foreign investor aiming to establish or to maintain
lasting and direct links between the foreign investor and the entrepreneur to whom or the undertaking to which the
capital is made available in order to carry on an economic activity in a Member State, including investments which
enable effective participation in the management or control of a company carrying out an economic activity;
(2) ‘foreign investor’ means a natural person of a third country or an undertaking of a third country, intending to make
or having made a foreign direct investment;
(3) ‘screening’ means a procedure allowing to assess, investigate, authorise, condition, prohibit or unwind foreign direct
investments;
(4) ‘screening mechanism’ means an instrument of general application, such as a law or regulation, and accompanying
administrative requirements, implementing rules or guidelines, setting out the terms, conditions and procedures to
assess, investigate, authorise, condition, prohibit or unwind foreign direct investments on grounds of security or
public order;
(5) ‘foreign direct investment undergoing screening’ means a foreign direct investment undergoing a formal assessment
or investigation pursuant to a screening mechanism;
(6) ‘screening decision’ means a measure adopted in application of a screening mechanism;
(7) ‘undertaking of a third country’ means an undertaking constituted or otherwise organised under the laws of a third
country.

Article 3

Screening mechanisms of Member States

1. In accordance with this Regulation, Member States may maintain, amend or adopt mechanisms to screen foreign
direct investments in their territory on the grounds of security or public order.

(14) As introduced by Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of
credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and
repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338); Directive 2009/138/EC of the European Parliament
and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II)
(OJ L 335, 17.12.2009, p. 1); Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in
financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349).
21.3.2019 EN Official Journal of the European Union L 79 I/7

2. Rules and procedures related to screening mechanisms, including relevant timeframes, shall be transparent and not
discriminate between third countries. In particular, Member States shall set out the circumstances triggering the
screening, the grounds for screening and the applicable detailed procedural rules.

3. Member States shall apply timeframes under their screening mechanisms. The screening mechanisms shall allow
Member States to take into account the comments of other Member States referred to in Article 6 and 7 and the
opinions of the Commission referred to in Articles 6, 7 and 8.

4. Confidential information, including commercially-sensitive information, made available to the Member State
undertaking the screening shall be protected.

5. Foreign investors and the undertakings concerned shall have the possibility to seek recourse against screening
decisions of the national authorities.

6. Member States which have a screening mechanism in place shall maintain, amend or adopt measures necessary to
identify and prevent circumvention of the screening mechanisms and screening decisions.

7. Member States shall notify the Commission of their existing screening mechanisms by 10 May 2019. Member
States shall notify the Commission of any newly adopted screening mechanism or any amendment to an existing
screening mechanism within 30 days of the entry into force of the newly adopted screening mechanism or of any
amendment to an existing screening mechanism.

8. No later than three months after having received the notifications referred to in paragraph 7, the Commission shall
make publicly available a list of Member States' screening mechanisms. The Commission shall keep that list up to date.

Article 4

Factors that may be taken into consideration by Member States or the Commission

1. In determining whether a foreign direct investment is likely to affect security or public order, Member States and
the Commission may consider its potential effects on, inter alia:

(a) critical infrastructure, whether physical or virtual, including energy, transport, water, health, communications, media,
data processing or storage, aerospace, defence, electoral or financial infrastructure, and sensitive facilities, as well as
land and real estate crucial for the use of such infrastructure;

(b) critical technologies and dual use items as defined in point 1 of Article 2 of Council Regulation (EC)
No 428/2009 (15), including artificial intelligence, robotics, semiconductors, cybersecurity, aerospace, defence, energy
storage, quantum and nuclear technologies as well as nanotechnologies and biotechnologies;

(c) supply of critical inputs, including energy or raw materials, as well as food security;

(d) access to sensitive information, including personal data, or the ability to control such information; or

(e) the freedom and pluralism of the media.

2. In determining whether a foreign direct investment is likely to affect security or public order, Member States and
the Commission may also take into account, in particular:

(a) whether the foreign investor is directly or indirectly controlled by the government, including state bodies or armed
forces, of a third country, including through ownership structure or significant funding;

(b) whether the foreign investor has already been involved in activities affecting security or public order in a Member
State; or

(c) whether there is a serious risk that the foreign investor engages in illegal or criminal activities.

