Summary
The European Commission has proposed an update to the EU’s FDI Screening Regulation, compelling all EU member states to establish national FDI screening frameworks. Following this, Greece has drafted its own framework, mandating foreign investors to seek pre-approval for significant stakes in sensitive sectors. This marks a pivotal shift, as Greece has been one of the few EU countries without such a regime.
The draft law necessitates notifications for foreign investments in specified sectors, including energy and transportation, with set thresholds for intervention based on stake percentages. The proposal is currently under consultation, and its implementation will require strategic planning to navigate potential delays and legal complexities in FDI transactions.
Key Points
- Greece has released a draft FDI screening framework requiring notifications for acquisitions of 25% or more in sensitive sectors.
- The regime applies to investments in energy, transport, defence, and cybersecurity, with thresholds for intervention based on stake percentages.
- No specific turnover or asset thresholds, except for start-ups, which increases legal obligation for investors.
- Parallel filings under merger control rules may also be necessary, calling for a coordinated approach in transactions.
- Legal advice is essential before investing, particularly in highly sensitive sectors due to broad definitions of ‘foreign investor.’
Why should I read this?
If you’re planning to invest in Greece or just curious about EU market dynamics, this article is a must-read! Greece is tightening its grip on foreign investments which could affect countless potential deals. Knowing the ins and outs of the new FDI regime could save you a heap of hassle down the line if you decide to take the plunge. We’ve done the digging so you don’t have to!