Germany: Government, Public Sector

The June edition of the BUREN German Desk Newsletter examines critical developments in foreign investment screening, M&A transactions, and regulatory compliance for German companies operating in the Netherlands.

Anna-Catharina von Girsewald and Dr. Carsten Bormann examine the profound changes in the EU's regulatory environment and their impact on foreign direct investment and M&A activities. The article explores how increasing geopolitical tensions and a shift toward a more continental European approach are reshaping the investment landscape, while European economies simultaneously face pressure to accelerate growth in key sectors like defense, technology, and infrastructure.

European economies face unprecedented pressure from geopolitical tensions and the need to accelerate growth in critical industries like defense and emerging technologies. This comprehensive analysis examines how EU regulation functions both as a constraint on transaction execution and as a strategic instrument of industrial policy, exploring the evolving regulatory landscape shaping foreign direct investment and M&A activity.

On 10 July 2027 – one year from now – the Regulation (EU) 2024/1624 of the European Parliament and of the Council of 31 May 2024 (AMLR) and the Regulation (EU) 2024/1620 of the European Parliament and of the Council of 31 May 2024 (AMLAR)...

The German Federal Constitutional Court is set to rule on the constitutionality of Section 8c of the Corporate Tax Act, which mandates complete forfeiture of tax losses when more than 50% of a corporation's shares change hands. The Hamburg Fiscal Court has supplemented its 2017 referral order with new details about a specific case where losses would be forfeited solely due to share acquisition, raising fundamental questions about whether this provision violates Germany's constitutional principle of equality

Germany's Federal Government has introduced a draft bill that explicitly places fusion facilities—including laser fusion plants—under the Radiation Protection Act rather than the more stringent Atomic Energy Act.

Germany is positioning itself to become Europe's dominant military power through an extensive defense modernization program that will run through 2039. With defense spending more than doubling since 2020 and investments spanning space, AI, drones, and long-range capabilities, Berlin's military ascendance creates both opportunities and tensions with traditional European defense leaders like France and Poland.

Germany's financial regulator Bafin is undertaking a major structural reorganization to intensify supervision of anti-money laundering, counter-terrorism financing, and cyber risks across the financial sector. The authority is creating a new specialized Anti-Financial-Crime division and reallocating approximately 30 additional positions to high-risk areas, signaling heightened scrutiny for financial institutions. What does this mean for compliance frameworks and audit preparedness in the German banking sect

The Court of Justice of the European Union has ruled on the scope of EU sanctions prohibiting the broadcasting of content from listed Russian media outlets, addressing whether the term 'operator' extends beyond commercial entities to include donation-funded platforms and individuals. The judgment clarifies critical questions about personal liability under Regulation 833/2014 and the relevance of broadcast duration in determining compliance obligations.

Germany is positioning itself to become Europe's dominant military power through an extensive defense modernization program that will run through 2039. With defense spending more than doubling since 2020 and investments spanning space, AI, drones, and long-range capabilities, Berlin's military ascendance creates both opportunities and tensions with traditional European defense leaders like France and Poland.

Die öffentliche Hand finanziert zunehmend soziale Leistungen durch Dritte, doch ein sozialer Zweck schließt staatliche Beihilfen nicht aus. Die neue EU-Guidance zeigt, wie Kommunen und öffentliche Unternehmen soziale Maßnahmen beihilfenrechtskonform gestalten können – von Wohnraum über Weiterbildung bis zur energetischen Sanierung.

The European Commission has published its review of the Foreign Subsidies Regulation (FSR), addressing widespread concerns about the regime's disproportionate compliance burden on M&A deals and procurement procedures. While the EC maintains the instrument is "fit for purpose," stakeholders and independent studies reveal significant administrative challenges, with only 1% of notified M&A deals warranting in-depth review and proposed reforms falling short of the fundamental redesign many had requested.