Portugal reviews foreign investment screening overhaul
Portugal is weighing how to implement new EU rules that will make prior approval mandatory for foreign investment in sensitive sectors by 2028.
Portugal’s government is carrying out an internal review to decide how to implement a new EU foreign direct investment screening regime, which will require prior notification and state approval for deals in sensitive sectors.
The Foreign Affairs Ministry told ECO that the review is focused on the institutional model, the division of responsibilities between authorities and the legislative and administrative changes needed to apply the new regulation effectively. The updated EU framework, adopted by the Council on June 8, will apply 18 months after entering into force and makes national screening mechanisms mandatory across the bloc.
Under the new rules, member states must at least require mandatory prior filing for investments in areas such as defence and dual-use goods, artificial intelligence and other hypercritical technologies, quantum and semiconductors, critical raw materials, critical infrastructure including energy, transport and digital networks, electoral infrastructure and certain financial system entities. The regulation also introduces a suspensive effect, meaning covered transactions will need state clearance before completion.
PLMJ partner Martim Valente told ECO the main change is the wider scope of sectors covered. He said Portugal’s current law is focused mainly on telecommunications, energy and transport, while the new regime will extend screening to a much broader set of industries. He also said the new approval requirement should not make Portugal less attractive for foreign direct investment, arguing that investors already face similar systems in other EU countries.
One open question is which Portuguese body will run the system. Asked by ECO whether the Portuguese competition authority could take on the role, its president Nuno Cunha Rodrigues rejected that option, saying foreign investment screening in sensitive sectors involves national security, defence and strategic autonomy issues that fall outside the authority’s core competition mandate.
Originally published at Eco.pt
