On September 16, 2026, European Commission President von der Leyen opened her annual State of the Union address with the warning that “[a] fight for industrial capacities is shaping global competition“. Her speech indicated how the European Commission intends to respond to concerns about European competitiveness and economic security. Those priorities already appear in reforms and proposals such as the Draft Merger Guidelines and the proposed Industrial Accelerator Act (“Draft IAA”), alongside broader changes to foreign investment screening across the EU. The address therefore offers a useful guide to the considerations likely to shape EU merger control, competition enforcement and Member State investment screening. This post distils the implications for investors and businesses active in the EU.
Key Points
- Competitiveness, resilience and economic security will shape EU merger control to some degree, as reflected in the Draft Merger Guidelines’ focus on scale, innovation and security of supply, as well as competition enforcement and foreign investment screening.
- Foreign investment policy will continue to scrutinise strategic sectors and technologies—including AI, semiconductors, critical minerals, energy and defence—while enabling partnerships that build capacity, diversify supply chains and strengthen resilience.
- Trusted international partnerships will increasingly shape foreign investment assessments, with greater weight on investors’ jurisdictions and strategic alignment with EU industrial policy.
- Climate change and AI are identified as “tipping points” driving regulatory focus across sectors including energy and water infrastructure, agriculture and food, health, transport, advanced manufacturing, and defence and space.