Investment Control – Toward EU-Wide Standards

Investment Control – Toward EU-Wide Standards

January 31, 2024, Platow Brief

Horst Henschen’s commentary was included in a Platow Brief article about EU screening regulations. Horst provides his insight on what these regulations will mean for the FDI landscape in Europe.

Horst observes that “in Germany, the Federal Ministry of Economics currently only has the power to intervene two months after a transaction becomes known. Such an extension would significantly prolong the 'state of limbo' after the closing."

He also comments on how the extent of the real impact of new EU-wide rules is far from clear, saying, “Far less than 10% of transactions requiring approval are currently prohibited in Germany for reasons of investment protection […] The French authorities are much stricter when it comes to such conditions.”