Legal Update

EU Proposal Industrial Accelerator Act (IAA) — Complementary, Special Value Conditions-Based FDI Regime

Legal Alert | 6 March 2026

Competition

The European Commission's proposed Industrial Accelerator Act adds a new industrial-policy layer that may affect how major non‑EU investments are assessed in strategic sectors.

EU Proposal Industrial Accelerator Act (IAA)

On 4 March 2026, the EC published the Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing a framework of measures for the acceleration of industrial capacity and decarbonisation in strategic sectors and amending Regulations (EU) 2018/1724, (EU) 2024/1735 and (EU) 2024/3110  (Industrial Accelerator Act Proposal or IAA Proposal). The IAA Proposal will not formally modify the EU FDI screening regime (Regulation 2019/254), but will add a new industrial layer in the screening of certain investments.

While FDI screening has traditionally focused on security and public order, the IAA Proposal incorporates industrial resilience into the equation, being a sector‑specific control regime focused on industrial outcomes (jobs, tech transfer, supply‑chain depth), Access to the EU market will depend not only on who invests, but also on what industrial value that investment creates in Europe. Capital alone won't clear investments—fulfilment of verifiable, long‑term special value conditions is the new price of admission. The EU remains formally open to FDI, but the IAA Proposal signals a move from pure openness to conditional openness.

For countries like Romania, where FDI screening is already broad, the interaction between investment screening and EU industrial policy will become increasingly relevant in sectors such as energy, technology.

The IAA proposal applies to non‑EU FDI ≥ €100m that confers control (≥30% equity/votes or equivalent rights) over an EU target/asset in batteries, EVs/fuel‑cell vehicles, solar PV, and critical raw materials, where the investor's country holds >40% of global manufacturing capacity in the relevant sector.

De facto, approval will mean compliance with special value conditions (4‑of‑6 test) – National Investment Authorities, which shall be designated by each Member State, may approve FDI only if at least 4 of 6 conditions are satisfied—with ≥50% EU workforce being mandatory among the four. Core conditions: 49% cap on foreign ownership; mandatory JV with EU partners (≤49% foreign stake); ≥50% EU workforce; IP/know‑how licensing to EU entities; ≥1% EU‑based R&D spend; ≥30% EU‑sourced inputs and a published EU value‑chain strategy.

The specific value‑creation conditions must be kept throughout the entire duration of the investment, subject to ongoing monitoring and reporting obligations. Non‑compliance may result in sanctions which shall be established by the Investment Authority.

Standstill obligation applies: transactions cannot be implemented prior to approval. Failure to notify may trigger sanctions which shall be set by each Investment Authority, with minimum penalties of at least 5% of the average daily aggregate turnover of the foreign investor undertaking.

NB – The EC will be actively involved in the FDI screening under IAA, working closing with National Investment Authorities and even reviewing itself FDI investments in certain conditions.

Deeper dive => more details available on PNSA blog

This document is intended for informational purposes only, does not represent legal advice and does not focus on particular cases.

For further information or analysis on specific matters, please contact Vanessa Nistor.