The European Union has adopted its 18th package of restrictive measures in response to Russia’s ongoing war of aggression against Ukraine. This latest package, among the most comprehensive to date, targets key sectors of the Russian economy and introduces new measures to prevent circumvention and ensure accountability.

Key Elements of the 18th Sanctions Package:

Energy Sector: The EU has lowered the price cap on Russian crude oil from $60 to $47.6 per barrel, aligning it with global market prices. A dynamic mechanism has been introduced to adjust the cap automatically. An additional 105 vessels linked to Russia’s shadow fleet are now banned from EU ports, bringing the total to 444. Sanctions now target companies and individuals involved in circumventing the oil price cap, including a major Indian refinery and a vessel captain. Banking and Trade: New restrictions have been imposed on Russian financial institutions and trade entities. The EU has introduced an import ban on refined petroleum products made from Russian crude oil, even if processed in third countries—excluding Canada, Norway, Switzerland, the UK, and the US. Military-Industrial Complex: Sanctions target entities supplying or supporting Russia’s military operations, including those involved in the production and transport of military equipment. Accountability Measures: The EU has listed 55 new individuals and entities (14 individuals and 41 entities), bringing the total number of individual listings to over 2,500. These include actors responsible for crimes against Ukrainian children and cultural heritage. Belarus: Complementary measures have also been adopted against Belarus in light of its continued support for Russia’s war efforts.

This package underscores the EU’s unwavering commitment to supporting Ukraine and increasing pressure on the Kremlin until a just and lasting peace is achieved.

Tax Reduction in Madrid: Inheritances and Donations

Since 2019, the Community of Madrid has continued with tax reductions in all kinds of areas such as personal income tax (IRPF), rentals, and, once again, the Inheritance and Gift Tax (ISD). A total of 32 reductions, which places the Spanish capital as a leader in the Autonomous Fiscal Competitiveness Index in Spain (an independent index prepared by the Foundation for the Advancement of Liberty and the US Tax Foundation).

As part of the taxes ceded by the State, the Autonomous Community of Madrid has approved that, starting from July 1, 2025, when the law comes into force, gifts and inheritances between nephews/nieces and uncles/aunts (Group III) will see their ISD bonus increase from 25% to 50%. This regulation, in addition to increasing the tax bonus, also simplifies the requirements for accessing these benefits.

MAIN NOVELTIES

1. Extension of Bonuses.

The new regulation raises the bonus on the ISD tax liability to 50% for taxpayers in kinship group III, which includes:

Second and third-degree collateral relatives by blood (brothers/sisters, uncles/aunts, and nephews/nieces) Second and third-degree collateral relatives by affinity (brothers-in-law/sisters-in-law, uncles/aunts by marriage, and nephews/nieces by marriage) Ascendants and descendants by affinity (parents-in-law, sons-in-law, and daughters-in-law)

Both mortis causa acquisitions (inheritances) and inter vivos acquisitions (gifts) receive this bonus, which was previously 25%. Although it is still far from the 99% bonus maintained by groups I and II (parents, children, and spouses).

2. 100% Bonuses for Small Gifts.

The tax liability on gifts of up to 1,000 euros, regardless of the degree of kinship, receives a total bonus on the tax liability. However, this bonus can only be applied once every 3 years between the same donor and donee.

Furthermore, the submission of self-assessment will not be mandatory when the donated asset does not require registration.

3. Formal Simplification.

From July 1, the requirements regarding public documents are made more flexible:

It will only be mandatory when the taxable base of the gift exceeds 10,000 euros (provided by the law does not require it for its validity). Gifts made in a private document can be elevated to a public document within a voluntary self-assessment period without losing the tax benefit.

DISCLAIMER: This document has been prepared for internal professional development purposes only. It is also exceptionally addressed, as a courtesy, to a circle of selected contacts for information purposes. Reproduction and distribution to third parties is prohibited. It cannot under any circumstances be considered as legal, fiscal, accounting or any other kind of professional opinion. Grimaldi Alliance is at disposal for any further information and/or request and/or clarification.

This document aims to provide a thorough examination of the European Union’s approach to Foreign Direct Investment (FDI) screening, with a particular focus on presenting the diverse perspectives of EU institutions on the key topics involved. It highlights how the European Commission, the European Parliament, and the Council differ and converge on the objectives, scope, procedures, and powers related to FDI screening, thereby illustrating the ongoing political dialogue shaping the final regulatory framework.

