This document aims to provide a thorough examination of the European Union’s approach to Foreign Direct Investment (FDI) screening, with a particular focus on presenting the diverse perspectives of EU institutions on the key topics involved. It highlights how the European Commission, the European Parliament, and the Council differ and converge on the objectives, scope, procedures, and powers related to FDI screening, thereby illustrating the ongoing political dialogue shaping the final regulatory framework.

The first section explains the driving forces behind the EU’s increasing emphasis on coordinated FDI screening. It identifies growing concerns over the potential risks that foreign investments may pose considering both the external geopolitical context and the internal difficulties. Following this, the document presents a detailed timeline outlining the development of the FDI screening initiative and the stances of the EU institutions.

The core of the document examines the main issues related to FDI screening and the differing views between the institutions that will be discussed during the trilogue, reflecting broader debates between national sovereignty and EU-level coordination within this framework. It begins by defining the scope of national screening mechanisms, clarifying which types of investments and sectors are subject to review. It then explores the procedural aspects of these mechanisms. The attention is then to the criteria used for risk assessment.

The document also discusses the rules for multi-jurisdictional transactions, where investments span multiple Member States. Then, central to the EU’s approach is the cooperation mechanism established to facilitate information sharing and joint assessments among Member States. Finally, the willingness of the Parliament to expand the role and powers of the European Commission is examined.

In conclusion, the document summarises the balance that must be struck between protecting security and public order and preserving the EU’s attractiveness to foreign investors, highlighting ongoing debates among institutions.

At the end, a table summarises the positions of various EU institutions on the FDI screening proposal, providing insight into the political dynamics shaping the final regulatory framework.

BRUSSELS AIMS FOR THE STARS: THE EU SPACE ACT UNVEILED

On 25 June 2025, the European Commission presented the proposal for a regulation known as the EU Space Act, taking the first concrete step toward creating a unified internal market for space activities.

The initiative seeks to replace the current patchwork of national laws—comprising thirteen different regulatory systems—with a single European legal framework. The goal is to boost the EU’s global competitiveness, particularly in comparison with the United States and China.

The proposed Regulation is built on three core pillars: security, resilience, and sustainability.

• Security: The Act introduces mandatory satellite tracking and disposal plans, addressing the growing issue of orbital pollution. Equally important are the new obligations concerning the use of collision avoidance services. For businesses, this means greater operational predictability, fewer in-orbit incidents, and significantly lower costs from corrective manoeuvres.
• Resilience: The Act requires risk assessments across the full lifecycle of space missions, with strong emphasis on cybersecurity and electronic interference. This marks a regulatory breakthrough aimed at preventing blackouts and malfunctions while tackling a rising threat—space-related cyberattacks, which cost the industry around €1 billion annually. Additional measures are introduced to ensure the continuity of critical data services in sectors such as telecommunications, defence, and transport.
• Sustainability: The third pillar establishes a set of rules to promote low-impact technologies and extend satellite lifespans. The regulation mandates lifecycle assessments for all missions and foresees the creation of shared databases to track and reduce environmental impact. Emerging technologies—such as in-orbit servicing and debris removal—are also incentivised. The objective is twofold: lowering costs while making missions more efficient and sustainable.

In case of violations, companies may face fines of up to 2% of their global annual turnover or an amount equal to twice the profits gained or losses avoided through the breach. There are, however, exceptions. The regulation does not apply to satellites already in orbit, nor to those used exclusively for military or national security purposes.

The Act also addresses operations beyond EU borders. Non-European companies operating in the EU market must appoint a legal representative within the Union and comply with equivalent requirements—unless their country of origin is recognised as offering comparable oversight (as is the case with the United States).

CONTEXT

The strategic importance of the space sector for the EU has been long recognised, as highlighted in both the Letta and Draghi reports. This direction has since been reaffirmed in the Competitiveness Compass and the Commission’s 2025 Work Programme.

The need for such a measure also emerged in two joint communications: the EU Approach for Space Traffic Management and the EU Space Strategy for Security and Defence. These communications responded to Member States’ calls for a coherent, stable, and harmonised regulatory framework capable of fostering a true internal market for space—one that can drive innovation and investment.

