The Netherlands to Shield Critical Technologies from Foreign Takeovers by 2027
The Hague, Monday 8 June 2026
To combat rising foreign espionage and sabotage, the Netherlands will mandate strict state screening for investments in six critical technologies, including artificial intelligence, starting in 2027.
Expanding the Defensive Perimeter
On 8 June 2026, the Dutch government outlined plans to significantly broaden its investment screening mechanisms [1]. Effective from 1 January 2027, the National Security Act on Investments, Mergers and Acquisitions (Wet vifo) will encompass six additional sensitive technology sectors: artificial intelligence (AI), advanced materials, nanotechnology, sensor and navigation technology, partial biotechnology, and nuclear technology for medical use [1]. For the investment community, this means that emerging startups and scale-ups operating in high-tech systems and materials (HTSM) will soon fall under rigorous state oversight [1][GPT].
The Machinery of State Screening
The operational execution of these safeguards lies with the Investment Screening Bureau (BTI), an entity within the Ministry of Economic Affairs and Climate Policy [1]. The BTI is tasked with evaluating potential risks to national security and possesses the authority to impose strict conditions on, or outright prohibit, foreign investments [1]. Due to the highly sensitive nature of corporate data, the BTI operates with strict confidentiality; individual notifications, ongoing investigations, and specific screening outcomes are shielded from public disclosure, though the Ministry does publish an aggregated annual report on its caseload [1].
Institutional Restructuring for Economic Resilience
To manage the expanded scope of the Wet vifo and fortify national economic defences, the Directorate-General for Enterprise and Innovation (DG B&I)—a body comprising 320 employees—is undergoing a strategic restructuring [2]. On 8 June 2026, the Ministry published a vacancy for a newly created position: Director of Economic Security and Resilience [2]. Operating out of The Hague, the successful candidate will be responsible for building this new directorate and further developing legislation aimed at protecting critical value chains, including the Defence Industry Resilience Act (WWDI) [2].
Implications for Venture Capital and Deal Flows
For private equity and venture capital firms navigating the Benelux ecosystem, the regulatory horizon for 2027 necessitates immediate adaptations to due diligence frameworks [GPT]. Transactions involving startups in AI, advanced materials, and sensor technologies will require extended timelines to accommodate mandatory BTI assessments [1][GPT]. While the Dutch government maintains its commitment to an open economy, the impending expansion of the Wet vifo signals a definitive shift towards prioritising sovereign economic resilience over frictionless capital flow [1][2].