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Good morning from the GLE Editorial desk. This fortnight the action sat squarely in Europe’s employment and enforcement machinery. Germany’s coalition agreed a sweeping labour reform package, the Netherlands fell further behind on pay transparency after Brussels refused to extend the deadline, nine regulators moved together against unlicensed prediction markets during the World Cup, Brussels deferred a major AI Act compliance date for HR systems, and UK M&A hit a fresh record on the back of foreign takeovers. For counsel running employment, regulatory and deal work across Europe, the ground shifted in several places at once.
Joel Gordon, Editorial · Global Law Experts
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Quick digest
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UK M&A has reached over $231 billion in offers so far in 2026, with foreign takeovers now accounting for 86% of all UK deal value.
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The European Commission has refused the Netherlands’ request to delay the Pay Transparency Directive, leaving Dutch implementation targeting January 2027 and infringement proceedings a live risk.
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Nine European gambling regulators, including Italy, are coordinating enforcement against unlicensed prediction-market platforms during the FIFA World Cup, with Spain already blocking Polymarket and Kalshi.
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The EU’s AI Act obligations for high-risk employment systems have been deferred from August 2026 to December 2027, giving employers using AI in recruitment more runway than expected.
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Jurisdictions covered
Germany · Netherlands · Italy · United Kingdom · European Union · Poland · France · Spain · Estonia · Switzerland · Cyprus
Lawyers featured in this edition
Eckart Brödermann · Shaparak Saleh · Gerard Marata · Mark Gofaizen · Alexandros Manousakis · Liliana Bakayoko · Panayotis Yannakas
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What mattered this fortnight
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Germany’s Coalition Agrees a Sweeping Labour Reform Package
On 2 July, Germany’s governing coalition agreed a 34-measure reform package under a “Programme for Economic Recovery and Employment”, though this is a political agreement rather than draft legislation so far. Planned changes include extending fixed-term contracts without objective grounds from two to four years (with up to six renewals) for staff hired before 2031, and a new route from January 2027 letting employers end the contracts of high earners (above roughly EUR177,450 gross annually) for a severance payment of up to 12 or 18 months’ salary.
Why it matters for counsel: Employment counsel should start briefing employer clients now on the direction of travel, even though implementing legislation has not yet been drafted, since the fixed-term and high-earner severance changes would materially reshape workforce planning once enacted.
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Netherlands Falls Further Behind on Pay Transparency, Brussels Refuses to Wait
The Netherlands missed the 7 June 2026 deadline to transpose the EU Pay Transparency Directive, with implementing legislation now unlikely before 1 January 2027. The European Commission has confirmed it will not accept any postponement and has signalled that infringement proceedings may follow for non-compliant member states.
Why it matters for counsel: Employers in the Netherlands should not treat the delay as relief, since Dutch legislation is still expected to land, likely pushing first gender pay gap reporting under the new regime out to 2028, and other non-compliant states face the same Commission pressure.
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ITALY & EUROPE · GAMBLING & REGULATORY |
Nine European Regulators Move Together Against Prediction Markets
Nine national gambling regulators, including Italy, Belgium, France, Germany, the Netherlands, Poland, Portugal, Spain and Switzerland, have coordinated action against unlicensed prediction-market platforms, timed to the surge in betting activity around the 2026 FIFA World Cup. Spain has already ordered a temporary block on Polymarket and Kalshi for operating without a licence, with similar geoblocking under way in France and the Netherlands.
Why it matters for counsel: Businesses operating or advertising prediction-market products in these jurisdictions should expect service blocking, fines or advertising restrictions to follow quickly, and should confirm licensing status before the World Cup period intensifies enforcement further.
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EUROPEAN UNION · EMPLOYMENT & AI |
Brussels Pushes Back the AI Act’s HR Compliance Deadline by 16 Months
Following a political agreement, the EU has deferred the AI Act’s high-risk system obligations for employment-related AI, covering recruitment, candidate screening and performance evaluation, from the original 2 August 2026 date to 2 December 2027. Employers had been facing mandatory risk assessments, bias testing, human oversight and six-month log retention for these systems from this August.
