Towards a common EU investment policy

Today after more than two years of negotiations, the European Parliament adopted the draft Regulation on the financial responsibility in disputes between the European Union and a third country investor. It is a condition for implementing the common EU investment policy.

With the Lisbon Treaty Foreign Direct Investments have become an area of exclusive EU competence. Future EU agreements on investment protection with third countries will contain provisions regulating the settlement of investor to state disputes. This applies both to European investors investing in third countries as well as to investors from third countries investing in the EU. This new regulation tackles managing financial responsibility between the EU and its Member States.

During the negotiations the EP defended the position of the European Commission, which under the Treaty should be given a decisive role in determining EU's position in disputes with investors from third countries. Some Member States opposed extending the EC competences as they have been strongly attached to their role in the context of their bilateral investment protection agreements. "It was undoubtedly one of the most politically sensitive and technically complex reports, which the Committee on International Trade had to deal with in this term. It was not easy to find a compromise, therefore I am even more satisfied that I managed to facilitate the agreement between three institutions which were initially far apart", said MEP Paweł Zalewski, who on behalf of the EPP Group coordinated works on this report in the European Parliament.

The adopted document is a natural continuation of the Regulation on bilateral investment protection agreements concluded by Member States with third countries prior to the entry into force of the Treaty, which was adopted last year thanks to the efforts of Paweł Zalewski. "Ensuring a proper mechanism to solve disputes with investors is essential, particularly in the context of currently negotiated Free Trade Agreements such as TTIP. It is good that we managed to complete the work on the regulation in this parliamentary term. As a result, the EU will be able to effectively pursue its investments" concluded the Vice -Chair of the INTA committee.