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On May 19, 2026, the European Parliament adopted the draft of the new FDI Screening Regulation. With this draft, the EU is reforming its system for screening foreign direct investments (FDI). On February 10, 2026, the Council of the European Union had confirmed the draft of the new Regulation (2024/0017 (COD)) and officially forwarded it to the Parliament. The Regulation is intended to fully replace the previous Regulation (EU) 2019/452.

On 4 May 2026, the European Commission published its long-awaited simplification review of the EU Deforestation Regulation (hereinafter, "EUDR"), as mandated under Article 34(1a) of the December 2025 amendment (Regulation (EU) 2025/2650). In addition, the Commission published a  package of non-legislative measures consisting of updated Frequently Asked Questions (hereinafter “FAQ”), updated Guidelines and a new draft Annex I, which is currently openfor feedback. The Commission confirmed that there will be no further changes to the main text of the Regulation, and that there will be no further delay of the EUDR.

Following publication in the Federal Law Gazette onMarch 16, 2026, the umbrellaact for critical infrastructure protection (“KRITIS Umbrella Act”,“KRITISDachG”) entered into force the following day. Germany has therebyimplemented the Critical Entities Resilience (“CER”) Directive (EU) 2022/2557with a delay of just under a year and a half. An earlier attempt atimplementation failed due to the collapse of the traffic-light coalition andthe resulting new elections, which caused the draft bill to fall victim toparliamentary discontinuity.

The KRITISDachG supplements the cybersecurityprovisions in the NIS2 Implementation and Cybersecurity Strengthening Act(“NIS2UmsuCG”) with regulations on the physical protection of criticalinfrastructure, thereby establishing uniform federal minimum requirements forthe first time. Following the attack on Berlin’s power infrastructure, thedraft law became politically contentious. However, no significant changes weremade compared to the previous government’s draft. The Federal Ministry of theInterior (“BMI”) estimates that approximately 1,700 critical facilities mustmeet all resilience requirements.