Our work aims at empirically identify the determinants of FDI in the new EU Member States. The analysis focuses on the diagnosis of the relevant factors in terms of public policies for attracting FDI. Basically, it tests whether the instruments of immediate control of the state can be used to increase the performance in attracting FDI. The descriptive variables used to characterise the attractiveness of public policies are grouped into four main pillars: quality of institutions, degree of development of infrastructure, quality of business environment and quality of the labor market. Each of these main pillars is assessed through a series of variables that capture both qualitative and quantitative effects, as identified in the literature. The paper studies the impact of these variables on FDI location using a panel data analysis applied to the 10 new EU members that joined it in 2004 and 2007 (Bulgaria, Czech Republic, Estonia, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia and Hungary), during the period 2003-2011. Following this approach, we can clearly highlight which of the policy instruments best explains the distribution of FDI in Central and Eastern European countries and also further can be used to increase efficiency in attracting FDI.