On May 6, 2026, AmCham Germany and Covington & Burling LLP jointly hosted an Expert Webinar on "EU’s New World: How New EU Foreign Investment Regulation Will Impact Firms Looking to Invest in the EU."
This Expert Webinar zoomed in on the EU's recently agreed text of a new foreign investment screening regulation (the “New FIR Regulation”) to revamp its framework for foreign investments review. The New FIR Regulation comes in to address some of the challenges arising from the intensifying geopolitical tensions. To further tackle those, shortly thereafter, on 4 March 2026, the European Commission unveiled its draft Industrial Accelerator Act (the “IAA Proposal”), in a bid to “boost manufacturing, grow businesses, and create jobs” in the EU. The IAA Proposal seeks to put in place an additional, potentially parallel, foreign investment review (“FIR”) mechanism for investments in key strategic sectors, including electric vehicles.
The webinar discussed the practical implications of these new developments for firms looking to invest in the EU.
Key Takeaways:
- Additional layer of review. The IAA Proposal introduces a separate Commission‑driven review process with its own phases—raising execution risk where both the New FIR Regulation and the proposed IAA regimes apply to the same transaction. This would come on top of potential merger control and foreign subsidies screening, thereby increasing cumulative regulatory exposure in cross‑border deals.
- Transaction types. EU investments control could become both broader and more layered. More transaction types and structures will require filings: under the New FIR Regulation, minority and indirect investments (including certain intra‑EU investments) may require clearance, while the IAA Proposal would also capture certain high‑value brownfield, greenfield and asset deals.
- Sector focus. The New FIR Regulation introduces mandatory screening in six sector blocs: defence and dual-use, critical infrastructure, strategic raw materials, deep technology, voting systems, and systemic financial services. The IAA Proposal zeroes in on manufacturing in so-called “emerging strategic sectors”: batteries, EVs, solar, and critical raw materials.
- Timelines. FIR under the New FIR Regulation will have suspensory effects and will involve multi‑country coordination and cooperation. It also requires investors to endeavour to file in all relevant screening Member States on the same day. Below-thresholds investments may face some increasing risk of call-ins.
- German FIR. These legislative developments at the European level will also have an impact on Germany’s investment screening regime, which is also undergoing reform. It remains to be seen how the German government will reflect the screening standard of the New FIR Regulation in its consolidated new FIR screening act, a draft of which is expected to be published soon.
- Deal certainty. Deal documentation should address regulatory overlap and change. Conditions should allocate FIR (and proposed IAA) risks carefully and consider “springing” or catch‑all clauses, particularly for deals with longer time between signing and closing.
- Deal planning. Given evolving definitions, call‑in powers, and political discretion under both regimes, investors need early FIR scoping, stakeholder mapping, and—where relevant—advance engagement with specialised counsel to mitigate the risk of delays, conditions or prohibitions at a late stage in the deal lifecycle.
Expert Speakers:
- Sibel Yilmaz is a Partner and Co-heads Covington’s FIR Practice, based in Brussels. Sibel advises on all aspects of foreign investment laws within the EU, the Nordics and internationally. She has particular expertise coordinating multi-jurisdictional strategies in global deals and also advises on the application of the FSR.
- Anna Lubberger is an Of Counsel in Covington’s Frankfurt office. Anna advises German, European and global clients, notably in the financial, consumer goods, chemical, pharmaceutical, automotive, digital and sports industries. She has extensive experience in coordinating complex EU and international deals and advises clients on all aspects of merger control and FIR. She regularly represents clients before the European Commission and German authorities.
- Laurie-Anne Grelier is an Of Counsel based in Covington’s Seoul office. Laurie-Anne advises Asian and other global clients in the tech, green energy and other sectors on the competition and FIR aspects of their activities and investments in Europe, as well as on tech regulations and the FSR. She regularly represents them before EU and national agencies.
- Romain Girard is an Associate based in Covington’s Brussels office. Romain advises on complex FIR regulatory matters. He has extensive experience advising on all aspects of EU, UK and international FIR matters and representing clients before the European Commission, as well as UK and French authorities. He is dual-qualified in France and the UK.
