The geopolitical environment continues to drive reform of
foreign investment rules in Europe, with government proposals
clarifying and tightening such rules in the interest of national
security. Recent foreign state-backed investments in critical
European Union infrastructure, in particular, have sparked concerns
that the EU's collective security is jeopardized by the lack of
a harmonized foreign investment control framework.
The current focus on foreign investment in Europe mirrors
developments across the world, including recent CFIUS reform. (See
our August 6, 2018, client alert "
US Finalizes CFIUS Reform: What It Means for Dealmakers and Foreign
Investment.") With incoming EU and U.K. regimes, as well
as recent developments in France, Germany and Russia, long-standing
CFIUS experience in the U.S. has the potential to be a useful gauge
for future developments (for example, the jurisdiction expansion to
noncontrolling investments).
