France tightens checks on foreign purchases of ‘sensitive’ firms
France Tightens Checks on Foreign Investment in Strategic Sectors
Poinews.com – France tightens checks on foreign purchases of sensitive companies as part of a broader effort to protect national economic interests. The prime minister's office at Matignon has announced significant changes to existing regulations, with Prime Minister Sébastien Lecornu publishing a decree on Sunday, 2 August 2026. This new framework strengthens state oversight over acquisitions by international investors seeking to purchase stakes in French companies operating within critical sectors of the economy.
Under the previous system, the Ministry of the Economy maintained scrutiny rights whenever a non-European investor acquired 25% or more of a French company listed on a regulated market outside the European Union. The updated regulations dramatically lower this threshold. "From now on, any stake of at least 10% taken by a non-European investor in a French company listed on a regulated market outside the European Union will have to be authorised by the state," the prime minister explained on social media platform X.
Protecting Sovereignty While Supporting Growth
Sébastien Lecornu emphasized the dual purpose of these measures on his X account. "Protecting our strategic companies means protecting our sovereignty. Our responsibility is twofold: to support the development of our companies while safeguarding our strategic interests," he stated clearly.
The prime minister's office outlined the primary objective in an official statement. The decision aims to "guard against opportunistic non-European shareholdings in French companies listed outside the EU that could pose threats to national security." Importantly, officials noted that this strengthened oversight will operate under a fast-track procedure to avoid unduly undermining companies' ability to raise funds on international markets.
"France has one of the most robust foreign investment screening mechanisms in Europe. But our sovereignty also depends on our ability to finance our strategic companies." — Jean-Louis Thiériot, MP
Under the new framework, investors must notify their transactions to the Treasury Directorate-General. The economy minister then has ten days to determine whether an in-depth review is necessary. This regulatory evolution aligns with recommendations from a comprehensive parliamentary report that called for a "radical shift in posture" regarding economic security.
The influential report was drafted by three prominent lawmakers: Christophe Plassard, Horizons MP for Charente-Maritime; Jean-Louis Thiériot, Right-wing Republican MP for Seine-et-Marne; and Charles Rodwell, Ensemble pour la République MP for Yvelines. Their analysis stressed that the French framework required reinforcement precisely because foreign investment "is taking on greater significance because of the geopolitical context."
FAQ: Understanding France's New Foreign Investment Rules
What is the new threshold for foreign investment requiring approval? The threshold has been lowered from 25% to 10% for non-European investors acquiring stakes in French companies listed on regulated markets outside the European Union.
How long does the economy minister have to review transactions? The economy minister has ten days from notification to decide whether an in-depth review of the transaction is required.
Which authority receives investment notifications? All investors must now notify their transactions to the Treasury Directorate-General under the new framework.
Why is France implementing these changes now? The changes respond to increased foreign investment driven by geopolitical developments and aim to protect strategic companies while maintaining their ability to access international capital markets.
Christophe Plassard offered his perspective on France 24, calling for French policymakers to "shed our naivety." He argued that "We need to be defensive if our capital and our companies come under attack. But we must also be on the offensive and clear-eyed about our ability to retain our know-how." This balanced approach reflects France's commitment to both protection and growth in an increasingly competitive global economic landscape.