(15) Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and
transit of dual-use items (OJ L 134, 29.5.2009, p. 1).
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Article 5

Annual reporting

1. By 31 March of each year, Member States shall submit to the Commission an annual report covering the preceding
calendar year, which shall include aggregated information on foreign direct investments that took place in their territory,
on the basis of information available to them, as well as aggregated information on the requests received from other
Member States pursuant to Articles 6(6) and 7(5).

2. For each reporting period, Member States that maintain screening mechanisms shall, in addition to the
information referred to in paragraph 1, provide aggregated information on the application of their screening
mechanisms.

3. The Commission shall provide an annual report on the implementation of this Regulation to the European
Parliament and to the Council. That report shall be made public.

4. The European Parliament may invite the Commission to a meeting of its committee responsible to present and
explain systemic issues related to the implementation of this Regulation.

Article 6

Cooperation mechanism in relation to foreign direct investments undergoing screening

1. Member States shall notify the Commission and the other Member States of any foreign direct investment in their
territory that is undergoing screening by providing the information referred to in Article 9(2) of this Regulation as soon
as possible. The notification may include a list of Member States whose security or public order is deemed likely to be
affected. As part of the notification, and where applicable, the Member State undertaking the screening shall endeavour
to indicate whether it considers that the foreign direct investment undergoing screening is likely to fall within the scope
of Regulation (EC) No 139/2004.

2. Where a Member State considers that a foreign direct investment undergoing screening in another Member State is
likely to affect its security or public order, or has information relevant for such screening, it may provide comments to
the Member State undertaking the screening. The Member State providing comments shall send those comments to the
Commission simultaneously.

The Commission shall notify the other Member States that comments were provided.

3. Where the Commission considers that a foreign direct investment undergoing screening is likely to affect security
or public order in more than one Member State, or has relevant information in relation to that foreign direct
investment, it may issue an opinion addressed to the Member State undertaking the screening. The Commission may
issue an opinion irrespective of whether other Member States have provided comments. The Commission may issue an
opinion following comments from other Member States. The Commission shall issue such opinion where justified, after
at least one third of Member States consider that a foreign direct investment is likely to affect their security or public
order.

The Commission shall notify the other Member States that an opinion was issued.

4. A Member State which duly considers that a foreign direct investment in its territory is likely to affect its security
or public order may request the Commission to issue an opinion or other Member States to provide comments.

5. The comments referred to in paragraph 2 and the opinions referred to in paragraph 3 shall be duly justified.

6. No later than 15 calendar days following the receipt of the information referred to in paragraph 1, other Member
States and the Commission shall notify the Member State undertaking the screening of their intention to provide
comments pursuant to paragraph 2 or an opinion pursuant to paragraph 3. The notification may include a request for
additional information to the information referred to in paragraph 1.

Any request for additional information shall be duly justified, limited to information necessary to provide comments
pursuant to paragraph 2 or to issue an opinion pursuant to paragraph 3, proportionate to the purpose of the request
and not unduly burdensome for the Member State undertaking the screening. Requests for information and replies
provided by Member States shall be sent to the Commission simultaneously.

7. Comments referred to in paragraph 2 or opinions referred to in paragraph 3 shall be addressed to the Member
State undertaking the screening and shall be sent to it within a reasonable period of time, and in any case no later than
35 calendar days following receipt of the information referred to in paragraph 1.
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Notwithstanding the first subparagraph, if additional information was requested pursuant to paragraph 6, such
comments or opinions shall be issued no later than 20 calendar days following receipt of the additional information or
the notification pursuant to Article 9(5).

Notwithstanding paragraph 6, the Commission may issue an opinion following comments from other Member States
where possible within the deadlines referred to in this paragraph, and in any case no later than five calendar days after
those deadlines have expired.

8. In the exceptional case where the Member State undertaking the screening considers that its security or public
order requires immediate action, it shall notify the other Member States and the Commission of its intention to issue
a screening decision before the timeframes referred to in paragraph 7 and duly justify the need for immediate action.
The other Member States and the Commission shall endeavour to provide comments or to issue an opinion expedi­
tiously.

