Recent Changes in the German Investment Screening Mechanism in Light of the EU Screening Regulation

In 2020 and 2021, the German investment screening laws, namely Außenwirtschaftsgesetz (AWG) and Außenwirtschaftsverordnung (AWV) were again subject to considerable reform induced by new legislation at the European level and a reshaped industry policy agenda at the national level. This article critically reviews the most significant changes brought about by one law (Erstes Gesetz zur Änderung des Außenwirtschaftsgesetzes und anderer Gesetze) and three ordinances (Fünfzehnte, Sechzehnte und Siebzente Verordnung zur Änderung der Außenwirtschaftsverordnung) and provides an overview of the reformed screening procedure. Although claims in this direction have been made, neither the reform nor the underlying Screening Regulation (EU) 2019/452 have altered the objective of review – the protection of public order or security – or bar for governmental intervention – actual and sufficiently serious danger. Both these were not ‘overwritten’ by secondary law and continue to be determined by the pertinent jurisprudence of the Court of Justice of the European Union. Notwithstanding this, the reform has considerably widened the ‘sensitive sectors’ in which pertinent investments must be notified to and cleared by the authorities. ‘Gun jumping’ is prohibited and parties moving forward nonetheless risk criminal prosecution. Reform has also standardised the deadlines for governmental intervention and brought about procedural clarity. What the many and frequent changes reveal on a more fundamental level is a progressing politicisation and securitisation of investment screening law.

Net Present Value, Duration, and CAPM in Light of Investment Theory: A Comment on Kruk

In her paper “Corporate Risk Evaluation in the Context of Austrian Business Cycle Theory” recently published in this journal, Joanna Kruk aims to investigate how artificially low interest rates resulting from central bank intervention distort individual investment appraisals and ultimately result in both entrepreneurial misjudgment and resource-wasting malinvestment, fueling the business cycle. She identifies entrepreneurs’ net present value calculations, supposedly unadjusted for risk, as a major issue and suggests adjusting those calculations for risk via both the duration method and the Capital Asset Pricing Model to mitigate the distorting effects. Her argumentation is, however, trapped in neoclassical reasoning and is adversely affected by several misconceptions of the net present value criterion. This comment seeks to reveal those fallacies and explain how to address uncertainty when using net present value calculations to make those calculations part of the solution rather than part of the problem of entrepreneurial misjudgment. The findings are derived from German investment theory rooted in the Austrian school of thought, meaning that they differ compared to those of neoclassical finance theory.

Prozessverträge im Investmentrecht

This book answers the question how to implement procedural contracts into the contractual structure of German investment funds. In practice, procedural contracts are primarily concluded where there is already a contractual relationship. The thesis thus analyzes the contractual relations constituting an investment fund. Subsequently, it presents the special requirements the law of investment funds holds for procedural agreements. It thereby shows that the protection for investors under the law of investment funds impacts the validity of procedural contracts. In this manner, the book fills a gap in research and offers numerous insights especially for legal scholars, fund initiators, attorneys and professional investors.

Revenants of the German Empire

This book addresses the various ways in which Colonial Germans attempted to cope with the loss of the German colonies after the Treaty of Versailles in 1919. The German colonial advocates who are the focus of this monograph comprised not only those individuals who had been allowed to remain in the mandates as new subjects of the Allies, but also former colonial officials, settlers, and missionaries who were forcibly repatriated by the mandatory powers after the First World War. These Kolonialdeutsche (Colonial Germans) had invested substantial time and money in German imperialism. This work places particular emphasis on how colonial officials, settlers, and colonial lobbies made use of the League of Nations framework, and investigates the involvement of former settlers and colonial officials in such diplomatic flashpoints as the Naturalization Controversy in South African-administered Southwest Africa, and German participation in the Permanent Mandates Commission (PMC) from 1927 to 1933. The period of analysis ends in 1933 with an investigation of the involvement of one of Germany’s former colonial governors in the League of Nations’ commission sent to assess the Manchurian Crisis between China and Japan. This study revises standard historical portrayals of the League of Nations’ form of international governance, German participation in the League, the role of interest groups in international organizations and diplomacy, and liberal imperialism. In analyzing colonial German investment and participation in interwar liberal internationalism, the project also challenges the idea of a direct continuity between Germany’s colonial period and the Nazi era.

Introduction

The introduction outlines the core focus of the book, the Kolonialdeutsche (Colonial Germans): officials and settlers who had invested substantial time and money in German imperialism. The book will examine the difficulties this diverse group of men and women encountered adjusting to their new circumstances, in Weimar Germany or in the new mandates, as they situated their notions of group identity between colonizers and colonial subjects in a world of empires that were not their own. The introduction outlines the temporal scope of the book, starting with the Treaty of Versailles and ending the in-depth analysis in 1933. The epilogue looks into the Nazi era and beyond. The author highlights the importance of Colonial German involvement in such diplomatic flashpoints as the Naturalization Controversy in South African-administered Southwest Africa, and German participation in the Permanent Mandates Commission (PMC) from 1927 to 1933, and the participation of one of Germany’s former colonial governors in the League of Nations’ commission sent to assess the Manchurian Crisis between China and Japan. The introduction also illustrates the contributions this book makes: revising standard historical portrayals of the League of Nations’ form of international governance, German participation in the League, the role of interest groups in international diplomacy, and liberal imperialism. In analyzing Colonial German investment and participation in interwar internationalism, the book also challenges the idea of a direct continuity between Germany’s colonial period and the Nazi era.

