Critics of the new decree warn that lowering the investment threshold could inadvertently chill foreign interest in French companies. By increasing the scope of government oversight, the state risks creating a more burdensome regulatory environment that may deter international investors who prefer certainty and speed. Even with an expedited 10-day review, the requirement for prior authorization introduces a new layer of political risk to standard market transactions, potentially leading investors to favor companies in more predictable jurisdictions.
There is also concern that the definition of 'sensitive sectors' remains broad and subject to interpretation, which could lead to inconsistent application of the rules. If the government’s intervention becomes too frequent or unpredictable, it may complicate the ability of French firms to raise capital on global markets. For companies that rely on international funding to scale their operations, the perception of increased state interference could lower their valuation or limit their access to the diverse pools of capital necessary for innovation and growth.
Furthermore, some analysts argue that such measures could trigger reciprocal actions from other nations, potentially harming French companies that seek to invest abroad. By prioritizing state control over market openness, France may be signaling a shift toward protectionism that could isolate its industries in the long run. The challenge for the government will be to prove that these new powers will be used sparingly and transparently, rather than becoming a tool for political intervention in the private sector.