Background
Greece and the EU are considered among the most attractive destinations for foreign investment in the world, attracting billions in investments from non-EU countries each year. While such investments are key to maintaining a strong economy and job market, some investments may pose a risk to the security or public order of EU member states or the EU as a whole. Therefore, most EU member states have adopted national rules to screen foreign direct investments in sensitive areas. Until now, Greece has been an exception, being one of only four EU member states without an operational national Foreign Direct Investment (FDI) screening regime.
Now, a draft law published by the Greek government for consultation on 2 April 2025 seeks to establish a framework for the screening and authorisation of FDI in Greece on grounds of security or public order. Accordingly, investments by foreign investors in sectors identified as sensitive or highly sensitive will need to be notified to the relevant Greek authority prior to their implementation.
Key takeaways
- As part of the EU’s Economic Security Strategy, the European Commission proposed updating the EU’s FDI Screening Regulation, to require that all EU member states adopt national FDI screening regimes
- Greece published its draft national FDI screening framework in April 2025, which will require that foreign investors file for pre-approval for acquisitions of 25% and above in targets active in sensitive sectors (including energy and transport) and 10% and above in targets active in highly sensitive sectors (including defence and cyber-security)
- The current proposal lacks turnover, asset value or transaction value thresholds (except for start-ups) and broadly defines foreign investors in highly sensitive sectors, making legal advice essential prior to any investments in these sectors in Greece
- Once the proposal is implemented, transactions concerned will require diligent preparation at an early stage to avoid delays and proactively manage potential FDI concerns, as well as to identify potential impact on transaction structure
- Parallel filings under merger control rules and the Foreign Subsidies Regulation may also be required, making a coordinated, streamlined and strategic approach essential