9. The Member State undertaking the screening shall give due consideration to the comments of the other Member
States referred to in paragraph 2 and to the opinion of the Commission referred to in paragraph 3. The final screening
decision shall be taken by the Member State undertaking the screening.

10. Cooperation pursuant to this Article shall take place through the contact points established in accordance with
Article 11.

Article 7

Cooperation mechanism in relation to foreign direct investments not undergoing screening

1. Where a Member State considers that a foreign direct investment planned or completed in another Member State
which is not undergoing screening in that Member State is likely to affect its security or public order, or has relevant
information in relation to that foreign direct investment, it may provide comments to that other Member State. The
Member State providing comments shall send those comments to the Commission simultaneously.

The Commission shall notify the other Member States that comments were provided.

2. Where the Commission considers that a foreign direct investment planned or completed in a Member State which
is not undergoing screening in that Member State is likely to affect security or public order in more than one Member
State, or has relevant information in relation to that foreign direct investment, it may issue an opinion addressed to the
Member State in which the foreign direct investment is planned or has been completed. The Commission may issue an
opinion irrespective of whether other Member States have provided comments. The Commission may issue an opinion
following comments from other Member States. The Commission shall issue such opinion where justified, after at least
one third of Member States consider that a foreign direct investment is likely to affect their security or public order.

The Commission shall notify the other Member States that an opinion was issued.

3. A Member State which duly considers that a foreign direct investment in its territory is likely to affect its security
or public order may request the Commission to issue an opinion, or other Member States to provide comments.

4. The comments referred to in paragraph 1 and the opinions referred to in paragraph 2 shall be duly justified.

5. Where a Member State or the Commission considers that a foreign direct investment which is not undergoing
screening is likely to affect security or public order as referred to in paragraph 1 or 2, it may request from the Member
State where the foreign direct investment is planned or has been completed the information referred to in Article 9.

Any request for information shall be duly justified, limited to information necessary to provide comments pursuant to
paragraph 1, or to issue an opinion pursuant to paragraph 2, proportionate to the purpose of the request and not
unduly burdensome for the Member State where the foreign direct investment is planned or has been completed.

Requests for information and replies provided by Member States shall be sent to the Commission simultaneously.

6. Comments pursuant to paragraph 1 or opinions pursuant to paragraph 2 shall be addressed to the Member State
where the foreign direct investment is planned or has been completed and shall be sent to it within a reasonable period
of time, and in any case no later than 35 calendar days following receipt of the information referred to in paragraph 5
or of the notification pursuant to Article 9(5). In cases where the opinion of the Commission follows comments from
other Member States, the Commission shall have 15 additional calendar days for issuing that opinion.
L 79 I/10 EN Official Journal of the European Union 21.3.2019

7. A Member State where a foreign direct investment is planned or has been completed shall give due consideration
to the comments of the other Member States and to the opinion of the Commission.

8. Member States may provide comments pursuant to paragraph 1 and the Commission may provide an opinion
pursuant to paragraph 2 no later than 15 months after the foreign direct investment has been completed.

9. Cooperation pursuant to this Article shall take place through the contact points established in accordance with
Article 11.

10. This Article shall not apply to foreign direct investments completed before 10 April 2019.

Article 8

Foreign direct investments likely to affect projects or programmes of Union interest

1. Where the Commission considers that a foreign direct investment is likely to affect projects or programmes of
Union interest on grounds of security or public order, the Commission may issue an opinion addressed to the Member
State where the foreign direct investment is planned or has been completed.

2. The procedures set out in Articles 6 and 7 shall apply mutatis mutandis, subject to the following modifications:

(a) as part of the notification referred to in Article 6(1) or the comments referred to in Articles 6(2) and 7(1), a Member
State may indicate whether it considers that a foreign direct investment is likely to affect projects and programmes
of Union interest;

(b) the opinion of the Commission shall be sent to the other Member States;

(c) the Member State where the foreign direct investment is planned or has been completed shall take utmost account
of the Commission's opinion and provide an explanation to the Commission if its opinion is not followed.

