Investment Screening Reform in Germany – A balance between freedom of investment and security interests
15 October 2026
Germany is fundamentally overhauling its investment screening law. The German Federal Ministry for Economic Affairs and Energy („BMWE“) has prepared draft legislation for a stand alone Investment Screening Act (Investitionsprüfungsgesetz, „IPG“) and Investment Screening Ordinance (Investitionsprüfungsverordnung, „IPV“), both of which have been undergoing inter-ministerial consultation since the end of September 2026. The Act is expected to enter into force in spring 2027.
The new IPG is intended to capture those security-relevant risks which, in light of heightened geopolitical tensions, are not adequately addressed by current law. At the same time, the BMWE is aligning German law with the new EU Screening Regulation (EU) 2026/1386, which will apply in all Member States from 17 January 2028. This is intended to accelerate screening procedures and reduce the burden on businesses and government.