The first section explains the driving forces behind the EU’s increasing emphasis on coordinated FDI screening. It identifies growing concerns over the potential risks that foreign investments may pose considering both the external geopolitical context and the internal difficulties. Following this, the document presents a detailed timeline outlining the development of the FDI screening initiative and the stances of the EU institutions.

The core of the document examines the main issues related to FDI screening and the differing views between the institutions that will be discussed during the trilogue, reflecting broader debates between national sovereignty and EU-level coordination within this framework. It begins by defining the scope of national screening mechanisms, clarifying which types of investments and sectors are subject to review. It then explores the procedural aspects of these mechanisms. The attention is then to the criteria used for risk assessment.

The document also discusses the rules for multi-jurisdictional transactions, where investments span multiple Member States. Then, central to the EU’s approach is the cooperation mechanism established to facilitate information sharing and joint assessments among Member States. Finally, the willingness of the Parliament to expand the role and powers of the European Commission is examined.

In conclusion, the document summarises the balance that must be struck between protecting security and public order and preserving the EU’s attractiveness to foreign investors, highlighting ongoing debates among institutions.

At the end, a table summarises the positions of various EU institutions on the FDI screening proposal, providing insight into the political dynamics shaping the final regulatory framework.

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BRUSSELS AIMS FOR THE STARS: THE EU SPACE ACT UNVEILED

On 25 June 2025, the European Commission presented the proposal for a regulation known as the EU Space Act, taking the first concrete step toward creating a unified internal market for space activities.

The initiative seeks to replace the current patchwork of national laws—comprising thirteen different regulatory systems—with a single European legal framework. The goal is to boost the EU’s global competitiveness, particularly in comparison with the United States and China.

The proposed Regulation is built on three core pillars: security, resilience, and sustainability.

Security: The Act introduces mandatory satellite tracking and disposal plans, addressing the growing issue of orbital pollution. Equally important are the new obligations concerning the use of collision avoidance services. For businesses, this means greater operational predictability, fewer in-orbit incidents, and significantly lower costs from corrective manoeuvres. Resilience: The Act requires risk assessments across the full lifecycle of space missions, with strong emphasis on cybersecurity and electronic interference. This marks a regulatory breakthrough aimed at preventing blackouts and malfunctions while tackling a rising threat—space-related cyberattacks, which cost the industry around €1 billion annually. Additional measures are introduced to ensure the continuity of critical data services in sectors such as telecommunications, defence, and transport. Sustainability: The third pillar establishes a set of rules to promote low-impact technologies and extend satellite lifespans. The regulation mandates lifecycle assessments for all missions and foresees the creation of shared databases to track and reduce environmental impact. Emerging technologies—such as in-orbit servicing and debris removal—are also incentivised. The objective is twofold: lowering costs while making missions more efficient and sustainable.

In case of violations, companies may face fines of up to 2% of their global annual turnover or an amount equal to twice the profits gained or losses avoided through the breach. There are, however, exceptions. The regulation does not apply to satellites already in orbit, nor to those used exclusively for military or national security purposes.

The Act also addresses operations beyond EU borders. Non-European companies operating in the EU market must appoint a legal representative within the Union and comply with equivalent requirements—unless their country of origin is recognised as offering comparable oversight (as is the case with the United States).

CONTEXT

The strategic importance of the space sector for the EU has been long recognised, as highlighted in both the Letta and Draghi reports. This direction has since been reaffirmed in the Competitiveness Compass and the Commission’s 2025 Work Programme.

The need for such a measure also emerged in two joint communications: the EU Approach for Space Traffic Management and the EU Space Strategy for Security and Defence. These communications responded to Member States’ calls for a coherent, stable, and harmonised regulatory framework capable of fostering a true internal market for space—one that can drive innovation and investment.

Pressure for EU-level action has come not only from Member States, but also from real-world developments in orbit. In recent years, there has been an exponential rise in so-called "constellations" of low-orbit satellites, led by Elon Musk’s Starlink. These systems offer faster, more reliable connections—but at the cost of increasing space congestion. With over 10,000 satellites already in orbit and 50,000 more expected by 2030, the volume of debris is also growing rapidly. This has prompted the EU’s clear objective: curb the surge in space debris and tighten oversight of sector operators before the situation becomes unmanageable.

Yet the issue is not just technical. Space is now both congested and contested—prompting the EU to adopt a firmer regulatory stance. For years, the United States and China have competed to shape global space governance, rallying blocs of aligned countries. The US spearheaded the Artemis Accords—a set of non-binding principles for peaceful cooperation in space exploration, endorsed by most EU Member States. Meanwhile, China has proposed its own framework for peaceful space use, aiming to build a parallel alliance of partner countries.

