Germany Drafts Unified Foreign Investment Screening Law
A working draft of Germany's Investment Screening Act would consolidate screening rules currently found in the Foreign Trade and Payments Act and Ordinance into one statute. It would implement the revised EU FDI Screening Regulation and, in some areas, go beyond EU requirements. The draft would treat investors from Switzerland, Norway, Liechtenstein, and Iceland like other non-EU investors and focus on nationality rather than residence.
The draft, circulated in early October 2026 by the Federal Ministry for Economic Affairs and Energy, would replace separate screening provisions in the AWG and AWV with one statute. It would implement the revised EU FDI Screening Regulation, whose minimum standards begin applying on 17 January 2028, while exceeding EU requirements in certain areas. The text remains a working draft and still requires ministerial alignment, state and industry input, Cabinet approval, and parliamentary consideration.
Under the proposal, Swiss, Norwegian, Liechtenstein and Icelandic investors would face the same treatment as other non-EU investors. Citizenship would matter more than residence: only people with solely German or EU nationality living in Germany or the EU would qualify as domestic or EU investors. The ownership chain could also bring founders, managers and co-investors into the assessment.
Count words. First para: The(1) draft(2), circulated(3) in(4) early(5) October(6) 2026(7) by(8) the(9) Federal(10) Ministry(11) for(12) Economic(13) Affairs(14) and(15) Energy(16), would(17) replace(18) separate(19) screening(20) provisions(21) in(22) the(23) AWG(24) and(25) AWV(26) with(27) one(28) statute(29). It(30) would(31) implement(32) the(33) revised(34) EU(35) FDI(36) Screening(37) Regulation(38), whose(39) minimum(40) standards(41) begin(42) applying(43) on(44) 17(45) January(46) 2028(47), while(48) exceeding(49) EU(50) requirements(51) in(52) certain(53) areas(54). The(55) text(56) re
The proposed regime could affect foreign investors, dual nationals, founders, managers and co-investors, as nationality and ownership-chain reviews may shape deal feasibility. Companies in defence, critical infrastructure, AI, semiconductors, media and other listed sectors may face earlier or broader filing duties, potentially increasing compliance costs and delaying transactions. For the wider public, tighter screening may strengthen oversight of sensitive assets and communications infrastructure, though it could also influence available capital, market openness and media ownership patterns. The draft’s final scope remains uncertain, so these effects may vary. Count: The(1) proposed(2) regime(3) could(4) affect(5) foreign(6) investors(7), dual(8) nationals(9), founders(10), managers(11) and(12) co-investors(13), as(14) nationality(15) and(16) ownership-chain(17) reviews(18) may(19) shape(20) deal(21) feasibility(22). Companies(23) in(24) defence(25), critical(26) infrastructure(27),