3. For the purpose of this Article, projects or programmes of Union interest shall include those projects and
programmes which involve a substantial amount or a significant share of Union funding, or which are covered by Union
law regarding critical infrastructure, critical technologies or critical inputs which are essential for security or public
order. The list of projects or programmes of Union interest is set out in the Annex.

4. The Commission shall adopt delegated acts in accordance with Article 16 to amend the list of projects and
programmes of Union interest.

Article 9

Information requirements

1. Member States shall ensure that the information notified pursuant to Article 6(1) or requested by the Commission
and other Member States pursuant to Articles 6(6) and 7(5) is made available to the Commission and the requesting
Member States without undue delay.

2. The information referred to in paragraph 1 shall include:

(a) the ownership structure of the foreign investor and of the undertaking in which the foreign direct investment is
planned or has been completed, including information on the ultimate investor and participation in the capital;

(b) the approximate value of the foreign direct investment;

(c) the products, services and business operations of the foreign investor and of the undertaking in which the foreign
direct investment is planned or has been completed;

(d) the Member States in which the foreign investor and the undertaking in which the foreign direct investment is
planned or has been completed conduct relevant business operations;

(e) the funding of the investment and its source, on the basis of the best information available to the Member State;

(f) the date when the foreign direct investment is planned to be completed or has been completed.

3. Member States shall endeavour to provide any information additional to that referred to in paragraphs 1 and 2, if
available, to requesting Member States and to the Commission without undue delay.
21.3.2019 EN Official Journal of the European Union L 79 I/11

4. The Member State where the foreign direct investment is planned or has been completed may request the foreign
investor or the undertaking in which the foreign direct investment is planned or has been completed to provide the
information referred to in paragraph 2. The foreign investor or the undertaking concerned shall provide the information
requested without undue delay.

5. A Member State shall notify the Commission and the other Member States concerned without delay, if, in
exceptional circumstances, it is unable, despite its best efforts, to obtain the information referred to in paragraph 1. In
the notification, that Member State shall duly justify the reasons for not providing such information and explain the best
efforts undertaken to obtain the information requested, including a request pursuant to paragraph 4.

If no information is provided, any comment issued by another Member State or any opinion issued by the Commission
may be based on the information available to them.

Article 10

Confidentiality of information transmitted

1. Information received as a result of the application of this Regulation shall be used only for the purpose for which
it was requested.

2. Member States and the Commission shall ensure the protection of confidential information acquired in application
of this Regulation in accordance with Union and the respective national law.

3. Member States and the Commission shall ensure that classified information provided or exchanged under this
Regulation is not downgraded or declassified without the prior written consent of the originator.

Article 11

Contact points

1. Each Member State and the Commission shall establish a contact point for the implementation of this Regulation.
Member States and the Commission shall involve those contact points on all issues relating to the implementation of
this Regulation.

2. A secure and encrypted system shall be provided by the Commission to support direct cooperation and exchange
of information between the contact points.

Article 12

Group of experts on the screening of foreign direct investments into the European Union

The group of experts on the screening of foreign direct investments into the European Union providing advice and
expertise to the Commission shall continue to discuss issues relating to the screening of foreign direct investments, share
best practices and lessons learned, and exchange views on trends and issues of common concern relating to foreign
direct investments. The Commission shall also consider seeking the advice of that group on systemic issues relating to
the implementation of this Regulation.

The discussions in that group shall be kept confidential.

Article 13

International Cooperation

Member States and the Commission may cooperate with the responsible authorities of third countries on issues relating
to the screening of foreign direct investments on grounds of security and public order.

Article 14

Processing of personal data

1. Any processing of personal data pursuant to this Regulation shall be carried out in accordance with Regulation
(EU) 2016/679 and Regulation (EU) 2018/1725 and only in so far as it is necessary for the screening of foreign direct
investments by Member States and for ensuring the effectiveness of the cooperation provided for in this Regulation.
L 79 I/12 EN Official Journal of the European Union 21.3.2019

2. Personal data related to the implementation of this Regulation shall be kept only for the time necessary to achieve
the purposes for which they were collected.

Article 15

Evaluation

1. By 12 October 2023 and every five years thereafter, the Commission shall evaluate the functioning and
effectiveness of this Regulation and present a report to the European Parliament and to the Council. Member States shall
be involved in this exercise and if necessary provide the Commission with additional information for the preparation of
that report.