Nachhaltiges Investment

This book innovatively evaluates ‘sustainable investment funds’ against the background of the existing investment law, and it legally contextualises the current market situation. The central challenge as regards sustainable funds is the vagueness of non-economic investment criteria. After discussing the question of whether a universal statutory definition of non-economic criteria can be found, the analysis is dedicated to the interpretation of the non-economic criteria contained in privately drafted investment terms and conditions. The minimum requirements which the German Investment Act (KAGB) places on the use of such investment criteria are then evaluated. In addition, the study considers the regulatory requirements for sustainable investment funds, for instance the role of an ethics committee. Finally, it examines a capital management company’s civil liability for investing while in breach of contract.

Wohin Rubel und Euro fließen

Es gibt sie – langfristige russische Direktinvestitionen in Deutschland, wie die von Ilim Timber. Ursprünglich wollte das St. Petersburger Forstprodukteunternehmen nur deutsche Maschinen für eine neue Produktionsstätte in Russland kaufen und entschied sich dann dazu, zwei komplette Sägewerke in Wismar und Landsberg zu übernehmen (Tepavcevic, 2013) – oder die des Investors und Vorsitzenden der Sankt Petersburger Kirov-Werke Georgi Semenenko in Rostock (Mangler, 2017). Sie dienen nicht – wie oftmals bei russischen Investitionen in Deutschland unterstellt – der Kapital- oder Systemflucht, sondern werden aus strategischen Überlegungen heraus präzise geplant und erweisen sich als ökonomisch nachhaltig. Und umgekehrt gibt es auch die deutschen Erfolgsgeschichten in Russland, wie die von Pobeda Knauf, von Siemens Gas Turbine Technologies – einem Gemeinschaftsunternehmen der Siemens AG und der russischen Power Machines zur Produktion von Gasturbinen –, der Robert Bosch GmbH, von Mustang Neva im Bereich der Textilherstellung oder der Beteiligung von Henkel an der ERA AG in Tosno, die Wasch-, Reinigungs- und Scheuermittel sowie Kosmetika herstellt. Aber das wirtschaftspolitische Umfeld wird rauer. Ein Indikator dafür sind neben den kurzfristig reagierenden Import- und Exportzahlen vor allem die auf Langfristigkeit und Verlässlichkeit fußenden Investitionen russischer Unternehmen in Deutschland sowie deutscher Unternehmen in Russland. Der „Russian Investment Monitor“ der Hochschule Stralsund sowie der „German Investment Monitor“ der Polytechnischen Hochschule „Peter der Große“ in Sankt Petersburg ermöglichen eine fundierte Analyse und dienen als zuverlässiges Barometer der deutsch-russischen Wirtschaftsbeziehungen. When analyzing the long-term trade relations between two countries, import and export data are of limited help. Here the direct investment behavior is a much better indicator. However, direct investment figures entirely based on the stocks of investment are open to interpretation and might be even misleading. This is where the “Russian Investment Monitor” in Germany and the “German Investment Monitor” in Russia is of help. Analyzing investment behavior on the company level reveals the trust investors assign to their home country and the host country. Russian investments in Germany seem to be declining with China taking over the lead. Moreover, the Russian investments in Germany seem to a large part be motivated by capital flight rather than by traditional investment motives. However, exceptions to the rule exist. On the other hand, German investments in the Russian Federation seem to be more strategic and economically sustainable although the challenging political environment has reduced the German investment activity in Russia and opened the door to increasing Chinese direct investments. In summary, the German-Russian investment relations seem to be at the crossroads. Keywords: quot doing business ranking quot, investitionsverhalten, investitionstätigkeit, effizienzerhöhung, direktinvestitionen

Germany may raise spending to reduce imbalances

Subject Germany’s chronic trade surplus. Significance Germany’s trade surplus rose to 14.7% of GDP in May, Eurostat estimates released on July 14 show -- by far the highest in the EU. Reducing the negative effects of this and related imbalances poses a challenge for the governance of both the euro-area and the global political economy. Impacts Increased German investment would demonstrate goodwill and help revive the French-German axis. Refusal to address the issue could damage Germany’s credibility in the EU and worldwide. Despite some spending increases, a balanced budget may remain a priority -- especially for a CDU-led government. Germany runs a surplus on both its US goods and services trade; the only major economy to do so -- leaving it vulnerable to protectionism.

French-German axis hinges on reform delivery

Significance The joint cabinet meeting -- an annual event -- is only one of many signs of the close, long-term alliance between France and Germany. Still, yesterday’s gathering produced more than mere mood music. German Chancellor Angela Merkel even indicated that she would consider a euro-area budget and a greater role for the euro-area rescue fund -- something that would have been unthinkable even a few years ago. Impacts Brexit and Trump’s and Macron’s victories have given new impetus to the Franco-German axis. This will continue even if Merkel fails to be re-elected. More German investment would make it easier for Macron to sell tough reforms at home and demonstrate goodwill globally. France and Germany will develop Europe’s next-generation fighter plane and cooperate more to fight Islamist terrorists in the Sahel region. They also plan to launch a 1-billion-euro (1.14-billion-dollar) investment fund for technology start-ups, and harmonise corporate taxes.