The EU has reached a provisional agreement to update rules on screening foreign investments in sensitive sectors such as defense, semiconductors, and financial services to prevent security risks. Enhanced cooperation among Member States and harmonization of procedures aim to streamline processes and make the EU more attractive for investment, while ensuring that foreign investments bring added value and do not pose security risks. The regulation will mandate screening for all member states in certain sectors and cover investments within the EU with non-EU ownership. The European Commission has committed to further initiatives on foreign investments in specific strategic sectors, aiming to strike a balance between attracting investment and protecting the EU's economic security and public order.