The Spanish Government approves the reform of the legal regime that establishes a screening regime for certain foreign direct investments

The Spanish government last week approved a new reform of the legal regime that establishes a screening regime for certain foreign direct investments ("FDI") in Spain, (the "Reform"), through the enactment of Royal Decree-Law 34/2020, of 17 November, on urgent measures to support business solvency and the energy sector as well as on tax matters. The Fourth Final Provision of Royal Decree-Law 8/2020 of 17 March regarding extraordinary urgent measures to deal with the economic and social impact caused by the COVID-19 crisis amended the Spanish Act 19/2003 of 4 July on the legal regime of capital movements and economic transactions abroad (the "Act 19/2003"). This was achieved by introducing a new Article 7 bis in order to suspend the liberalisation regime for certain FDIs carried out by