Regulation (EU) 2019/452 and the Foreign Direct Investment Screening Regime in Romania

Abstract

Since 11 October 2020, Regulation (EU) 2019/452 of the European Parliament and of the Council establishing a framework for the screening of foreign direct investment into the EU has been applied in the Member States of the European Union. Although the Regulation is automatically and uniformly applicable in all EU countries upon its entry into force – thus, no transposition into national law is required –, Romania is preparing to adopt legislation to regulate FDI due diligence at national level in line with Regulation (EU) 2019/452, in the absence of an adequate legal framework and for the purpose of implementing the Regulation. In this study, we intend to examine the current legal framework in Romania on FDI and the draft legislation mentioned above, which aims to establish a workable screening mechanism for FDI into Romania.