Sovereignty Strategie(s)
Temps de lecture : min
A few days ago, the French government decided to block the sale by satellite operator Eutelsat of its ground‑based reception antennas to the Swedish fund EQT.
After several months of review, this asset was deemed strategic, and its sale was halted under the foreign investment screening mechanism. This mechanism, described as an essential tool for preserving the country’s strategic industrial and technological capabilities, is not unique: at the European level, initiatives have been undertaken since 2020 to ensure that EU Member States put similar protections in place.
The European regulation on this topic enables coordinated monitoring through an alert system between EU countries, based on the exchange of information among all countries that have a foreign investment screening mechanism (and for some, in place for much longer). In practical terms, each country is required to report all cases subject to national‑level screening and to provide information regarding these potential investments. Certain EU programmes involving sensitive sectors are also subject to heightened scrutiny. This is the case for the European GPS, the Galileo satellite system.
This example fits directly into the broader sovereignty issues we describe in our latest Economic and Financial Outlook. First, it concerns the space sector, a segment we identify as strategic. In the current geopolitical context, control over critical communications and the need to secure access to space are major priorities for States, which are willing to invest accordingly, as illustrated by the recent recapitalisation of Eutelsat.
Second, the way these mechanisms are implemented is also instructive, as it highlights the two different levels at which the pursuit of sovereignty operates within the EU: on the one hand at the supranational level, driven by the European Commission, and on the other hand at the national level, directly at the initiative of Member States. The EU seeks cooperation among its members and uses regulation to achieve its objectives—methods that differ significantly from those of other major regions such as the United States or China, and which can sometimes take time.
Turning to the French case, the latest available annual report (2024) on completed screenings, published last autumn, records 392 filings submitted to the Directorate General of the Treasury, compared with 309 in 2023. One hundred and eighty‑two investment authorisations were granted, 54% of which were subject to specific conditions designed to mitigate identified risks. This is precisely what happened with the industrial company LMB Aerospace, a supplier to the civil and military space sector, whose strategic nature was ultimately not recognised. The sale to the American company Loar was eventually approved with two commitments: the acquisition of a preferred share by the French State to retain oversight of the company’s future strategy, and the modernisation of its industrial sites in France.
These strategies aimed at strengthening sovereignty, and the consequences they have for companies, are central to our analysis and to the construction of our investment strategy.
Written by
Julien CHEVALIER
Head of European Equity Management
