{"title":"The Incompatibility of Intra-EU Investment Treaty Arbitration With European Union Law – Assessing the Scope of the ECJ’S Achmea Judgment","authors":"Julian Scheu, Petyo Nikolov","doi":"10.2139/ssrn.3545811","DOIUrl":"https://doi.org/10.2139/ssrn.3545811","url":null,"abstract":"In March 2018, the European Court of Justice rendered its Achmea judgment, by which the Court considered the investor-State dispute settlement (ISDS) clause contained in the Dutch-Slovakian investment treaty to be incompatible with EU law. Even though the judgement is considered to be a landmark decision, its potentially far-reaching consequences remain, due to a rather obscure legal reasoning, difficult to assess. The aim of the present contribution is to assess the scope of the Achmea judgment in order to shed light on its relevance for pending and future intra-EU investment arbitrations. In view of the ECJ’s Opinion 1/17 rendered in April 2019 and in consideration of recent arbitral practice it is concluded that the scope of the Achmea judgement concerns the incompatibility of intra-EU investment treaty arbitration with EU law. This means on the one hand that the reasoning in Achmea is transferable not only to ISDS clauses in other intra-EU BITs, but also to Art. 26 of the Energy Charter Treaty. On the other hand, the analysis shows that contract-based investment arbitrations are not concerned by the ECJ’s findings. Finally and in view of its clarified scope of application, the relevant factors for analyzing the consequences of the Achmea judgement are identified.","PeriodicalId":378416,"journal":{"name":"International Economic Law eJournal","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123612965","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"International Investment Law as Transnational Law","authors":"Nicolás M. Perrone","doi":"10.2139/ssrn.3523632","DOIUrl":"https://doi.org/10.2139/ssrn.3523632","url":null,"abstract":"This chapter examines the international investment regime through the lens of transnational law. It argues that this regime would not exist—or at least not in its current form—if it was not for the transnational ambition of some bankers, lawyers, and academics who dreamed of moving foreign investment relations beyond the traditional categories of public and private law and international and domestic law. The current normal in international investment law started with audacious treaty models, writings and awards. This chapter contrasts this approach with the important academic debates about this field, which have paradoxically focused on whether international investment law is public or private law or if international or domestic law should control foreign investment relations. To conclude, the chapter looks at the situation of local nonstate actors in foreign investor relations, examining whether they could also rely on audacious transnational legal thinking to protect their interests.","PeriodicalId":378416,"journal":{"name":"International Economic Law eJournal","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133439664","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Advantages of Liabilities for Long Term Investment","authors":"Stephanie Runkat, Stanesie Liyanto, Ruth Veronica Santos","doi":"10.2139/ssrn.3516598","DOIUrl":"https://doi.org/10.2139/ssrn.3516598","url":null,"abstract":"Long-term investments is non-current liabilities that challenge decision of the company to look into the far future. Existing future studies often build upon a rational idea of decision making that does not help to explain why decision makers anticipate the future. This article proposes to tell us about many types of long-term investment and other components that makes long-term investment is important for company's future. Special attention is given to understanding the advantages of having long-term investment.<br>","PeriodicalId":378416,"journal":{"name":"International Economic Law eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130840673","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Financial Institutions and Social Rights: From Foes to Friends?","authors":"Matthias Goldmann","doi":"10.2139/ssrn.3513642","DOIUrl":"https://doi.org/10.2139/ssrn.3513642","url":null,"abstract":"This paper sets out the social rights obligations of both public financial institutions like the World Bank and the IMF, and of private financial institutions like banks. Moving beyond doctrinal analysis, it traces how the World Bank and the IMF have in practice over time considerably improved their compliance with social rights in respect of structural adjustment policies, in particular since the Great Financial Crisis. But social rights still need to become an integral part of their decision-making. By contrast, the private sector has made little progress. Initiatives like the Equator Principles turned out to be underwhelming, and the project of a binding treaty might yield modest results only. Nevertheless, there are inherent limitations to the effectiveness of social rights in relation to financial institutions. Judicial review faces structural constraints and may only filter the most egregious cases. It is therefore necessary to include social risks in the calculation of regulatory capital for private financial institutions. These proposals might prepare financial institutions for the possible transition to a post-growth society.","PeriodicalId":378416,"journal":{"name":"International Economic Law