Romania's Competition Council drafted a bill for establishing a body charged with screening new and existing foreign direct investments from out of the European Union in areas with an impact on national security, in line with the European Commission's guidelines.

The Screening Commission for Foreign Direct Investment (CEISD) will review all foreign direct investment plans and ban those that pose potential threats, Adevarul reported.

CEISD will also be entitled to compel foreign owners from third countries operating existing businesses that pose potential threats to sell their assets.

The bill drafted by the Competition Council transposes the European regulations, adopted last spring, under the EU Council's Romanian presidency, which enters into force on October 11, 2020.

CEISD will include representatives of the prime minister's office, Presidency, Ministry of Economy, Energy and Business Environment, Ministry of Finance, Ministry of Foreign Affairs, Ministry of National Defense, Ministry of Justice, Ministry of Internal Affairs, Romanian Intelligence Service (SRI), Foreign Intelligence Service (SIE), and Competition Council.

CEISD will screen and authorize foreign direct investment only in certain areas of activity related to national security. If the CEISD considers that there are major security risks or if the CEISD members' votes do not meet the majority required to issue the consent, the opinion of the Supreme Council of National Defense will be requested.

The CSAT will then send its proposal to the Government.

The normative act also provides requesting the approval of the Cyber ​​Security Operational Council (COSC), in situation where foreign investments target or involve IT&C technologies that may affect or harm Romania's security or public order.

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andrei@romania-insider.com