The 2024 annual report on foreign investment control in France, published by the General Directorate of the Treasury, highlights the importance of protecting national interests in an unstable global context. Vigilance and agility are essential to address geopolitical, economic, and energy risks. This year, significant measures have been taken to strengthen the control of foreign investments, thus ensuring France's economic security and sovereignty.
Key Points on Foreign Investment Control
In 2023, French companies faced increased risks due to inflation, rising interest rates, and financial market instability. These disruptions made investment flows more volatile and companies more vulnerable. To address these challenges, the government lowered the foreign investment control threshold to 10% of voting rights in listed companies for non-European investors. Branches of foreign companies in France are also subject to this control to prevent regulatory circumvention. Additionally, control now extends to the activities of extraction, processing, and recycling of critical raw materials as well as low-carbon technologies and photonics.
Key Figures of Foreign Investment Control In 2023, 309 foreign investment cases were submitted, compared to 325 in 2022. Of these, 255 decisions were made, including 135 investment authorizations. Among these authorizations, 44% were subject to conditions to preserve national interests. This proportion is lower than in 2022, where 53% of authorizations were conditional.
Most ultimate investors were non-European (67.3%), with a strong presence from the United States, the United Kingdom, and Canada. Financial investors represented 43% of the investors, followed by industrial investors (32.7%) and individuals (24.3%).
Procedures and Regulations
The process of foreign investment control in France is strict and detailed. Authorization requests can be deemed ineligible or may result in a simple, conditional, or refusal decision. Since October 1, 2023, a new electronic platform, "Plateforme IEF," has been established to facilitate and accelerate the submission of requests and notifications.
The goal is to ensure the predictability and clarity of the system, simplifying and clarifying procedures. The new measures adopted this year aim to make the submission of requests more efficient and to speed up their processing.
Expansion of Control Scope
The regulation of foreign investment control has been expanded to include critical activities such as the extraction, processing, and recycling of raw materials. Additionally, research and development activities related to low-carbon technologies and photonics are now subject to control. These extensions aim to better protect national interests against new technological and economic challenges.
Role of the Treasury
The General Directorate of the Treasury plays a central role in implementing foreign investment control. It develops the regulatory and legislative framework, processes investment requests, and exercises police and sanctioning powers in case of non-compliance. The Treasury also represents France in European and international forums on these issues, ensuring coordination and cooperation with other EU member states.
Filtering of Foreign Investments in Europe
Since the entry into force of the European regulation of March 19, 2019, France actively participates in the European cooperation mechanism on foreign investment screening. This mechanism allows member states and the European Commission to share information and issue opinions on investments that could threaten public order or national security.
Conclusion
The 2024 annual report demonstrates France's continued commitment to protecting its national interests while remaining attractive to foreign investments. The measures adopted this year strengthen the legal framework and ensure rigorous monitoring of investments, thus guaranteeing France's economic security and sovereignty.
For more information on foreign investment control, you can visit the General Directorate of the Treasury's website or directly access the IEF platform to submit your requests and track the progress of your files.
Attached is the link where you can consult the full report: Full Report in French
And in English: Full Report in English
Do not hesitate to contact us for any assistance with your investments in France.
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