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EU asks five member states to end intra-EU bilateral investment treaties

Xinhua, June 18, 2015 Adjust font size:

The European Commission said on Thursday it has initiated infringement proceedings against five Member States asking them to terminate intra-EU bilateral investment treaties (intra-EU BITs).

The Commission has decided to request Austria, the Netherlands, Romania, Slovakia and Sweden to bring the intra-EU BITs between them to an end.

Intra-EU BITs are agreements that exist between EU Member States. The Commission said many of these intra-EU BITs were agreed in the 1990s, before the EU enlargements of 2004, 2007 and 2013 and aimed at strengthening investor protection, for example by means of compensation for expropriation and arbitration procedures for the settlement of investment disputes.

As all Member States are subject to the same EU rules in the single market now, such extra investor protection should not be necessary.

"Intra-EU bilateral investment treaties are outdated and as Italy and Ireland have shown by already terminating their intra-EU BITs, no longer necessary in a single market of 28 Member States," said Jonathan Hill, EU Commissioner for Financial Services, Financial Stability and Capital Markets Union.

Member States are now expected to reply to the Commission in 2 months. The Commission will also call a meeting with all Member States early in October to provide assistance to facilitate the termination of intra-EU BITs. Endit