Brussels Tightens FDI Screening as EU Investment Falls 7% Amid Overregulation Warnings
Updated
Updated · Semafor · Jun 18
Brussels Tightens FDI Screening as EU Investment Falls 7% Amid Overregulation Warnings
2 articles · Updated · Semafor · Jun 18
Summary
March changes tightened Brussels' screening of foreign direct investment, adding another regulatory layer even as business leaders warn the EU is becoming harder to invest in.
A 7% drop in EU foreign direct investment in 2025, according to EY, coincided with a rising share of companies citing overregulation as a business risk.
ArcelorMittal's executive chairman said emissions trading rules are hurting energy-intensive industries, while Saudi Arabia's Public Investment Fund governor said the regulatory climate is deterring more international capital.
Those complaints echo Mario Draghi's 2024 call for Europe to cut legislative restrictions on business, underscoring a widening gap between competitiveness warnings and Brussels' policy direction.