Why it matters for counsel: Employers using AI in hiring or performance management gain real runway, but should treat the deferral as a chance to build compliant systems properly rather than a reason to deprioritise the work, given fines of up to EUR15 million or 3% of global turnover once the obligations land.
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UK M&A Hits Record Levels as Foreign Bids Drive $231 Billion in Offers
Total offers for UK companies have risen past $231 billion so far in 2026, with foreign takeovers now accounting for 86% of all UK M&A by value, up from 74% at the same point last year. Notable deals driving the wave include EQT’s proposed GBP9.4 billion acquisition of Intertek and offers touching Schroders, Unilever’s food unit and Tate & Lyle.
Why it matters for counsel: With foreign bidders now dominant, boards and their advisers should expect more approaches structured around cross-border considerations from the outset, and should have their positions on national security screening and shareholder engagement ready ahead of any live process.
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FRANCE – FOREIGN INVESTMENT
France’s FDI Screening Turns From Blocking Deals to Governance Remedies
France’s foreign-investment regime has become a central instrument of economic-sovereignty policy, with a record run of Treasury filings and a shift toward shareholding and governance remedies such as board seats rather than outright blocking. Buyers of French strategic assets should price in board-level and shareholding conditions from the outset, not just clearance risk.
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GERMANY – ARBITRATION
German Practitioners Lean Further Into Neutral-Law Arbitration Tools
German-seated cross-border arbitration continues to see growing use of the UNIDROIT Principles as a neutral substantive-law choice, sidestepping disputes over whose national law should apply in multi-jurisdiction contracts. Counsel drafting cross-border contracts involving German counterparties should consider the UNIDROIT Principles where neither party’s home law is genuinely neutral.
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POLAND – EMPLOYMENT
Poland’s B2B Reclassification Powers Went Live on 8 July
Poland’s National Labour Inspectorate (PIP) gained the power to reclassify a B2B contractor as an employee by administrative order from 8 July, though a 12-month transition window means no administrative penalties will be imposed while businesses adjust contracts. Businesses using B2B contractor arrangements in Poland should review those contracts for genuine independence before the transition window closes.
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EU-WIDE – PLATFORM WORK
EU Platform Work Directive Deadline Approaches for Member States
The EU’s Platform Work Directive sets a December deadline for member states to introduce a rebuttable presumption of employment for platform workers, running alongside the wider push against false self-employment seen in the Netherlands and Poland. Platform businesses operating across multiple EU states should map their current worker-classification exposure ahead of the December deadline.
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EU-WIDE – TRAVEL & BORDER CONTROL
ETIAS Travel Authorisation Confirmed for a Q4 2026 Launch
The European Commission has confirmed the new ETIAS pre-travel authorisation for visa-exempt visitors will launch in Q4 2026, likely October or November, with a transitional grace period extending enforcement flexibility to around April 2027 across Schengen states including the Nordic and Baltic countries. Businesses moving staff or clients across Nordic and Baltic borders should start building the new authorisation step into travel planning well ahead of the Q4 launch.
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ESTONIA – FINTECH & CRYPTO-ASSET REGULATION
Estonia Closes Out Its Old Crypto Licensing Regime as MiCA Takes Over
From 1 July 2026, Estonia’s Financial Intelligence Unit has cancelled all remaining legacy virtual-currency service provider licences, meaning crypto-asset services may now only be offered under a MiCA authorisation from Finantsinspektsioon or another EEA regulator. The licence count has fallen from 641 at its 2021 peak to just 36 by the start of 2026, reflecting years of sustained supervisory tightening. Crypto-asset firms still trading on an old Estonian licence should confirm their MiCA authorisation status without delay, as the transitional cover has now ended.
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SPAIN – GAMBLING ENFORCEMENT
Spain Moves First, Blocking Polymarket and Kalshi
Spain’s gambling regulator has already ordered a temporary block on Polymarket and Kalshi, citing the platforms’ lack of a mandatory administrative licence under Spanish gambling law, making Spain the first mover among the nine coordinating regulators. Platforms and their partners should treat Spain’s action as a preview of what is likely to follow elsewhere in the coordinated group.
