On 12 September 2019, FR GVT issued guidance on foreign investment.
- Treasury issued information on prior authorization process for foreign investments.
- Followed December 2018, FR GVT decree on authorized foreign investments.
- Followed PACTE law on business transformation and growth.
Overview
- PACTE law reformed prior authorization process, to preserve national strategic interest.
- Aims to better prevent or punish breaches, with new powers for Minister of Economy.
- Aims to protect future sectors, extended application to aerospace and civil protection.
- And to research and development activities in cybersecurity, artificial intelligence, robotics, additive manufacturing, semiconductors and hosts of certain sensitive data.
- Also aims to simplify, so companies which are the subject of an investment project will also be able to ask a prior authorization, in conditions to be specified by decree.
- To increase transparency, statistics on foreign investment in France are now published.
Guidance
- Which transactions are subject to prior authorization, including conditions and sectors.
- Overview of processing applications for approval and what to include in application file.
- Risks of non-compliance, including police and sanctioning powers of the Minister.
