Regulation (EU) 2026/1386, which came into force on July 16, 2026, replaces the previous Regulation (EU) 2019/452 and fundamentally reshapes the EU's foreign direct investment (FDI) screening framework. The most significant change is the mandatory requirement for every member state to establish and maintain a national FDI screening mechanism, closing loopholes that previously allowed problematic investments through states without such systems. The regulation introduces a mandatory minimum scope for prior authorization, covering investments in dual-use items, military equipment, sensitive technologies like semiconductors and AI, critical infrastructure, strategic raw materials, and systemically important financial entities. Notably, electoral infrastructure is explicitly included, reflecting concerns about foreign influence on democratic processes.