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ITALY – TAX
Italy Moves Toward Final Pay Transparency Legislation
Italy is among the smaller number of EU states, alongside Slovakia, Lithuania and Malta, that already have final Pay Transparency Directive legislation in force, ahead of larger economies including the Netherlands. Employers in Italy should confirm their pay-reporting processes are already compliant, rather than assuming the wider EU delay applies to them.
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Member spotlight
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Eckart Brödermann
Brödermann Jahn · Germany · Arbitration & UNIDROIT Principles
Eckart Brödermann of Brödermann Jahn has spent two decades applying the UNIDROIT Principles as a neutral substantive law in cross-border arbitrations, including a case that produced a $15 billion award. Watch his GLE Q&A.
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Shaparak Saleh
Three Crowns · France · Construction & International Arbitration
Shaparak Saleh of Three Crowns has handled more than 25 set-aside proceedings before the French courts and recently defeated a EUR400 million claim for a Malaysian independent power producer under Algerian law, seated in Paris. Watch her GLE Q&A.
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Gerard Marata
La Guard · Spain · Tax
Gerard Marata of La Guard has won 91% of the more than 120 tax controversy cases his boutique has brought before Spanish tax authorities and courts over the last decade, including a landmark CJEU case that led to a EUR13 million refund. Watch his GLE Q&A.
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Mark Gofaizen
Gofaizen & Sherle Fintech Lawyers · Estonia · FinTech Licensing
“We don’t simply analyse jurisdictions from afar. We build presence where it matters. When we see consistent client demand in a specific region, we establish local offices, hire local experts, and work directly with regulators without intermediaries.”
On building on-the-ground presence for crypto and FinTech licensing rather than advising at a distance, on a GLE Q&A. Watch.
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Alexandros Manousakis
Privintelligent Solutions · Switzerland · Data Privacy
“Law is complex, but legal advice shouldn’t be. We provide legal advice in plain English and easy to understand terms, no legalese, no jargon unless it’s absolutely necessary.”
On stripping jargon out of privacy and GDPR advice, on a GLE Q&A. Watch.
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Liliana Bakayoko
Law Firm Liliana Bakayoko · France · International Business
“We don’t simply provide legal protection. We empower our clients to use the law as a strategic tool for improvement and as a competitive advantage.”
On reframing law as a strategic lever for clients rather than a constraint, on a GLE Q&A. Watch.
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Panayotis Yannakas
Law Office of Panayotis Yannakas · Cyprus · Litigation
Panayotis Yannakas advises clients in Cyprus to formalise even voluntary settlements as court orders from day one, resolving disputes before a breach rather than after. Watch his GLE Q&A.
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What we’re tracking next
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Germany’s coalition reform package moving from political agreement to actual draft legislation, watch for the bill text and whether the January 2027 effective dates hold. |
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The EU Platform Work Directive’s December deadline for member states to introduce the employment presumption for platform workers. |
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Whether other EU regulators follow Spain’s lead and formally block prediction-market platforms as World Cup betting activity peaks. |
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Open calls for commentary
Every edition of this briefing reaches senior lawyers across the global legal community, together with the in-house counsel and business decision-makers who turn to Global Law Experts for verified intelligence on the developments shaping their markets.
When you contribute, your reading of a development becomes the practitioner voice that audience reads, published under your name, your firm and your jurisdiction. It is a direct way to be seen by your peers and by prospective clients as a leading authority on the issues moving in your market.
If a legal or regulatory development in your jurisdiction is worth flagging for the next edition, reply to this email with your jurisdiction and your take. We attribute every contributor by name, firm and country.
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Contributors this fortnight
Eckart Brödermann, Brödermann Jahn, Germany
Shaparak Saleh, Three Crowns, France
Gerard Marata, La Guard, Spain
Mark Gofaizen, Gofaizen & Sherle, Estonia
Alexandros Manousakis, Privintelligent Solutions, Switzerland
Liliana Bakayoko, Law Firm Liliana Bakayoko, France
Panayotis Yannakas, Law Office of Panayotis Yannakas, Cyprus
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