Foreign investors should not fear Germany's new legislation
to monitor foreign investment, but the federal government has a
responsibility to apply its new powers conservatively.
Yesterday, the German cabinet approved a bill that gives the
state power to scrutinise acquisitions of more than a 25% stake
by entities based outside of the EU or EEA. The Ministry of
Economics and Technology (BMWI) will be able to prohibit direct
or indirect acquisitions that it considers a risk to the public
order or security of Germany.
"It's nothing completely absurd, but it depends on how it is
handled. The concept...