The French Government issues new rules substantially revising the French foreign direct investments regulation and adds new regulations which set up an EU screening mechanism

In Short The Situation: The French government issued on December 31, 2019, new rules substantially revising the French Foreign Direct Investments ("FDI") regulation. These new provisions mostly implement the recent PACTE law and the new EU FDI regulation which set up an EU screening mechanism. The Result: The new rules greatly extend the scope of the (i) covered investments; (ii) investors; (iii) sensitive business; and (iv) government's grounds to refuse authorization. At the same time, the authorization proceeding is clarified and its timeline could, in the simplest cases, be accelerated. Looking Ahead: By updating the French FDI regulation, the French government has clearly decided to extend not only its screening of any FDI in France but also its capacity to control and to impose