The infringement proceedings over intra-EU investment treaties – an analysis of the case against Sweden

Abstract:

Numerous bilateral investment treaties (BITs) were signed between the incumbent Member States and the Central and Eastern European Member States prior to the latter becoming full Union members. While motivated at the time, the compatibility of these BITs with the internal market is in question.

The European Commission has therefore initiated infringement proceedings against five Member States, including the BIT between Sweden and Romania. The authors of this European Policy Analysis argue that the provisions are likely to constitute a violation of the principle of non-discrimination. Even though the termination of intra-EU BITs appears to be the only pragmatic solution, however, it is imperative that the sunset clauses are addressed explicitly.