Adding to the geopolitical complexity are Europe’s own vulnerabilities, exposed during the war in Ukraine. Elon Musk’s satellite network played a crucial role in maintaining communications during the conflict, highlighting the risks of relying on non-European private infrastructure. This dependence triggered alarm bells in Brussels, reinforcing the need for the EU to strengthen its strategic autonomy in space.

In short, the confluence of rapid sectoral developments, intensifying global competition, and fragmented national regulations has made the EU’s initiative both timely and necessary. By establishing its own comprehensive framework, the Union is seeking not only to regulate its internal market, but also to shape the rules of the game on the global stage.

Backing this ambition are strong political signals. French President Emmanuel Macron, among others, has called for significantly increased investment in the space sector, urging the next EU budget to allocate at least €60 billion to space policy. Underscoring France’s determination, the government has also increased its stake in Eutelsat—seen as the most credible European alternative to Starlink.

ITALY TAKES OFF

On the same day the EU Space Act was presented, Italy enacted Law No. 89 of 13 June 2025, introducing—for the first time—a comprehensive national framework governing outer space and both public and private space activities.

Entitled "Provisions on the Space Economy," the law places Italy among the few countries worldwide with a dedicated space law. It addresses geopolitical, technological, and environmental challenges with a bold vision and advanced legal instruments.

The text clearly defines space activities and requires prior authorisation for all operators, including Italian entities active abroad. It sets firm requirements on national security, cybersecurity, environmental sustainability, debris management, and insurance coverage. Implementation and coordination are entrusted to a structured institutional setup involving the Italian Space Agency (ASI), COMINT, and the Prime Minister’s Office.

The law also governs the registration of space objects, sets liability rules for operators and the state, and establishes procedures for revoking or suspending authorisations on security grounds. Notably, it includes dedicated rules for public procurement in the space sector, aligning with the Public Contracts Code and opening access to innovative start-ups and SMEs.

Through this dual legislative push, both Italy and the EU are positioning themselves as key players in the new space era. The result: tangible new opportunities for Italian and European businesses, now able to operate within a clearer, more stable, and harmonised legal environment.

SPAIN’S PLAN TO INCENTIVISE SAVINGS AND INVESTMENT

The CNMV (National Securities Market Commission) has highlighted the need to make European savings accounts more attractive both fiscally and operationally. They encourage offering tax advantages to incentivise long-term investment and direct savers’ money towards key sectors like digitalization and sustainability.

Spain, along with other European countries, is promoting a Competitiveness Laboratory to establish a label for investment products that provide tax benefits. However, since taxation is a national competence, the European Commission can only make suggestions or recommendations.

The CNMV also emphasizes the need to improve financial education so that citizens can access more profitable investment options beyond bank deposits. Additionally, measures are being prepared to strengthen capital markets and reduce burdens for fund managers.

In this regard, Inverco and the CNMV have joined forces to implement key European and OECD proposals for funds and pensions, welcoming additional tax incentives. This was discussed at the 2025 General Assembly of Inverco held in Madrid on June 04-06-2025, specially how to boost savings, investment in funds and pensions.

Nationwide, a key factor would be to maintain the current regulatory framework for funds while welcoming extra tax advantages to attract new investment flow. On the European side, the upcoming measures should eliminate national barriers to the cross-border commercialization of founds.

Moreover, the OECD made a report in which recommends to take action and promote measures such as boosting company and individual pension plans while considering contentious issues like removing the ten-year liquidity cutoff in pension vehicles. 

SOURCES:

Ángel Alonso, Madrid, 04-06-2025 “la CNMV insiste en que las cuentas de ahorro europeas sean ‘fiscalmente atractivas y sencillas operativamente’” Funds Society, 04-06-2025 “Inverco y la CNMV suman fuerzas para materializar las propuestas marcadas por Europa y la OCDE en fondos y pensiones, y dan la bienvenida a incentivos fiscales añadidos.”

COMMISSION UNVEILS €193 BILLION EU BUDGET FOR 2026

On 4 June, the European Commission has put forward its draft EU annual budget for 2026, amounting to €193.26 billion in commitments, complemented by €105.32 billion from NextGenerationEU. Building on the mid-term review of the EU’s 2021–2027 long-term budget, the proposal aims to address ongoing global and regional challenges, such as the energy crisis and rising geopolitical tensions.

The 2026 draft budget aligns with the new Commission priorities by allocating funds to key flagship initiatives, including the Competitiveness Compass, the Clean Industrial Deal, the Union of Skills, and the EU Startup and Scaleup Strategy. It also introduces simplification measures through new Omnibus proposals, aiming to streamline EU funding and implementation processes.

