Foreign direct investment (FDI) notifications submitted to the European Commission climbed 40% year on year to 667 in 2025, according to the sixth annual report on the screening of FDI into the European Union (EU).
The report revealed the largest annual rise since the EU screening cooperation mechanism began, rising from 477 submissions in 2024.
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Seven member states – Austria, France, Germany, Ireland, Italy, Lithuania, and Spain – accounted for 86% of all notifications, with Austria, France, Italy, and Spain alone representing 65%.
At the national level, member states handled 4,773 authorisation requests and ex officio cases, formally screening 38%.
Among formally reviewed transactions reaching a final decision, 87% secured unconditional clearance, 9% were approved with conditions or mitigating measures, 3% were withdrawn, and approximately 1% were blocked.
The Commission completed 88% of assessments within the 15-calendar-day Phase 1 preliminary stage, down from 92% in 2024, whilst Phase 2 in-depth investigations rose from 8% to 12%.
Formal Commission opinions were issued in under 2% of notified transactions.
Manufacturing remained the most notified sector at 27% of all cases and represented 53% of Phase 2 reviews, followed by information and communication technologies at 19% across both stages.
Within manufacturing Phase 2 files, target participation in critical technologies triggered 37% of reviews, led by defence-related technologies at 31% and aerospace at 28%.
The US remained the leading investor origin at 33% of notifications, followed by the UK at 9%, China including Hong Kong at 7%, the UAE at 5%, and Canada and Japan at 4% each.
Transactions below €500m ($562.5m) represented 66% of filings, while multi-jurisdiction cases expanded to 27%.
By late 2025, all 27 member states maintained screening frameworks.
The European Parliament and the Council formally adopted the new Foreign Investment Screening Regulation on 17 June 2026, which entered into force on 26 July 2026 and takes effect on 17 January 2028.
