Governments worldwide are striving to balance the economic advantages of foreign investment with the imperative to safeguard national security. While FDI brings jobs, innovation, and enhanced competitiveness, it can also introduce risks in strategic sectors like defence, energy, and digital infrastructure. Effective screening frameworks must therefore promote transparency, legal certainty, and administrative efficiency, enabling governments to assess threats without deterring legitimate investment.

Recent reforms across major economies reflect a shift toward a broader conception of security. In the U.S, the America First Executive Order issued under the Trump administration in February 2025 intensified FDI scrutiny, particularly around foreign influence in critical infrastructure, emerging technologies, and defense supply chains. In the EU, the draft Glucksmann Security Package aims to harmonise screening practices across Member States and enhance protections for sensitive sectors, marking a push toward greater strategic autonomy in response to global geopolitical shifts.

Countries across Europe are increasingly adopting more structured and strategic approaches to FDI screening, particularly in sectors tied to defence and critical technologies. Tools such as pre-notification procedures, accelerated consultations, and binding investor commitments are being used to provide both clarity for investors and safeguards for national interests. These mechanisms help prevent last-minute deal disruptions and ensure that foreign investments align with long-term security and industrial policy goals. As recent high-profile cases across multiple jurisdictions have shown, proactive engagement between governments and investors is becoming essential to navigate the complex intersection of economic openness and strategic autonomy.