BACKGROUND

The draft EU budget for 2026 includes both the expenditure covered by the long-term budget ceilings, financed through the EU’s own resources, and additional spending under the NextGenerationEU instrument, which is financed through borrowing on the capital markets.

For the core EU budget, two figures are presented for each programme: commitments and payments. Commitments represent the amounts that can be legally agreed upon in contracts during the year, while payments refer to the actual disbursements made within the same period. All figures are expressed in current prices.

NEXT STEPS

The European Parliament and the Council must formally adopt the 2026 budget before year-end.

BUDGET BREAKDOWN

Below is an overview of the main budget priorities and the amounts allocated to each:

Agriculture and Fisheries: €54.6 billion

€53.8 billion – Common Agricultural Policy

€0.8 billion – European Maritime, Fisheries and Aquaculture Fund

Regional Development and Cohesion: €42.09 billion Social Cohesion and Employment: €14.51 billion (through the European Social Fund Plus) External Action and Global Partnerships: €15.51 billion

€10.11 billion – NDICI – Global Europe

€2.20 billion – Instrument for Pre-Accession Assistance (IPA III)

€0.50 billion – Growth Facility for the Western Balkans

€1.93 billion – Humanitarian Aid (HUMA)

Ukraine Support: €10.59 billion

€3.89 billion – Grants under the Ukraine Facility

€6.70 billion – Loans

Research and Innovation: €14.12 billion

€12.97 billion – Horizon Europe (Includes funding for the European Chips Act)

Strategic Investments: €4.59 billion

€3.02 billion – Connecting Europe Facility (cross-border infrastructure)

€1.00 billion – Digital Europe Programme

€299 million – InvestEU

European Space Programme: €2.33 billion Resilience and EU Values: €15.13 billion

€4.3 billion – Erasmus+

€396 million – Support for artists and creators

€332.6 million – To promote Justice, rights, and values

Environment and Climate Action: €2.18 billion

€802.9 million – LIFE programme (climate action)

€1.26 billion – Just Transition Fund

Border Protection: €2.69 billion

€1.2 billion – Integrated Border Management Fund (IBMF)

€1.13 billion – Frontex (European Border and Coast Guard Agency)

Migration: €2.32 billion

€2.08 billion – Support for migrants and asylum seekers

Defence: €1.99 billion

€1.0 billion – European Defence Fund (EDF)

€251.3 million – Military Mobility

Single Market Functioning: €1.02 billion

€622 million – Single Market Programme

€207 million – Anti-fraud, taxation, and custom

LINKS FOR MORE INFO

2026 annual budget to fund EU priorities addressing global challenges: link

EU budget 2026: Providing crucial funding for EU priorities in times of global volatility: link

Questions and Answers about the Draft Annual Budget 2026: link

The UK immigration system: under or out of control?

The UK Government recently released “Restoring control over the immigration system: White Paper.” A ‘White Paper’ is a non-binding document issued by a Government to provide notice of its intentions to change policy or publish legislation. This White Paper addresses changes to the UK’s immigration system. Among the many, some controversial, changes, were significant changes for businesses in the UK which hire foreign workers. The White Paper includes proposals to:

Lift the level for skilled workers up to (Regulation Qualification Framework)  RQF 6 and above, and to lift salary thresholds;A degree-level qualification will now be required for a Skilled Worker visa, essentially repurposing this route to address graduate-level roles. occupations below RQF 6 must be listed on the new Temporary Shortage List to provide time limited access to the Points-Based immigration system;The Immigration Salary List will be replaced by the new Temporary Shortage List, over which we have little detail regarding how ‘shortages’ will be identified. restricting employers’ sponsoring skilled visas if they are not ‘committed’ to increasing domestic skills training;The Government will require employers in industries which heavily recruit overseas to demonstrate how they are committed to creating the skill base they need within Britain. increase the Immigration Skills Charge by 32%; andThe already expensive Immigration Skills Charge increasing will affect the economics of hiring lower-paid workers. increase language requirements for Skilled Workers from B1 to B2 (Independent User) and introduce a new A1 (Basic User) requirement for all dependants of workers.Delays to planned hires can be expected while waiting for new hires and their dependents reaching the requisite level of English.

