webleads-tracker

MENU
Practice SIMON Associés SIMON Avocats Network China Desk Team Lettre Chine Our websites Search Reference work Africa Americas Asia Focus China Caspian Region Europe MENAP Medias Contact Newsletter
SUIVEZ NOUS SUR
Simon International
simon associés simon associés
Home >Europe

COVID 19 – Control Regime Increase on Foreign Direct Investments in Europe

Part II

Ahead of the Regulation (EU) 2019/452 dated March 19, 2019 regarding foreign direct investment (« FDI »), which will enter into force on 11 October 2020, and in the context of the COVID-19 pandemic, Germany decided in June to strengthen

  • the German Foreign Trade and Payments Act (“AWG” :Außenwirtschaftsgesetz) : the proposal amending the FDI Screening rules which passed the German Federal Government on 8 April 2020, was adopted by German Parliament on 18 June 2020,

and

  • the Foreign Trade Regulation (“AWV” : Außenwirtschaftsverordnung)
GERMANY – FOREIGN DIRECT INVETSMENTS - adoption of stricter FDI rules under German Foreign Trade Law – July 08, 2020

Ahead of the Regulation (EU) 2019/452 dated March 19, 2019 regarding foreign direct investment (« FDI »), which will enter into force on 11 October 2020, and in the context of the COVID-19 pandemic, Germany decided in June to strengthen

  • the German Foreign Trade and Payments Act (“AWG” :Außenwirtschaftsgesetz) : the proposal amending the FDI Screening rules which passed the German Federal Government on 8 April 2020, was adopted by German Parliament on 18 June 2020,

and

  • the Foreign Trade Regulation (“AWV” : Außenwirtschaftsverordnung)

Such move is part of the measures boosted by several European Union (« EU ») countries, since the break-out of COVID-19 in Europe during Q1 2020, to adapt the FDI screening on their domestic market.

On 3 June 2020, a 15th amendment to the AWV (which also goes by the name “Corona Amendment”) (which provides for specific rules implementing the AWG), came into force in Germany. The purpose here is 

  • to protect German national interests by increasing the screening process by the relevant German authorities (i.e. the Federal Ministry of Economy and Energy (« BMWi »)),
  • in order to more effectively screen and prevent critical company acquisitions from third countries, should such acquisitions endanger German public order or national security (or the EU).

The Corona Amendment applies in particular to companies active in the health sector, such as e.g. companies that develop, manufacture personal protective equipment,medicinal products and vaccines, medical devices, and other medical products for the treatment of infectious disease.

Pursuant to the amendment to the German Foreign Trade and Payments Act adopted on 18 June 2020, it will now be sufficient that an investment is “likely to affect” security or public order. It is no longer required an “actual and sufficiently serious danger affecting a fundamental interest of society”. The focus will now not only be on the effects of an acquisition in Germany, but also on the effects on other EU Member States and on EU programs and projects. 

Planned critical acquisitions of at least 10 % of the voting rights in German companies active in the listed sectors by investors from third countries, must be notified to the German BMWi on a mandatory basis. Third countries mean non-EU states, it being specified that acquirers from EFTA states (i. e. Iceland, Liechtenstein, Norway, and Switzerland) not being considered non-EU states for the purposes thereof.

Other articles

French State of health emergency and adaptation of the rules for the presentation and the approval of companies’ financial statements

Order of 25 March 2020 (Ordonnance N° 2020-318)

- Vu : 970

Pursuant to the Law of March 23, 2020 (Loi n° 2020-290) introducing a state of health emergency in France, the Order of March 25th (Ordonnance N ° 2020-318) has extended several time limits applicable to legal persons and entities without legal personality under private law, for the presentation and the approval of their financial statements.

> Read more

Portugal - Personal Data

- Vu : 1789
List of personal data pocessing activities that must be subject to a data protection impact assessment – REGULATION NR. 1/2018 > Read more


Most viewed...
Simon Associé present at the 5th Overseas Investment Forum organized by Yingke
13 octobre 2017 - Vu : 11695
Lara BOURSIER participates in two round tables during the 5th Overseas Investment Forum organized by Yingke on October ...
> Read more
A window on the post-13th National People's Congress and on the 2018 Edition of the BOAO Forum
5 juillet 2018 - Vu : 10909
The 13th National People's Congress of China (NPC) and the 13th National Committee of the Chinese People's Political Consultative Conference (CPPCC) ...
> Read more
SIMON Associés and YINGKE Partners welcome NCB President, Mrs Christiane Féral-Schuhl, in Beijing
11 janvier 2018 - Vu : 6494
In the context of the first official visit of French President Macron in China, SIMON Associés and YINGKE ...
> Read more
Lara Boursier, interviewed by Global Retail News, gives advice to foreign brands wanting to set up shop in China
18 octobre 2017 - Vu : 3514
 In this interview Lara Bousier gives advice to foreign brands wanting to set up shop there, talks about the legal ...
> Read more
Copyright ©2017 Simon International | Creation and realisation by Webcd©