Luxembourg to introduce a national mechanism for the screening of foreign direct investments

Luxembourg intends to introduce a national mechanism for the ex-ante screening of each foreign direct investment (“FDI”) into critical activities. Foreign, direct and controlling investments into critical infrastructure (energy, transport, water, public health) and into critical technologies (artificial intelligence, robotics, nanotechnology, biotechnology) in Luxembourg, that are likely to endanger the security or public order, will be subject to the screening process. The legislative proposal is the result of the government’s will to strike a balance between protecting the country's best interests and maintaining its attractiveness and openness for FDIs, while simultaneously ensuring the transparency of the rules, procedures and timelines of the FDI screening process.