Council stresses the need for a common framework on investment agreements at EU level
EuroAlert.net | Monday, September 13, 2010
Council stresses the need for a common framework on investment agreements at EU level
The Foreign Affairs Council meeting held in Brussels on 10 September exchanged some views relating some key issues on International Investment Policy. Ministers agreed on the need to put into place a common framework to develop the new EU competence in foreign direct investment granted by the Treaty of Lisbon.
Globalisation has seen a dramatic increase of capital movements in recent years. Only in 2007, foreign direct investment (FDI) flows reached a record high of almost 1.5 billion Euro. Until now, member states negotiated bilateral investment treaties with third countries, but article 207 of the Treaty of Lisbon, which entered into force in December 2009, made foreign direct investment a policy area of exclusive EU competence as part of its common commercial policy.
As a first step in addressing the effects of this new EU competence, the Commission presented in July a policy package comprising the communication and a proposal for a regulation aimed at establishing transitional arrangements for the member states bilateral investment treaties. The communication addresses issues such as the definition of FDI, the criteria for selecting prospective negotiating partners, standards for future investment agreements at EU level and the settlement of disputes.
Council took note of the presentation by the Commission of a communication on the development of an EU policy on international investments and held an exchange of views on such issues. During the course of the Council’s discussion, delegations highlighted the need to put into place as soon as possible a comprehensive and efficient framework for investment agreements at EU level.
They underscored the need, in doing so, to ensure legal certainty for operators, as well as predictability and maximum protection for EU investors abroad, and to maintain the EU as an attractive destination for investment.
