• LUX GVT said LUX PRL adopted, in the first vote, bill 7885 establishing a national screening mechanism for foreign direct investments likely to undermine security or public order for the purposes of implementation of 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 in the Union, as amended.

Main Points

• National mechanism will enable the authorities to screen any FDI which gives a foreign investor control of a entity under Luxembourg law carrying out a critical activity.
• In cases where the FDI would likely undermine Luxembourg's security/public order.
• National measures re the cooperation mechanism between the EU's Member States.
• Upon entry into force, foreign investors concerned will have to send the Minister of the Economy a notification before making an investment falling within the new law's scope.
• It will be up to the Minister responsible for the economy, on the basis of an opinion from the interministerial committee for the investments' screening, to take a decision.
• Re the need to trigger a screening procedure which may result in a screening decision.
• To support the persons concerned in their procedures, a page devoted to the screening of foreign direct investments will be published on guichet.lu in the following weeks.

Effectiveness

• LUX PRL will decide on dispensing a second vote on the bill; the new law will enter into force on the first day of the second month of its official publication in the gazette.