The Government has agreed to draft legislation which will give effect to an EU regulation to screen foreign direct investment coming into Ireland.

The Investment Screening Bill 2020 will give full effect to EU Regulation 2019/452, which allows all member states to have a mechanism in place to screen foreign investment for any risks it may pose to security or public order in the host member state.

Announcing the move, Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar said Ireland had a strong reputation for welcoming foreign direct investment, and that would continue.

Strategic assets

“However, while we welcome investment, it is important to be on our guard against forces that threaten our security and strategic assets falling into the hands of unfriendly foreign governments,” he added.

The proposed legislation will allow EU countries and the European Commission to share information and raise any concerns about a company seeking to invest in a country.

Minister Varadkar described the structures to be put in place as “proportionate”.

Once enacted, the bill will allow the minister to “assess, investigate, authorise, condition, prohibit or unwind” foreign investments from outside of the EU, based on a range of security and public order criteria. No such investment screening mechanism currently exists in Ireland.

The bill will be sent forward for pre-legislative scrutiny by the Oireachtas in the autumn.