PARIS: France will permanently lower the equity threshold for scrutinizing foreign investments from outside the European Union to 10% from 25%, Finance Minister Bruno Le Maire said on Thursday.
Le Maire made the remark during a New Year address in which he also said European countries needed to step up their support for domestic businesses, in particular with regards to a massive US spending plan.
"We will plead in favour of better taking into account European interests as the Inflation Reduction Act is being implemented," Le Maire said, adding he would travel to Washington with his German counterpart Robert Habeck in February in pursuit of this goal.
The French government has, in recent years, applied and strengthened the French Foreign Investment Regime (FFIR). The FFIR is overseen by the French Ministry of the Economy, Finance and Recovery (MOE) and is governed by the French Monetary and Financial Code, which has been amended several times of late to increase the scope of the regime.
In addition to the FFIR, the European Union (EU) adopted its own FDI screening mechanism by way of Regulation (EU) 2019/452. The FDI Screening Regulation ensures that the EU aspect of any proposed FDI in a member state is considered, requiring notification to the European Commission. It also enhances cooperation between member states when screening and discussing proposed transactions. -- Reuters
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