The Parliamentary Finance Committee will resume its work on Monday, 1 September, following the summer break, with the examination of two important bills.
According to the agenda of the House Finance Committee, Monday’s session will continue the examination of the bill concerning the privatisation of the Cyprus Stock Exchange (CSE), while also beginning discussion on the bill regarding the control of foreign investments — specifically, the creation of a Foreign Direct Investment (FDI) Screening Mechanism.
The latter bill was submitted to the House only in July and aims to establish legislation for the implementation of the European Union regulation titled: “Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union.” Cyprus remains one of the few EU countries without an established national screening mechanism.
More specifically, the bill outlines the conditions under which notification and approval of a proposed foreign direct investment is required, the criteria and factors that may be considered during the screening of a foreign direct investment, the screening procedure itself, the type of information required, and the executive powers of the competent authority.
As the Director General of the Ministry of Finance, Andreas Zachariadis, told Economy Today: “Our goal is for the Republic of Cyprus to have a fully operational National Foreign Investment Screening Mechanism in place by the time it assumes the Presidency of the EU Council in the first half of 2026.”
He also stressed: “The need for an effective mechanism has become urgent due to international developments, geopolitical shifts, and new forms of threats related to economic security.”
Regarding the nature of the mechanism, he pointed out that it “is not intended to obstruct investment, but to establish a framework of trust and security,” adding that “the regulation is not aimed against the free movement of capital, but is a necessary tool to safeguard the public interest.”
As for the bill on the privatisation of the CSE, the Finance Committee’s agenda indicates that a revised text has been submitted for further discussion. It is recalled that during the bill’s initial review, concerns were raised regarding the safeguarding of stock exchange personnel. Furthermore, a package of new legislative measures related to the privatisation of the CSE was recently put up for public consultation. These aim to ensure the smooth operation of the stock market in the Republic of Cyprus, as the current Cyprus Securities and Stock Exchange Law will be repealed.
Feature photo source: B Samrish
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