Chapter 4, Article 19 · Regulation (EU) 2026/1386

Contents

Article 19Determination of likely negative effect on security or public order#

1.When assessing whether a foreign investment is likely to negatively affect security or public order, for the purposes of adopting a screening decision, or providing comments or issuing an opinion, the Member States and the Commission shall in particular consider its potential effects on:

(a)a project or programme of Union interest, as listed in Annex II;

(b)the availability, including outside the Union as a result of the foreign investment, of critical technologies, in particular those referred to in Annex III, and the protection and availability of intellectual property or other intangible assets;

(c)the security, integrity, resilience and functioning of a critical entity or critical infrastructure within the meaning of Article 2 of Directive (EU) 2022/2557, including the land and property necessary for the operation of such infrastructure, as well as those of entities falling within the scope of Directive (EU) 2022/2555 of the European Parliament and of the Council^note, taking into account the relevant Union-level coordinated security risk assessments carried out in accordance with Article 22 of Directive (EU) 2022/2555;

(d)the continuity of supply of critical inputs, including services;

(e)the protection of sensitive information, including personal data as defined in Article 4, point (1), of Regulation (EU) 2016/679, in particular with regard to the ability of the foreign investor to access, control, and otherwise process such information;

(f)the freedom and pluralism of the media, including online and social media platforms that can be used for large-scale disinformation or criminal activities;

(g)the protection of electoral processes;

(h)the protection of public health, including the provision and availability of the critical medicines listed in Annex IV;

(i)the protection of food security, including farming when the Union target possesses or operates more than 10000 ha of farmland;

(j)the security of military facilities and other sensitive public facilities in the immediate geographical proximity of the Union target.

2.When assessing whether a foreign investment is likely to negatively affect security or public order, for the purposes of adopting a screening decision, providing comments or issuing an opinion, the Member States and the Commission shall also take into account information related to the foreign investor, including:

(a)whether the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of the foreign investor:

(i)is likely to pursue a third country’s policy objectives, including by using the investment to coerce a Member State or the Union to prevent or obtain the cessation, modification or adoption of a particular act;

(ii)is likely to facilitate the development of a third country’s military capabilities;

(iii)is likely to use the foreign investment to support internal repression in a third country or the commission of serious violations of human rights or international humanitarian law, in particular when the Union target develops or produces items included in Annex I to Regulation (EU) 2021/821 or items included in Annex I to Directive 2009/43/EC;

(iv)has made a foreign investment that was previously screened by a Member State and not authorised or only authorised subject to mitigating measures which were significantly or repeatedly not complied with; to determine that, Member States and the Commission shall rely on information available to them, including the information contained in the secure database set up pursuant to Article 18(6) and information provided by the foreign investor on that matter;

(v)has already been involved in activities negatively affecting the security or public order in a Member State; or

(vi)has engaged in illegal or criminal activities, including the circumvention of Union restrictive measures adopted pursuant to Article 29 TEU and Article 215 TFEU;

(b)where applicable, the reasons for subjecting the foreign investor, a natural person or entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by or acting on behalf or at the direction of the foreign investor to restrictive measures adopted pursuant to Article 29 TEU and Article 215 TFEU;

(c)whether the foreign investor is established in a third country identified as having significant strategic deficiencies in its national regime on anti-money laundering and on countering the financing of terrorism in accordance with Article 29 of Regulation (EU) 2024/1624 of the European Parliament and of the Council^note;

(d)whether the foreign investor is subject to the law of a third country that imposes obligations on natural or legal persons to share information for intelligence purposes without due process or oversight mechanisms;

(e)whether the foreign investor has an opaque ownership structure.

3.The Commission shall make available a risk evaluation form that may be used by Member States to assess the elements referred to in paragraphs 1 and 2.

4.The Commission may carry out risk assessments relating to specific sectors, critical technologies, foreign investors or Union undertakings. Those risk assessments shall be made available in the secure database set up pursuant to Article 18(6) and may be taken into account by Member States when determining whether a foreign investment is likely to negatively affect security or public order.