France Sees Record Levels of Scrutiny on Foreign Investments in 2024
Paris, France – The French Ministry of Economy, Finance, and Industrial and Digital Sovereignty has reported a significant surge in the number of foreign investment projects subject to government review in 2024. The article, published on economie.gouv.fr on July 31, 2025, details a “record year” for the control of foreign investments, highlighting the government’s continued commitment to safeguarding national economic and strategic interests.
The increase in scrutiny reflects a global trend of heightened awareness and regulation surrounding foreign direct investment (FDI), particularly in sectors deemed critical for national security, economic resilience, and technological advancement. France, a key player in the European Union, has been proactive in adapting its framework to address evolving geopolitical and economic landscapes.
Key Trends and Observations:
The data released by the Ministry indicates a substantial rise in the volume of investment proposals that have triggered the mandatory review process by the General Directorate of the Treasury (DG Trésor), which oversees the foreign investment control mechanism. While the specific figures are not detailed in the article’s title or initial announcement, the descriptor “record year” suggests a notable uptick compared to previous periods.
Several factors likely contribute to this surge:
- Strategic Sector Focus: France, like many nations, prioritizes the protection of its strategic sectors. These typically include defense, dual-use technologies (products with both civilian and military applications), cybersecurity, telecommunications, energy, transportation, and critical infrastructure. The increasing interconnectedness of global supply chains and the rise of new technologies mean that a broader range of investments may now fall under this umbrella.
- Geopolitical Considerations: The current global environment, marked by heightened geopolitical tensions and evolving international relations, naturally leads to increased caution regarding foreign ownership of strategically important assets and technologies. Governments are increasingly assessing not just the economic benefits of an investment but also its potential implications for national security and sovereignty.
- Technological Advancements: The rapid pace of technological innovation, particularly in areas like artificial intelligence, semiconductors, quantum computing, and biotechnology, makes these sectors particularly sensitive to foreign influence and potential technology transfer. Investments in these fields are likely receiving close examination to ensure they align with France’s innovation and development goals.
- Broadened Scope of Review: Over time, the scope of foreign investment control can be refined to encompass a wider array of activities and ownership structures, ensuring that the framework remains relevant to contemporary economic realities.
Government’s Commitment to Strategic Autonomy:
The French government has consistently emphasized the importance of economic and technological sovereignty. The enhanced control over foreign investments is a direct manifestation of this policy, aiming to:
- Protect Sensitive Technologies: Prevent the acquisition of French companies holding crucial technologies by entities that could pose a risk to national security or strategic interests.
- Ensure Economic Resilience: Safeguard critical infrastructure and industries that are vital for the functioning of the French economy and the well-being of its citizens.
- Foster Domestic Innovation: Encourage the development and growth of French companies, ensuring that innovation remains anchored within the national economy.
- Maintain Public Order and Security: Address potential risks to public safety and order that could arise from certain foreign investments.
Looking Ahead:
The “record year” for foreign investment control in 2024 underscores France’s vigilant approach to managing its economic openness. While welcoming foreign investment as a crucial driver of growth and job creation, the government remains committed to a robust and adaptable regulatory framework that balances economic benefits with the imperative of protecting national interests. This proactive stance is expected to continue shaping the landscape of foreign investment in France and across Europe.
Contrôle des investissements étrangers, une année 2024 record
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