Local officials in France get clearer legal shield for investment decisions

A French law passed in December 2025 reformed the conflict-of-interest offense to protect local elected officials from prosecution for simply performing their duties, aiming to remove a major barrier to local investment. The reform clarifies that representing a public interest in multiple bodies is no longer a crime. The law, part of a broader statute on the status of local elected officials, specifies that an offense requires a real, knowing bias and that officials appointed to represent their community in a public company are not automatically considered conflicted. France's highest court has already applied this more favorable definition retroactively to pending cases. Officials must still abstain from votes involving contracts with companies they administer and remain exposed to prosecution for personal gain. The authors urge courts to apply the reform in spirit and encourage officials to document their decisions, arguing that fear of prosecution should not prevent public construction projects.