May 05, 2020

Foreign Investments in France: New Regulatory Framework

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The declarations of the French Minister of Economy on April 29, 2020 regarding new restrictions on foreign investment underlines a global trend towards increased scrutiny on inbound foreign investments in French strategic companies.

However, the level of screening for foreign investments in France had in fact already been increased prior to the outbreak of the COVID-19 pandemic. Since April 1, 2020, foreign investments are indeed subject to a new regulatory framework derived from legislation adopted in May 2019 (the PACTE law) and the related decree and ministerial order adopted on December 31, 2019. These measures also implement EU regulation of March 19, 2019 establishing a framework for the screening of foreign direct investments into the Union.

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