The screening of foreign direct investments (“FDI“) has a long history in Finland. The ownership of certain strategically important companies has been subject to review, with varying scopes and procedures, since the 1940s. At the same time, the screening regime has not significantly impacted foreign investors’ opportunities to invest in Finland.
For example, under the current Act on the Monitoring of Foreign Corporate Acquisitions (172/2012, as amended in 2014 and 2020), no acquisition has been prohibited. This does not, however, exclude the possibility that investors have withdrawn applications or decided not to proceed with contemplated acquisitions due to concerns about obtaining the required approval. In addition, in a small number of cases the competent authority, the Ministry of Economic Affairs and Employment (“MEAE“), has imposed conditions, agreed on with the investor, in its approval decisions in order to safeguard key national interests.
The MEAE published the first draft of the new Act on the Screening and Authorisation of Foreign Investments in June 2026. The exact content of the new legislation remains uncertain, as the reform is still under preparation.
What can already be said with certainty is that the new act will implement the changes required by Regulation (EU) 2026/1386 of the European Parliament and of the Council on the Screening of Foreign Investments in the Union, which will apply from 17 January 2028. For Finland, this will mean, among other things:
- Introduction of a two-phase screening procedure consisting of an initial review of a contemplated investment within 45 calendar days from the filing and, where necessary, an in-depth investigation in cases involving potential risks to security or public order. In many cases, this is expected to shorten the review process, as even straightforward cases currently often take two to three months to be cleared;
- Extension of the scope of economic sectors and potential target entities subject to screening. The current regime focuses primarily on the defence and security sector as well as companies critical for the national security of supply. Based on the requirements of the EU Regulation 2026/1386, the most obvious specific additions to the scope include:
- the development or production of certain semiconductors, quantum technologies, and artificial intelligence technologies; and
- the exploration, extraction, processing, or recycling of certain critical raw materials.
It can also be predicted with reasonable certainty that greenfield investments will be brought within the scope of the new regime, at least to some extent e.g. relating to certain data centres. Similarly, access to classified information is likely to become one of the criteria for determining whether an entity is subject to screening.
As regards the reactions to the first draft, it may be noted that the National Emergency Supply Agency has stated in its consultation response that the current draft may not sufficiently address aspects related to economic security. In particular, the agency refers to companies that possess technology or production capabilities that are difficult to substitute and that give such companies a remarkably important position in the Finnish market. Some stakeholders have also proposed the introduction of a de minimis rule under which investments in small-scale businesses would be excluded from the scope of the regime in order to balance out the significantly expanded application of the regime.
A Government Bill is expected to be submitted to the Parliament in September 2026 with the aim of bringing the new regime into force in spring 2027. We will continue to monitor the legislative process and provide updates as the reform progresses. It is important for investors to consider the proposed changes and extended scope of the filing obligation well in advance of any contemplated investment.