eJournal","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125330528","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Legal Strength of Council Recommendations Issued in the Procedures of EU Macroeconomic Coordination","authors":"M. Pires","doi":"10.2139/ssrn.3504804","DOIUrl":"https://doi.org/10.2139/ssrn.3504804","url":null,"abstract":"Most of the activity of European Union (EU) institutions in the area of macroeconomic coordination is done through recommendations issued by the Council, that are formally non-binding acts, where the EU advises Member States on economic and budgetary policies. Recent reforms of the Economic and Monetary Union led to an increase of the EU’s capacities regarding macroeconomic coordination, conferring to the Council and the Commission enhanced powers for supervising, monitoring and assessing the fiscal and economic situation of Member States. The reform also added reinforced sanctionatory mechanisms, establishing penalties for Member States that fail to comply with the rules, targets and EU acts in the area of economic governance. There seems then to be a normative tension or mismatch between the form and substance of the soft law acts of macroeconomic coordination and the hard law procedures to enforce them. The purpose of this paper is to analyze and discuss this tension, and to measure and understand to what extent are Council recommendations in this policy area binding upon EU Member States. This paper uses the conceptual tools provides by theories of soft law and empirical assessments on the compliance level with recommendations to answer its question.","PeriodicalId":378416,"journal":{"name":"International Economic Law eJournal","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121243497","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"China’s New Foreign Investment Law – With A Special Note On Swiss-Chinese Investment","authors":"Marius Stucki","doi":"10.2139/ssrn.3503897","DOIUrl":"https://doi.org/10.2139/ssrn.3503897","url":null,"abstract":"The new Foreign Investment Law (“FIL”) will come into force in China on 1 January 2020. Simultaneously, the current „three foreign investment laws”, namely the EJV Law, CJV Law and WFOE Law, will be repealed. The new legal regime subscribes to the spirit of national treatment of foreign-invested entities (“FIE”), although adopting specific rules for FIE’s in itself prevents real national treatment of such entities. This thesis discusses achievements as well as open questions with regard to the FIL. Important topics include the FIL’s new foreign investment security review system, the new working mechanism for complaints of foreign investors as well as the nature of “policy commitments” issued by government authorities towards foreign investors. In addition, the paper discusses the FIL’s effect on corporate government structures of existing FIEs and on the legal situation of “variable interest entities” operating in China.","PeriodicalId":378416,"journal":{"name":"International Economic Law eJournal","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114588348","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Integrating in a Rough Neighbourhood? The Part of Sustainable Development in the EU Economic Integration Efforts in the Post-Soviet Space: The Case of Moldova","authors":"A. Aseeva, A. Shishkova","doi":"10.2139/ssrn.3501584","DOIUrl":"https://doi.org/10.2139/ssrn.3501584","url":null,"abstract":"Gunnar Wiegand and Evelina Schulz have labelled the European Union (EU)’s trade facilitation efforts in the post-Soviet space as an integration ‘in a rough neighbourhood’. With this in consideration, our article looks at the impact of the Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Moldova on the development of the latter in a broader context of the EU’s Eastern Partnership (EaP) and European Neighborhood Policy (ENP). There is a clear link between the EaP/ ENP framework, within which the policy of extending EU legislation to the post-Soviet states is actively promoted, and the Association Agreement with Moldova. Our analysis of the implementation of Moldova’s economic integration into the EU market highlights not only positive but also several negative trends of this process. Namely, in the shorter term, Moldova’s economic, political and social benefits from the DCFTA are far from sustainable, as they are primarily associated with drastic legislative changes, as well as an increase in the export of raw materials and low-tech goods. In the long term, however, the DCFTA provisions bear the potential for the sustainable development of Moldova; but the effectiveness of their implementation depends primarily on solving systemic problems in the country. Against this background, we then offer an analysis of recent transnational disputes over one of the most crucial elements of Moldova’s sustainable development—namely, electricity. In particular, the so far latest ruling in the Energoalians 20 year-long row is essential both for the resolution of future transnational energy disputes under the Energy Charter Treaty (ECT) and for a better understanding of the EU’s attitude towards Moldova and its further European integration.","PeriodicalId":378416,"journal":{"name":"International Economic Law eJournal","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117041153","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Inversiones y arbitraje de inversiones: dos dogmas de la modernidad sometidos a revisión (Foreign Investment and Investment Arbitration: Two DOGMAS