The EU is negotiating investment protection agreements with third countries, including with Canada, the US, Japan, India and China. These investment agreements will most likely have an investor-state dispute settlement mechanism which allows companies to launch claims against the EU in the event of a violation of some key provisions of the agreement. This regulation is aimed at establishing a framework for the situation in which an investor sues the EU.
Who has to defend itself - the EU or the member state? Who has to pay?
Essentially, this dossier represents a conflict battle between member states and the Commission over competence in terms of investment policy. Several member states, particularly Germany, Finland and the Netherlands would like to keep as much power as possible in the hands of the member states. Our Group has clearly taken the "community line", in expressing support for a strong role for the Commission in the defending the Union in investment-arbitration cases.