Foreign direct investment rules in selected European countries – an overview: This article was drafted in June 2020 and was correct at the time of writing.

Abstract

Purpose

To provide an overview of the national foreign direct investment (“FDI”) screening mechanisms in place across Europe including in France, Germany, Italy, the Netherlands, Spain and the UK.

Design/methodology/approach

This article summarizes the key elements of the national FDI screening regimes of some of the leading European economies. This includes setting out the relevant investment thresholds, protected sectors, lengths of review periods, standstill obligations and potential sanctions in each jurisdiction.

Findings

Many of Europe’s leading economies are following the wider global trend towards stricter reviews of foreign investment ahead of the EU Screening Regulation coming into force in October 2020. However, the approach taken to FDI screening can vary significantly at a country level in terms of both process and substance and the applicable laws are evolving rapidly, not least as a response to concerns related to the impact of COVID-19.

Practical implications

Investors looking to make acquisitions in Europe will need to consider whether national FDI screening will apply to their proposed investments. Depending on the jurisdiction, FDI screening can introduce lengthy review periods and require detailed information gathering as well as uncertainty as to the final outcome. Potential investors also need to consider the risk of sanctions, including criminal sanctions, for non-compliance with the screening regimes.

Originality/value

This article offers a summary and comparison of national FDI screening regimes across Europe.

Citation

Burgess, G.P., McIver, T., Tenglemann, P., Lariven, R., Pomana, A., Schoberwalter, J. and Troina, E. (2021), "Foreign direct investment rules in selected European countries – an overview: This article was drafted in June 2020 and was correct at the time of writing.", Journal of Investment Compliance, Vol. 22 No. 1, pp. 1-19. https://doi.org/10.1108/JOIC-07-2020-0009