2. Where the report recommends amendments to this Regulation, it may be accompanied by an appropriate
legislative proposal.

Article 16

Exercise of the delegation

1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this
Article.

2. The power to adopt delegated acts referred to in Article 8(4) shall be conferred on the Commission for an indeter­
minate period of time from 10 April 2019.

3. The delegation of power referred to in Article 8(4) may be revoked at any time by the European Parliament or by
the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take
effect the day following the publication of the decision in the Official Journal of the European Union or at a later date
specified therein. It shall not affect the validity of any delegated acts already in force.

4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in
accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and
to the Council.

6. A delegated act adopted pursuant to Article 8(4) shall enter into force only if no objection has been expressed
either by the European Parliament or the Council within a period of two months of notification of that act to the
European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council
have both informed the Commission that they will not object. That period shall be extended by two months at the
initiative of the European Parliament or of the Council.

Article 17

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the
European Union.

This Regulation shall apply from 11 October 2020.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 19 March 2019.

For the European Parliament For the Council

The President The President
A. TAJANI G. CIAMBA
21.3.2019 EN Official Journal of the European Union L 79 I/13

ANNEX

List of projects or programmes of Union interest referred to in Article 8(3)

1. European GNSS programmes (Galileo & EGNOS):

Regulation (EU) No 1285/2013 of the European Parliament and of the Council of 11 December 2013 on the
implementation and exploitation of the European satellite navigation systems and repealing the Council Regulation
(EC) No 876/2002 and Regulation (EC) No 683/2008 of the European Parliament and of the Council (OJ L 347,
20.12.2013, p. 1).

2. Copernicus:

Regulation (EU) No 377/2014 of the European Parliament and of the Council of 3 April 2014 establishing the
Copernicus Programme and repealing Regulation (EU) No 911/2010 (OJ L 122, 24.4.2014, p. 44).

3. Horizon 2020:

Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing
Horizon 2020 – the Framework Programme for Research and Innovation (2014-2020) and repealing Decision
No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104), including actions therein relating to Key Enabling Technologies
such as artificial intelligence, robotics, semiconductors and cybersecurity.

4. Trans-European Networks for Transport (TEN-T):

Regulation (EU) No 1315/2013 of the European Parliament and of the Council of 11 December 2013 on Union
guidelines for the development of the trans-European transport network and repealing Decision No 661/2010/EU
(OJ L 348, 20.12.2013, p. 1).

5. Trans-European Networks for Energy (TEN-E):

Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17 April 2013 on guidelines for
trans-European energy infrastructure and repealing Decision No 1364/2006/EC and amending Regulations (EC)
No 713/2009, (EC) No 714/2009 and (EC) No 715/2009 (OJ L 115, 25.4.2013, p. 39).

6. Trans-European Networks for Telecommunications:

Regulation (EU) No 283/2014 of the European Parliament and of the Council of 11 March 2014 on guidelines for
trans-European networks in the area of telecommunications infrastructure and repealing Decision No 1336/97/EC
(OJ L 86, 21.3.2014, p. 14).

7. European Defence Industrial Development Programme:

Regulation (EU) 2018/1092 of the European Parliament and of the Council of 18 July 2018 establishing the
European Defence Industrial Development Programme aiming at supporting the competitiveness and innovation
capacity of the Union's defence industry (OJ L 200, 7.8.2018, p. 30).

8. Permanent structured cooperation (PESCO):

Council Decision (CFSP) 2018/340 of 6 March 2018 establishing the list of projects to be developed under PESCO
(OJ L 65, 8.3.2018, p. 24).
L 79 I/14 EN Official Journal of the European Union 21.3.2019

Commission statement

Following the request of the European Parliament, the European Commission undertakes to:
— share with the European Parliament the standardised forms which the European Commission will prepare to
facilitate compliance of Member States with the annual reporting obligations under Article 5 of the Regulation once
they are finalised, and
— share with the European Parliament such standardised forms each year, in parallel to presenting the annual report to
the European Parliament and to the Council, in accordance with Article 5(3) of the Regulation.