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This info corner provides an up-to-date overview of the currently existing FDI regimes in the CEE, covering the following aspects: Filing requirements, process and timetable, legal basis and related Schoenherr publications. Following the trend to tighten and set up FDI screening mechanisms, it will also keep pace with ongoing developments in jurisdictions where new rules are in the pipeline and therefore be continuously updated.
Click on each country to expand further information.
As of 11 October 2020 the EU FDI Screening Regulation is in force, ending the long wait for a Union framework to screen foreign direct investments. The umbrella spanned by the EU FDI Regulation is a further (crucial) building block in the EU's endeavours to tighten and coordinate the screening of foreign direct investments.
Please see here for more information.
A (mandatory) filing requirement is triggered if a foreign investor intends to carry out an investment (directly/indirectly) in an Austrian undertaking.
This includes (i) the acquisition of shares reaching/exceeding 10 %, 25 % and 50 % (voting rights), (ii) the acquisition of control, and (iii) the acquisition of essential/all assets of an undertaking (asset deals), provided that (a) the undertaking is active in a critical sector, and (b) the undertaking is Austrian, i.e. has its seat or its central administration in Austria (local nexus).
Please see here for more information.
Although there is no FDI filing requirement in Croatia, the Implementing Regulation has established the National Contact Point and the Interdepartmental Commission, which will act as the competent authorities for a coordination mechanism under the EU FDI Screening Regulation.
Please see here for more information.
Poland has enacted two separate sets of rules related to different investors, with other companies/sectors protected, different competent authorities, separate procedural rules and fines.
Please see here for more information.
An information letter must be provided to the National Defence Council (via the Romanian Competition Council) if (i) the economic concentration (which involves a change of control) occurs in one of the relevant sectors, and (ii) the turnover thresholds required for a merger control filing (i.e. aggregate worldwide turnover of EUR 10m and Romanian turnover of EUR 4m for the involved parties) are not fulfilled.
Please see here for more information.
The Romanian Competition Council has published a draft law aimed to tighten the FDI screening (please see here for more information); public consultation is still ongoing at this date.
A (mandatory) filing requirement is triggered if a foreign investor intends to carry out or has carried out a foreign direct investment (i.e. merger or acquisition of an undertaking, investment in tangible and intangible assets, acquisition of the right to dispose of land and real estate essential to critical infrastructure / located near such infrastructure), which aims to establish or to maintain lasting and direct links between the foreign investor and an undertaking active in a sector affecting the security and public order of Slovenia and is seated in Slovenia, and the investment concerns at least 10 % of the capital or the voting rights.
Please see here for more information.
FDI booklet
This booklet provides an up-to-date overview of the currently existing FDI regimes in CEE. Following the trend to tighten / set up FDI screening mechanisms, it will also keep pace with ongoing developments in jurisdictions where new rules are in the pipeline and therefore be continuously updated.
Romania: FDI rules soon to be tightened
At the end of December 2020, the Romanian Competition Council (the "RCC") published an updated iteration of the draft Emergency Government Ordinance implementing the FDI Regulation (the "FDI Draft Law").
Has Croatia implemented FDI screening mechanism?
On 2 October 2020 the Regulation on the Implementation of the EU Foreign Direct Investment (FDI) Screening Regulation (2019/452) (OJ L 79I, 21 March 2019) (the Implementing Regulation) entered into force.
EU FDI Screening Regulation enters into force
As of 11 October 2020 the EU FDI Screening Regulation is in force, ending the long wait for a Union framework to screen foreign direct investments.
Austrian Parliament adopts new FDI screening act
On 15 July 2020 the Austrian Parliament adopted a new FDI screening act (Investitionskontrollgesetz, "ICA"), following the trend to tighten the regulatory framework for foreign investment screening (read more here: Austrian government proposes new FDI screening act).
Austrian government proposes new FDI screening act
On 27th May 2020 the Austrian government submitted a proposal for a new foreign investment screening act (Investitionskontrollgesetz) to the Parliament (the "Proposal").
03 June 2020
croatia czech republic hungary poland slovenia austria
C.Fladerer K.Hetényi P.Kułak A.Menczelesz K.Pawlak E.Škufca V.Weiss
CEE ramps up screening of foreign direct investments (FDI)
FDI screening was for a long time a blank spot on the regulatory landscape for most countries in Central Eastern Europe (CEE). Unlike Western European Member States, so far relatively few countries in Central Eastern Europe (Austria, Poland, Hungary, Romania) had instruments that allowed vetting foreign investments; albeit often with little practical relevance.
Transactions under political scrutiny – A new FDI regime in Austria
Following the adoption of the new EU framework for screening of foreign direct investments (see Schoenherr Newsletter 13.03.2019), the Austrian government recently published a draft bill to amend the current rules on foreign direct investments (FDI) into Austria.
If you have any questions regarding FDI, feel free to contact us:
Volker
Weiss
Office Managing Partner
belgium / EU
Sascha
Schulz
Counsel
austria vienna
Constantin
Fladerer
Associate
austria vienna
Ana
Marjančić*
Attorney at Law in coop. with Schoenherr
croatia
Claudia
Bock
Attorney at Law
czech republic
Ondřej
Havlíček
Attorney at Law
czech republic
Kinga
Hetényi
Office Managing Partner
hungary
Cristiana
Manea
Attorney at Law
romania
Eva
Škufca
Local Partner in cooperation with Schoenherr
slovenia