Executive Summary
- Making long-term investments in jurisdictions outside the EU in sectors that are heavily regulated by local and federal governments brings commercial and political risks, especially where those foreign investments are long-term and require significant up-front capital.
- Germany has enacted over 100 bilateral investment treaties (“BITs”) designed to protect outbound German investment. These BITs usually protect direct shareholders in the underlying investment, as well as indirect (intermediary) shareholders, ultimate beneficial owners, and lenders.
