The measure expands oversight beyond French-listed companies to those listed abroad, addressing a gap and aligning with national security priorities by covering non-European investments in French firms listed overseas.

The rule aims to prevent opportunistic non-European stakebuilds in French-listed companies outside the EU, protecting national security.

The reform targets protection of critical companies and technologies amid heightened geopolitical tensions and will take effect later in August 2026.

The measure was announced via a decree published on Sunday evening, with official statements from the Prime Minister’s office outlining the security rationale.

France frames the move as part of a broader effort to protect strategic industries and technological independence while remaining attractive to foreign capital, with August implementation planned.

The screening system covers sectors such as defense, cybersecurity, AI, semiconductors, quantum tech, robotics, space, dual-use goods, essential infrastructure, energy, water, transport, telecoms, healthcare, food security, media, and critical raw materials, with inclusion of low-carbon tech, energy storage, and biotech.

To balance security with investment, the regime offers a faster 10-day preliminary assessment to decide if a full screening is needed, reducing delays.

The decree, issued by Prime Minister Lecornu, reflects France's intensified stance on sovereign risk and safeguarding strategic assets.

France tightens investment screening for non-EU buyers by lowering the threshold to require government approval from 25% to 10% of shares in sensitive sectors, applying to both French listings and abroad to curb opportunistic non-European stakes in national-security assets.

The decree specifies that acquisitions reaching or exceeding the 10% stake threshold in sensitive sectors must obtain government approval, even if the company is listed outside France.

Signed by Prime Minister Sébastien Lecornu, the decree covers purchases of 10 percent or more regardless of where shares are traded, aiming to block non-European grabs of critical industries.

Context notes that France has gradually expanded foreign-investment controls over the past decade amid geopolitical tensions and Europe-wide shifts toward sovereignty in technology and supply chains.