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ARTICLE · 07 MAY 2021

Germany Further Tightens Rules On Foreign Direct Investment

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On April 27, 2021, the German government adopted the 17th Regulation for the Amendment of the German Foreign Trade Regulation ("Amendment Regulation").

GermanyGovernment, Public Sector
Axel Vogelmann
Axel Vogelmann
Markus Käppler
Markus Käppler
Davina Garrod
Davina Garrod
Scott Pettifor
Scott Pettifor
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Key Points

  • On April 27, 2021, the German government adopted the 17th Regulation for the Amendment of the German Foreign Trade Regulation (Außenwirtschaftsverordnung (AWV)). The regulation, which came into force on May 1, 2021, is expected to provisionally conclude the comprehensive overhaul of Germany's foreign direct investment screening regime, which has been successively tightened over the last few years through various amendments of the German Foreign Trade Regulation and the German Foreign Trade Act (Außenwirtschaftsgesetz, (AWG)). The amendments will significantly increase the scope of acquisitions that must be notified to and require clearance by the German Ministry for Economic Affairs and Energy (Bundesministerium für Wirtschaft und Energie, (BMWi)).

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