On December 11, 2025, the EU Parliament and Council reached a political agreement for a New EU FDI Screening Regulation, which the European Parliament approved on May 19, 2026. The new regime now awaits the formal approval by the Council before its (anticipated) entry into force. Member States – including Ireland – will then have an 18-month transitional period to adapt their national screening laws to conform with the new framework, meaning the STCTA is likely to
undergo review before the expected compliance deadline in late 2027. Key changes in the New FDI Screening Regulation include: (i) a harmonized “Phase 1” review period of 45 calendar days from filing; (ii) a minimum mandatory scope of sectors subject to screening; (iii) explicit application to indirect foreign investments (i.e., investments by EU-based vehicles ultimately controlled by non-EU investors); and (iv) a strengthened cooperation mechanism among Member States.
Outlook for 2026 Now in its second year of operation, the STCTA has begun to generate a body of practice. The regime’s breadth, driven by its low financial threshold (€2 million) and its applicability to key technology sectors such as energy, telecommunication, digital infrastructure and pharmaceuticals, has meant that parties across multiple sectors have had to engage with the notification framework. Under the (anticipated) New EU FDI Screening Regulation, Ireland is likely to review the STCTA in light of EU harmonization efforts within an 18-month transitional period following entry into force, placing the likely compliance deadline in late 2027. It will also be important to monitor how some of the unusual aspects of Irish FDI regime are applied in the coming years, including consent notices and criminal penalties. Most other FDI regimes do not provide for one party to notify the authority on behalf of others, and most do not include criminal penalties. To date, no enforcement actions for breach of the standstill obligation are known to have been taken, though this position may evolve as the regime develops.
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