Commission takes Finland to EU court over investment deals
7 March 2007
The Finnish government said in a statement Wednesday that the European commission had brought legal action against Finland.
The commission’s writ concerns eight bilateral investment protection agreements signed by Finland and Belarus, China, Egypt, Malaysia, Russia, Sri Lanka, Ukraine and Uzbekistan before Finland joined the EU in 1995.
According to the commission, the agreements contain clauses that allow the free transfer of assets that are related to the investments between the contracting parties. In the EU, only the council of ministers has the right to make agreements on capital transfers between the EU and countries outside it.
Finland’s bilateral agreements would be irksome if the EU decided to impose sanctions, like those banning currency transfers, on any of the countries in question.
Finland is required to give its response to the European Court of Justice by the middle of April.