Abstract
The purpose of this article is to analyze the main features and development of the newly created European Union (EU) investment policy, giving particular attention to its key concerns. First, the article introduces the shift of competences from the Member States to the EU, following the entry into force of the Lisbon Treaty.
This new playing field, based upon the inclusion of foreign direct investment within the framework of common commercial policy, is compared to the previous situation and legal framework. Consequently, the article identifies and analyzes three essential concerns associated with the EU investment policy.
First, it follows the uncertain legal statute and nature of Member States' bilateral investment treaties after the transfer of power to the EU. The high level of uncertainty required drafting and swift adoption of the particular EU regulation, which laid down the foundation for the conformity of these bilateral agreements with the EU law.
Second, the anticipated setting of European investment policy is discussed, based on the initial Commission Communication, as well as on its current practice, including the basic standards of treatment and selection of negotiating partners. So far, the EU has commenced negotiations with a number of third countries, while negotiations are already concluded with Canada, Singapore and Vietnam.
The final part concerns the draft of mechanism for the division of respondents and financial responsibility between Member States and the EU for future investor-state dispute settlements, using European regulation.