Misuse of the EU budget and evasion of taxes, duties and levies has increased significantly in recent years. This should be prevented to protect the EU-taxpayer. The European Anti-Fraud Office (OLAF) was established to investigate fraud, corruption and other criminal acts affecting the EU’s financial interests. For this purpose, it can conduct investigations both inside and outside the EU institutions and bodies. In its final investigation report, OLAF makes recommendations to the European institutions or to the competent national authorities of the EU Member States as to whether legal, financial, disciplinary or administrative measures should be taken.

Following the successful acquisition by FSN Capital V in the MHP Solution Group and its German subsidiaries, BLOMSTEIN has taken over the Foreign Direct Investment application for the indirect acquisition.

Digital information and online communication are becoming more and more important. As a result, people are increasingly aiming to protect their IT systems against attacks. Cybersecurity considerations play a special role in governmental restrictions on foreign direct investments (FDI) to protect against foreign interference in key infrastructure or security-related sectors. In Germany, this has led to increased scrutiny of M&A transactions by the German Federal Ministry for Economic Affairs and Energy (FMEA) – not limited to companies active in key areas of software development or IT security.

The digitalisation of global trade is constantly expanding. In the 21st century data will become the most important commodity, according to a report in the German newspaper “Handelsblatt”. The continuing development of 3D printing technology makes it possible to send, instead of the actual goods, data that can then be used to print the goods directly at the receiving end. The more the digitisation of trade develops, the more important cybersecurity products are becoming.

The World Bank Group (WBG) published its Sanctions System Annual Report Fiscal Year 2020 (FY20), covering the Bank’s actions from 1 July 2019 to 30 June 2020. According to the Annual Report, the Integrity Vice Presidency has started 46 new investigations and submitted 26 cases and 22 settlements to the Office of Suspension and Debarment (OSD). The OSD is headed by the Chief Suspension and Debarment Officer (SDO), who has temporarily suspended 30 firms and sanctioned 19 respondents via uncontested determinations. In FY20, seven firms and individuals were sanctioned by the Sanctions Board in six decisions arising from contested cases that can be found here.

The latest edition of the journal of export controls and sanctions WorldECR has just been released. BLOMSTEIN lawyers Florian Wolf and Leonard von Rummel have contributed an article about the Franco-German military cooperation with regard to export control matters.

BLOMSTEIN advised the German Federal Ministry of Economic Affairs and Energy on a public contract in the context of an FDI application.

On 17 July 2020 2020, the Foreign Trade and Payments Act (Außenwirtschaftsgesetz) entered into force (AWG-Amendment) , resulting in further tightening of investment controls. The amendment has the aim to implement the EU-Screening-Regulation 2019/452 (EU-Screening-Regulation) and corresponds to Germany’s industrial strategy 2030 (Industriestrategie 2030), which was announced in November 2019 by the Federal Minister for Economics Peter Altmaier (Bundeswirtschaftsminister). The AWG-Amendment is accompanied by an adjustment to the Foreign Trade and Payments Ordinance (Außenwirtschaftsverordnung, AWV), which was hastily initiated in the wake of the COVID-19 pandemic and has since come into force. A second amendment with the aim of harmonizing the AWV with the new amendment to the Foreign Trade and Payments Act (AWG) is expected for summer 2020.

With the 15th amendment of the Foreign Trade and Payments Ordinance (AWV), the Federal Ministry for Economic Affairs and Energy will soon extend its control over acquisitions of German companies by EU foreign companies. The amendment is perceived as the Federal Government’s direct reaction to the COVID-19 crisis, due to its concern in large part to protect the healthcare sector. The case of the Tübingen-based company CureVac, involving a US purchaser and raising the question of the right of prohibition, may have also contributed to this development. The 16th amendment to the AWV is expected to comprehensively expand and adapt investment control in foreign trade law. It is aimed at uniformly implementing Regulation (EU) 2019/452 (*_EU Screening Regulation*_), which came into force in April 2019, and the amendment to the Foreign Trade and Payments Act (AWG) adopted already by the Cabinet on 8th April 2020. Since the latter remains under discussion in the committees of the Bundestag, the Federal Ministry for Economic Affairs and Energy has brought forward what it considers to be particularly urgent adjustments.

Since the Federal Ministry of Justice and Consumer Protection presented a new draft of the corporate sanctions law (“Gesetz zur Stärkung der Integrität in der Wirtschaft”) on 22 April 2020, debate has flared up again about how to deal with legal violations within companies. In the past, associations and experts urged that the main objectives of the new law must be to promote compliance measures and transparency around violations within companies internally.