France Tightens Foreign Investment Controls with New Decree Lowering Intervention Threshold

On August 2, 2026, a new French government decree was published which significantly tightens state scrutiny over foreign investments in strategic sectors. The decree, highlighted by Economy Minister Sébastien Lecornu, allows the French state to block foreign acquisitions in companies deemed sensitive once foreign participation reaches 10%. This marks a substantial reduction from the previous threshold of 25%, enabling earlier intervention by French authorities to protect key economic assets.

The government's move aims to enhance national security and economic sovereignty amidst increasing foreign investment pressures. By lowering the intervention threshold, France can now more closely monitor and potentially oppose foreign stakes in crucial industries, reinforcing its control over strategic economic domains.

This regulatory tightening reflects growing concerns in France over safeguarding its strategic sectors, ensuring that foreign investors do not gain influential positions without state oversight. The decree grants the government new legal authority to act swiftly to prevent potentially harmful foreign takeovers or influence.

According to Liberation, this development grants the state more robust tools to react to foreign investments and signals a shift towards greater economic vigilance. The measure is part of broader efforts to maintain France’s economic security in a complex global investment environment.