In the November 2024 issue of Legal Success, Bär & Karrer examines how the current draft of the Investment Review Act is affecting Switzerland as a business location.
The article uses experience with foreign foreign direct investment (FDI) regimes to show how FDI regimes delay transactions and are used for industrial policy. The article shows that Switzerland would be best advised not to enact an FDI regulation in the form of an investment screening law, and that if it enacts an investment screening law, the Federal Council's proposal is preferable to that of the National Council.
At the same time, the article shows that an overly restrictive FDI law could not only deter investors, but also jeopardize access to international capital and know-how. Since many critical sectors in Switzerland are already state-controlled, a highly restricted regulation would make more sense in order to preserve the open and competitive character of the Swiss economy.
Legal Success 11/2024, Handelszeitung
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