Infrastructure: Stronger Restrictions On Foreign Investments

The German government is considering enacting stronger legislation against foreign investors that it deems a threat to public security or order. The proposed regulation may (either implicitly or explicitly) cover strategic infrastructure. A first draft for an amendment to the Foreign Trade Act and its implementing ordinance was circulated to the federal ministries for comments at the end of October.

The amendment would empower the Federal Ministry of Economics and Technology (the Ministry), in consultation with the Foreign Office, to examine whether the acquisition of a domestic company, or a stake in such company by a foreign investor, affects Germany's public order or security. The Ministry may prohibit or otherwise restrict such acquisition as necessary to maintain public order or security.