European Union: Inward/ Foreign Investment

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.

The tax reform that came into effect in January exemplifies how legal change can simplify, clarify, and enhance certainty without fundamentally altering the system. The reform addressed key areas where uncertainty had previously existed, particularly in relation to corporate tax treatment and compliance expectations, providing clarity on grey areas that could create doubt for companies operating on the island. Rather than overhauling the entire tax system, the reform focuses on certainty and reliability.