France tightens foreign investment checks to 10% threshold

France has tightened its oversight of foreign investments in strategic sectors by lowering the threshold for government approval to 10% of shares for non-European investors acquiring stakes in French companies listed outside the European Union. Prime Minister Sébastien Lecornu announced the new rule, emphasizing the need to safeguard national interests amid heightened geopolitical tensions while still supporting business growth.

The decree specifically targets companies operating in sensitive sectors, including defense, critical infrastructure, and key technologies. This decision aligns with recommendations from a parliamentary report advocating for a strengthened approach to economic security, focusing on the protection of strategic assets, supply chains, and technological sovereignty.

Lecornu's office stated that the government will aim to respond to investment proposals within a 10-day fast-track period to avoid unduly hindering companies' ability to raise capital. The measure is intended to guard against opportunistic non-EU shareholdings that could pose national security risks.

France previously implemented a similar screening process for acquisitions of French companies listed on European markets, which was later made permanent. This extension to companies listed outside the EU broadens the protective framework. Germany and Spain also maintain comparable foreign investment screening regimes with a 10% acquisition threshold for strategic sectors.