On 26 May 2026, France enacted a new law aimed at simplifying economic life and improving the business environment.

This reform introduces a broad set of measures designed to reduce administrative burdens, facilitate commercial transactions and accelerate economic projects[1].

For both domestic and foreign investors, the key question is not only what has changed, but how these changes affect business operations in practice.

A Structural Reform With Broad Scope

The law is particularly wide-ranging, covering multiple aspects of business activity - from administrative procedures to dispute resolution and industrial development.

It is structured around several key pillars, including:

. simplification of administrative procedures;

. improved access to public procurement;

. facilitation of dispute resolution;

. support for industrial and infrastructure projects.

Its overarching objective is to make the French legal and economic environment more flexible, predictable and efficient.

Key Measures Impacting Businesses

1. Reduced Administrative Burdens

The law introduces a range of measures aimed at simplifying daily business operations, including the removal or streamlining of certain administrative requirements.

The intention is clear: allow companies to focus on their core activity rather than compliance - heavy formalities.

2. Easier Access to Public Procurement

Access to public contracts is expanded through:

. simplification of procedures;

. progressive centralisation of public procurement on a single digital platform.

This development creates new opportunities, particularly for SMEs and foreign companies seeking to enter the French market.

3. Strengthened Mediation With Public Authorities

One of the most significant developments is the generalisation of mediation in disputes involving administrative authorities.

The law provides that:

. mediation may interrupt appeal deadlines;

. limitation periods are suspended during mediation.

This represents a shift towards amicable dispute resolution, reducing reliance on formal litigation.

4. Simplification of Business Transfers

The reform simplifies certain aspects of company sales and transfers, notably by reducing information obligations vis-à-vis employees in some cases.

This may facilitate transaction timelines and reduce legal complexity in M&A operations.

5. Acceleration of Industrial and Infrastructure Projects

The law introduces measures to support major economic projects, including industrial facilities and data centres.

(https://justice.pappers.fr/loi/JORFTEXT000054131304)

By easing regulatory constraints, France aims to attract investment and accelerate strategic projects.

Practical Implications for Companies

While the law is framed as a simplification reform, it also reshapes how businesses interact with public authorities and manage risk.

A More Flexible but Still Structured Environment

Simplification does not eliminate legal risks.

Companies must adapt their compliance strategies, particularly in areas where formal requirements have been reduced or modified.

A Shift Towards Negotiation and Mediation

The development of mediation mechanisms is likely to:

. encourage early settlement of disputes;

. reduce procedural costs;

. change litigation strategies.

For companies, this creates opportunities to resolve disputes more efficiently - but also requires anticipating negotiation dynamics.

New Opportunities for Market Entry

The easing of access to public procurement and the acceleration of large-scale projects create:

. new business opportunities;

. increased competition for contracts.

Foreign investors may particularly benefit from a more accessible framework.

To conclude, the 2026 Business Simplification Law marks a significant evolution of the French legal framework.

By combining administrative simplification, enhanced access to markets and a stronger focus on mediation, the reform seeks to modernise the way companies operate in France.

However, beyond simplification, the law introduces new strategic considerations - particularly in dispute resolution and regulatory compliance - that businesses must carefully navigate.

How We Can Assist?

DÉFIS AVOCATS supports French and international clients with:

. navigating regulatory changes in France;

. structuring transactions and projects;

. managing disputes and mediation processes;

. developing practical, risk-based legal strategies.

[1] https://www.legifrance.gouv.fr/eli/loi/2026/5/26/2026-403/jo/texte

As is currently the case in the canton of Zurich and the cities of Lausanne and Lucerne, several cantons and cities already have a right of first refusal in place or are planning to introduce one for the benefit of the public sector. In doing so, they are influencing the real estate market – in some cases selectively, but increasingly also in a more comprehensive manner

Definition and Purpose of the Right of First Refusal

The local authority’s right of first refusal enables local authorities to acquire land on a priority basis when it is put up for sale, in order to fulfil public duties such as housing construction or infrastructure projects. It serves the purposes of land policy and urban development.

Practical Examples

In the city of Lucerne, the right of first refusal has been incorporated into the housing policy debate. The City Council intends to create or commission the construction of additional, and above all, social housing in the coming years. Preparations are currently underway in the political arena to introduce a municipal right of first refusal for properties.  The City Council’s counter-proposal to an initiative by the SP City of Lucerne provides that the city may enter into the purchase contract in the event of sales of larger properties, particularly where the vacancy rate is 1.5% or lower. The referendum on this will take place on 14 June 2026. If approved, the right of first refusal would take on significantly greater importance in the city of Lucerne in future.

The city of Lausanne already has concrete experience in this area: there, the right of first refusal has been exercised in at least 14 cases to date. Even if this figure appears small in relation to around 500 transactions, it shows that the local authority can use it to influence the property market. In the cases concerned, private or commercial prospective buyers were also bypassed.

Right of First Refusal in Private Law

In private law, too, the right of first refusal is a well-known security instrument in connection with the acquisition of real estate and residential property. It may be agreed by contract and must be notarised to be valid (Art. 216(2) of the Swiss Code of Obligations). The right of first refusal may be exercised if the property is sold or if a legally equivalent transaction takes place (Art. 216c para. 1 CO).

Impact on the Property Market

Given current developments, the right of first refusal is taking on greater significance. Its introduction can have a lasting impact on existing market and power dynamics in favour of the public sector. The fact that only a few public bodies can exercise the right of first refusal and that these possess considerable financial resources gives them a clear advantage. Given the ongoing housing shortage and political initiatives to promote affordable housing, the already challenging competitive situation in the property market is being further affected.

For any questions relating to the sale or purchase of a plot of land or a flat, and in particular regarding rights of first refusal, the attorneys-at-law of Pilatushof AG will be happy to assist you.