194 foreign investment projects in "sensitive" sectors failed

A total of 194 foreign investment projects in a series of sectors considered "sensitive" did not succeed in 2022, the Ministry of Economy having authorized 131, more than half of them with conditions "likely to guarantee the preservation of national interests". "The activity of the control of foreign investments in France (IEF) remained stable in 2022, with 325 files submitted to the Directorate General of the Treasury, against 328 in 2021," said the ministry in a statement, on the occasion of the publication of the annual activity report of the IEF.

"Of the 325 files, 194 applications for authorization were not successful and 131 investment operations in the field of the IEF decree were authorized," says Bercy. "53% of these 131 operations were subject to conditions to ensure the preservation of national interests." "The protection of key technologies and companies for the country's economic security is a priority," commented Economy Minister Bruno Le Maire.

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In 2020, to further protect companies deemed strategic weakened by the Covid-19 pandemic, the threshold triggering the control of non-European foreign investments was lowered from 25% to 10% of voting rights within listed companies. The measure had already been extended, until the end of 2023 and the government announced at the beginning of the year that it wanted to perpetuate the reduction.

The foreign investor (non-European) crossing the threshold of 10% of the voting rights of a strategic listed company must notify Bercy, which can decide on a more in-depth examination, or even block the operation if it considers it contrary to French interests. 'Applications for investment authorisation, where they are not withdrawn, may ... be the subject of a decision" of authorization, with or without conditions, or refusal, explains the ministry.

The sectors concerned are defence and security (weapons, war material but also certain technologies with military use such as cryptology), but also infrastructure, goods or essential services (energy, water, transport, public health, food security, etc.). Defence and related sectors known as "sensitive by nature" account for 24% of investment authorizations, more than three-quarters of which were subject to conditions, according to the annual report. Some 52% of the files authorized concerned essential infrastructure, goods or services and 24% both sectors at the same time.