Finland proposes expanded FDI regime to enhance national security
On June 3, 2026, Finland's Ministry of Economic Affairs and Employment published a draft government proposal for an Act on the Screening and Authorization of Foreign Investments, signaling a significant expansion of the country's foreign direct investment (FDI) screening regime. This proposed legislation aims to address risks to national security, security of supply, and foreign influence activities more efficiently.
Key Changes in the Proposed FDI Act
- Mandatory Pre-Closing Permits: The current voluntary confirmation route would be replaced by a mandatory pre-closing permit requirement for in-scope investments.
- Expanded Scope: The number of cases subject to Finnish FDI review is expected to roughly triple, with an estimated 60–70 additional cases per year.
- Alignment with EU Regulations: The proposal aligns with the EU's forthcoming Regulation on the Screening of Foreign Direct Investments, aiming for a harmonized approach across member states.
Implications for Foreign Investors
Foreign investors considering acquisitions or investments in Finland should be prepared for a more stringent and comprehensive screening process. The mandatory pre-closing permit requirement signifies a shift towards proactive control, potentially affecting transaction timelines and necessitating thorough compliance with the new regulations.
Next Steps
The consultation period for the draft proposal is open until July 16, 2026. Stakeholders are encouraged to provide feedback, which will be considered before the final Government Proposal is presented in autumn 2026. The new Act is intended to enter into force in spring 2027.
This legislative initiative reflects Finland's commitment to safeguarding national interests while maintaining an open and positive stance towards foreign investment.