The National Assembly has unanimously endorsed a bill to extend a mechanism whereby the government can screen potentially risky foreign direct investment (FDI). However, investors from EU countries will now no longer be deemed foreign.

The FDI notification and screening mechanism as set down in the EU law has been transposed in Slovenia in one of the Covid emergency laws, which will expire at the end of June.

With the amendments passed on 9 June, the mechanism is now being included in the Investment Promotion Act.

If a foreign investor wants to acquire a stake of at least 10% in a Slovenian company whose line of business is considered sensitive, the investor must notify the Economy Ministry, which reviews the application.

The amendments somewhat change the mechanism to make the procedures faster, better targetted and more effective, and allow the country to remain open to FDI, Economy Ministry State Secretary Matevž Frangež said.

The term foreign investor from now on applies only to third-country investors and no longer to investors from EU countries.

The definition of FDI is being changed to increase traceability and to make it possible to see the true ownership structure of the foreign investor.

The set of legal transactions subject to notification is being reduced and rules are being set down for the notification commission.

The amendments also introduce substantive measures on the basis of which applications are assessed, and more detailed conditions for implementation when a particular FDI is approved under certain terms.

The period for the assessment of investments is being shortened and provisions are being introduced for cases where foreign investors do not abide by the terms or restrictions set down.

Based on the amendments, the Economy Ministry will set up a contact point for FDI screening and for the exchange of information with other EU countries and the European Commission.

Information on FDI implemented in Slovenia by third-country investors will have to be collected and shared with other EU countries or bodies concerned.