of Modernity Under Review).","authors":"C. Esplugues","doi":"10.2139/ssrn.3509705","DOIUrl":"https://doi.org/10.2139/ssrn.3509705","url":null,"abstract":"<b>Spanish Abstract:</b> Las inversiones extranjeras constituyen un sector de enorme trascendencia económica, que se encuentra sometido hoy a múltiples tensiones, en el marco de un aparente cambio de ciclo, que le convierten en una materia especialmente controvertida y debatida, y le dotan de un protagonismo del que carecía hasta el momento. En paralelo, este mismo proceso de crítica y revisión en profundidad se está planteando respecto del arbitraje de inversiones, otro de los dogmas fundamentales sobre los que se ha asentado el exponencial incremento en el flujo de inversiones extranjeras de los 30 últimos años. En este último caso, sin embargo, las razones de su puesta en duda son propias, aunque comparten algunos de los fundamentos sobre los que se asienta el proceso de revisión de la actitud mantenida en relación con los flujos de inversiones extranjeras. Iberoamérica se ve directamente afectada por este proceso de evolución, presentando singularidades y desarrollos propios. El presente artículo, capítulo introductorio de la obra Tratado de inversiones y arbitraje de inversiones en Iberoamérica, aborda en profundidad la actual situación del régimen jurídico de ambas realidades en Latinoamérica, analizando sus perspectivas de futuro. <br><br><br><b>English Abstract:</b> Foreign investment is a sector with an enormous economic impact subject to growing criticisms and revision. This same situation can also be referred to investment arbitration, another institution subject to reform. This quest for reevaluation of both realities obtains a special approach in Latin America where it presents its own singularities and developments. This article, which constitutes the introductory chapter of the book \"Treaty on investments and arbitration of investments in Latin America\", addresses in depth the current situation of the legal regime of both realities in Latin America as well as analyses their future prospects from a comparative standpoint.","PeriodicalId":378416,"journal":{"name":"International Economic Law eJournal","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-11-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134579895","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Intellectual Property and Investment Law: An Introduction","authors":"C. Geiger","doi":"10.2139/ssrn.3486879","DOIUrl":"https://doi.org/10.2139/ssrn.3486879","url":null,"abstract":"This short contribution constitutes the introductory chapter of the Research Handbook on Intellectual Property and Investment Law edited by Christophe Geiger and forthcoming in the Research Handbook series of Edward Elgar Publishing. The volume explores the complex and controversial interaction between intellectual property and investment law in the light of recent developments at international, European and national level. Indeed, international investment agreements often include specific references to IP rights in the list of ‘investments’ protected, thus allowing private parties to challenge States’ measures through investor-state dispute settlement (ISDS) mechanisms. Furthermore, the Handbook critically examines the legitimacy of current practices with regard to the social function of IP rights and the regulatory autonomy of States to take measures of public interest, as well as the likely avenues for future developments in the field. All the high profile cases are discussed not only in their investor-state context but also in the framework of other fora where they have been adjudicated such as the World Trade Organization. The interaction with fundamental rights and ethics is also explored, as well as some specific implications for the EU, in particular in the context of proposed reforms for the controversial ISDS mechanisms in recently adopted bilateral agreements such as CETA.","PeriodicalId":378416,"journal":{"name":"International Economic Law eJournal","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127792612","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The EU’s Cumbersome Investment Law and Policy, and Its Effects on the Protection of Intellectual Property Rights","authors":"Szilárd Gáspár Szilágyi","doi":"10.2139/ssrn.3527597","DOIUrl":"https://doi.org/10.2139/ssrn.3527597","url":null,"abstract":"The extension of the EU’s exclusive competences over foreign direct investment, instead of being a smooth operation meant to streamline the investment policies of the Member States into one common EU investment policy, has turned into an arduous process of legal and political hurdles. The purpose of this Chapter is to explain the ways in which the EU’s cumbersome investment law and policy can affect the protection of the Intellectual Property (IP) rights of EU investors abroad, by focusing on the following core issues: (a) the fate of Member State bilateral investment treaties (BITs) with third countries following the Lisbon amendments; (b) the conclusion of new EU trade and investment agreements; (c) the compatibility of intra-EU BITs with EU Law; and (d) the compatibility between the Investment Court System and investment tribunals under Member State BITs with third countries and EU law.","PeriodicalId":378416,"journal":{"name":"International Economic Law eJournal","volume":"36 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126477706","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}