“Law 5202/2025: New Legal Framework for Foreign Direct Investment (FDI) in Greece”
(article by Α. Chlampoutaki – Senior Associate, published on Lexology, June 13, 2025)
Law 5202/2025 (Government Gazette A 84/23.05.2025), incorporating Regulation (EU) 2019/452, introduces a national mechanism for evaluating and controlling Foreign Direct Investments (“FDI”) that take place within Greek territory or may have cross-border implications. The EU Regulation’s primary goal was to establish the European legal framework relating to foreign direct investments where restrictive measures could be adopted on the grounds of security or public order subject to certain requirements that were left to be determined by the Member States. Given that foreign direct investment is welcomed as it contributes to the Union’s growth by enhancing its competitiveness, creating jobs and economies of scale, bringing in capital, technologies, innovation, expertise, and by opening new markets for the Union’s exports, this regulatory framework is only aimed at screening the investments that are likely to harm a country’s public security and order. It is to that end that Law 5202/2025 enacting the provisions of the Regulation, establishes a screening mechanism for FDIs in the Greek territory in sectors deemed as sensitive or highly sensitive such as energy, transport, digital infrastructure, defense, cybersecurity, artificial intelligence, port and sub-sea and tourism infrastructure in border regions. Furthermore, it defines the criteria for subjecting investments to screening, outlines the procedures for application submission and evaluation, and designates the competent authorities responsible for the process in Greece.
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