Pressure for EU-level action has come not only from Member States, but also from real-world developments in orbit. In recent years, there has been an exponential rise in so-called "constellations" of low-orbit satellites, led by Elon Musk’s Starlink. These systems offer faster, more reliable connections—but at the cost of increasing space congestion. With over 10,000 satellites already in orbit and 50,000 more expected by 2030, the volume of debris is also growing rapidly. This has prompted the EU’s clear objective: curb the surge in space debris and tighten oversight of sector operators before the situation becomes unmanageable.

Yet the issue is not just technical. Space is now both congested and contested—prompting the EU to adopt a firmer regulatory stance. For years, the United States and China have competed to shape global space governance, rallying blocs of aligned countries. The US spearheaded the Artemis Accords—a set of non-binding principles for peaceful cooperation in space exploration, endorsed by most EU Member States. Meanwhile, China has proposed its own framework for peaceful space use, aiming to build a parallel alliance of partner countries.

Adding to the geopolitical complexity are Europe’s own vulnerabilities, exposed during the war in Ukraine. Elon Musk’s satellite network played a crucial role in maintaining communications during the conflict, highlighting the risks of relying on non-European private infrastructure. This dependence triggered alarm bells in Brussels, reinforcing the need for the EU to strengthen its strategic autonomy in space.

In short, the confluence of rapid sectoral developments, intensifying global competition, and fragmented national regulations has made the EU’s initiative both timely and necessary. By establishing its own comprehensive framework, the Union is seeking not only to regulate its internal market, but also to shape the rules of the game on the global stage.

Backing this ambition are strong political signals. French President Emmanuel Macron, among others, has called for significantly increased investment in the space sector, urging the next EU budget to allocate at least €60 billion to space policy. Underscoring France’s determination, the government has also increased its stake in Eutelsat—seen as the most credible European alternative to Starlink.

ITALY TAKES OFF

On the same day the EU Space Act was presented, Italy enacted Law No. 89 of 13 June 2025, introducing—for the first time—a comprehensive national framework governing outer space and both public and private space activities.

Entitled "Provisions on the Space Economy," the law places Italy among the few countries worldwide with a dedicated space law. It addresses geopolitical, technological, and environmental challenges with a bold vision and advanced legal instruments.

The text clearly defines space activities and requires prior authorisation for all operators, including Italian entities active abroad. It sets firm requirements on national security, cybersecurity, environmental sustainability, debris management, and insurance coverage. Implementation and coordination are entrusted to a structured institutional setup involving the Italian Space Agency (ASI), COMINT, and the Prime Minister’s Office.

The law also governs the registration of space objects, sets liability rules for operators and the state, and establishes procedures for revoking or suspending authorisations on security grounds. Notably, it includes dedicated rules for public procurement in the space sector, aligning with the Public Contracts Code and opening access to innovative start-ups and SMEs.

Through this dual legislative push, both Italy and the EU are positioning themselves as key players in the new space era. The result: tangible new opportunities for Italian and European businesses, now able to operate within a clearer, more stable, and harmonised legal environment.

The Institute for European Policy Making @ Bocconi University (IEP@BU) is glad to invite you to attend an informal Workshop on:

RULES THAT EMPOWER - Turning EU Digital Regulation into a Catalyst for Innovation

that will take place on Wednesday, July 2nd 2025 from 17.00 to 18.30, at Grimaldi Alliance – GA (Bd Charlemagne 23, 1000 Bruxelles).

The starting point for the discussion is the IEP@BU Report, by a group of researchers from Bocconi University and Toulouse School of Economics under the coordination of prof. Francesco Decarolis.

The digital landscape of Europe is currently undergoing significant technological and regulatory transformations. The primary challenges for the European Union lie in promoting an EU-based tech sector while managing major global trends such as the influence of dominant platforms, the rapid development of artificial intelligence, the advent of decentralized business networks, and the spread of dual-use technologies. The full report is available on the IEP@BU website

We kindly ask you to confirm your participation in the Workshop by June 25th, 2025 at this link.

The workshop is organized in collaboration with Grimaldi Alliance.

At the end of the workshop, you are warmly invited to attend an informal networking cocktail at Grimaldi Alliance (GA) as our welcome guest.

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