- SWI SECO announced federal council consultation on legislation to screen foreign investment in Switzerland, following Motion 18.3021 Rieder adoption.
- Follows SWI GVT August 2021, rules on foreign investment control.
- Federal council is instructed to draft legislation, but it advises against the new law.
- Believes the cost-to-benefit ratio is unfavorable and existing regulations sufficient.
- Proposed law seeks to prevent threats to public order and security posed by foreign investors acquiring Swiss companies, especially those linked to foreign governments.
- New regulations would define how these would be authorized; small firms exempted.
- Says inward foreign investment essential to Switzerland, screening should be targeted, transparent, predictable, compatible with existing obligations under international law.
- SWI SECO would be responsible for screening/coordinating with administrative bodies.
- The decision will be made by consensus across relevant administrative bodies, however federal council will make the final decision if no agreement is reached.
- The consultation closes on 9 September 2022.