GREECE Law and Practice Contributed by: Theodoros Skouzos and Natalia Skoulidou, Iason Skouzos TaxLaw
7.3 Remedies and Commitments The authority may impose conditions to mitigate secu - rity risks rather than prohibit a transaction outright. Typical remedies include the following. • Governance-related measures: (a) excluding certain shareholders from sensitive board committees; (b) requiring Greek or EU nationals to hold certain management or security-cleared positions; and (c) limiting a foreign investor’ access to classified information. • Operational and security measures: (a) requirements for data localisation or the use of secure servers within Greece; (b) safeguards on handling personal or sensitive operational data; and (c) obligations to maintain certain levels of service, supply continuity or local operational capabili - ties. • Structural remedies: (a) ring-fencing sensitive assets or business units; and (b) carve-outs or partial divestments of highly sensitive activities. • Information and transparency obligations: (a) regular reporting to authorities on compliance; and (b) prior notification of future shareholding chang - es or changes in control. • Conditions on third-country state influence: (a) measures distancing the investor from its state owner – eg, restrictions on board representa - tion or the veto powers of state entities. These remedies align with practice in other EU FDI regimes and are typically time-limited or subject to periodic review. 7.4 National Security Review Enforcement Authority’s Powers
• Access to sensitive information or personal data. • Influence on freedom/media pluralism (limited rel - evance outside media acquisitions). • Integrity and security of critical real estate – eg, near military sites or border areas. • Public order concerns, including crime, illicit finance or sanctions circumvention. Investor-Related Factors • Whether the foreign investor is state-owned, state- controlled or otherwise linked to a third country’s government. • The investor’s track record, compliance history and involvement in past security concerns. • Whether the transaction may allow malicious access, espionage or undue influence over critical sectors. Different Treatment for Specific Investment Types • Partnerships and joint ventures: (a) joint ventures where a third-country investor gains control or material influence in a sensitive activity require notification; (b) a joint venture can trigger review even without the acquisition of an existing Greek company if it will operate in a covered sector; and (c) pure contractual collaborations without control are less likely to trigger screening. • Acquisitions by foreign governments or state-affili - ated buyers: (a) subject to more stringent scrutiny; (b) the authority examines the policy objectives and geopolitical ties of the investor’s home jurisdiction; and (c) the risk of extended Phase 2 review is substan- tially higher. • Non-controlling minority investments: (a) investments below the control thresholds are not automatically exempt; (b) minority stakes crossing the 10% (highly sensi - tive) or 25% (sensitive) thresholds must be notified even without control; and (c) where the minority investor obtains special rights, board seats, vetoes or access to sensi - tive information, the authority may treat the investment as higher risk.
The authority has broad powers to: • block a transaction before closing;
• impose remedies as a condition for approval; • prohibit the completion of an investment;
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