European Union: European Commission released fifth annual report on screening of foreign direct investments, including AI and quantum technologies

On 14 October 2025, the European Commission released the fifth annual report on foreign direct investment (FDI) screening in the European Union (EU). The report applies to foreign investments that may raise security or public order concerns, with particular focus on critical technologies. The report found that in 2024, the Information and Communications Technology (ICT) sector accounted for 22% of all notified transactions (467 deals). Semiconductors represented 21% of critical technology cases requiring a detailed Phase 2 security review. Artificial intelligence and quantum technologies comprised part of the 26% categorised as "other critical technologies" in Phase 2 assessments. Member States handled 3,136 total cases, with 86% of formally screened investments authorised without conditions, 9% approved with conditions, and only 1% prohibited. By end-2024, 24 of 27 Member States had operational screening mechanisms.