These non-binding proposals are subject to approval via the UK’s political processes. Whether or not all of the proposals mentioned pass, it is likely that the immigration system in the UK is likely to tighten across the next four years of this Government’s tenure. The Labour Government faces threats from other political parties with strong anti-immigration messaging and this White Paper may be seen as the Government’s defence against them. The Government and the Prime Minister have been accused of lacking a clear ideology, or indeed having any good ideas, about how to improve the quality of life in Britain. The strength of these proposals for the Government lies in their political value – the extent to which politics continues to foster anti-immigrant sentiment in the UK is likely the extent to which we will see these changes come to pass.

An interesting counterpoint to this is the news that the new UK-EU deal may include a ‘youth experience scheme.’ Under the proposals, people between 18 and 30 years old will be able to work throughout the EU and UK for up to two years.

More than anything else, this likely signals the ideological confusion at the heart of the British Government – commercial certainty is unlikely to materialise any time soon.

BANKING AND FINANCE

The Venezuelan Central Bank (VCB) established the interest rates applicable to the obligations derived from employment relationships (59.36% and 47.68% - March 2025) and to operations with credit cards (60.00% annual maximum lending rate and 17.00% annual minimum lending rate April 2025). (Official Gazette of 04/14/2025. Official Notice. Entry into force: Upon publication in the Official Gazette).

The Ministries of the Popular Power for National Trade and for Electric Energy issued the following resolutions:

Joint Resolution No. 006/2025 and 013/2025 that establishes the technical regulations on energy efficiency labeling of refrigerating and freezing appliances for household use. Joint Resolution No. 007/2025 and 014/2025 that establishes the technical regulations on energy efficiency labeling of air conditioners.(Official Gazette of 04/02/2025. Entry into force: As from six (6) months following its publication in the Official Gazette).

TAX

The Ministry of the Popular Power for Economy and Finance resolved to delete Complementary Note 3 of Chapter 87 of article 37 of Decree No. 4.944, dated 04/24/2024, published in Official Gazette No. 6.804 Extraordinary of 04/25/2024, through which the Schedule of Customs Duties was issued. Therefore, in the case of the importation of motor vehicles and chassis with engine and of motor vehicles with no engine, the requirement of Conformity of the Mobile Source Emission Certificate and of Mobile Source Emission Certificate, respectively, was removed. (Official Gazette of 04/14/2025. Resolution No. 010/2025. Entry into force: Upon publication in the Official Gazette).

MISCELLANEOUS

The Ministry of the Popular Power for National Trade issued Resolution No. 019/2025 that establishes the technical regulations on raw material for footwear. (Official Gazette of 04/04/2025. Entry into force: As from six (6) months following its publication in the Official Gazette).

The Ministries of the Popular Power for Productive Agriculture and Lands, for Defense, for Hydrocarbons, for Internal Affairs, Justice and Peace, and for Transportation issued a joint resolution that establishes the control mechanisms for carriers and end users of mineral or chemical fertilizers in the national territory. (Official Gazette of 04/23/2025. Joint Resolution DM/No. 031/2025, DM/No. 059115/2025, DM/No. 003-2025/2025, DM/No. 018/2025, DM/No. 0020/2025. Effectiveness: From 04/01/2025 up to and including 03/31/2026).

The Ministry of the Popular Power for Transportation established the minimum and maximum rates for urban transportation service. Likewise, it established the maximum official rate for suburban routes nationwide to be charged by the providers of the public service of ground passenger transportation. The Official Request published in Official Gazette of 11/22/2024 was revoked. (Official Gazette of 04/24/2025. Official Request and Resolution No. 021. Entry into force: Upon publication in the Official Gazette).

Grimaldi Alliance (GA), the international law and tax firm with 12 offices across Italy and a direct presence in New York, Lugano, Brussels, London, and Paris – supported by a network of professionals operating in over 70 jurisdictions and led by Managing Partner Francesco Sciaudone - is further strengthening its presence in Switzerland through the addition of the law firm Germann Avocats.

Founded in Geneva in 2000, Germann Avocats is a prominent player in the Swiss legal market, boasting an experienced team that advises private clients, SMEs, start-ups, major Swiss and international companies, public institutions, and non-governmental organizations. Its areas of expertise include corporate, administrative, and contract law, data protection, unfair competition, public procurement, migration law, intellectual property, M&A transactions, as well as litigation and mediation.

“With the addition of Germann Avocats, we aim to consolidate GA’s presence in Switzerland, now extending beyond Lugano to include Geneva and Zurich, in both legal and tax matters. Together with Christophe Germann and his team – and our Gianvirgilio Cugini in Lugano – our goal is to provide comprehensive full-service support for the Swiss market, in Lugano, Zurich, and Geneva, in Italian, French, and German,” said Francesco Sciaudone, Managing Partner of GA.