LEGEA PRIVIND APROBAREA ÎNCETĂRII VALABILITĂŢII TRATATELOR BILATERALE DE INVESTIŢII INTRA-UE: PREMISE, STATU-QUO ŞI PERSPECTIVE
THE LAW APPROVING THE TERMINATION OF THE INTRA-EU BILATERAL INVESTMENT TREATIES: PREMISES, STATUS QUO AND PERSPECTIVES

Summary/Abstract: The Law no. 18/2017 approving the termination of 22 bilateral investment treaties between Romania and the European Union Member States came into force on 24 March 2017. The legislative initiative follows after the European Commission has commenced infringement proceedings against Romania and other four Member States demanding these states to terminate the intra-EU BITs between them on the basis that such BITs are outdated, no longer necessary in a single market and incompatible with the EU law. The termination of each bilateral investment treaty will take effect when Romania will either notify unilaterally the denunciation, or will conclude agreements with its counterpart Member States to terminate the bilateral investment treaties. Although bilateral investment treaties contain survival ("sunset") clauses extending the investment protection for 10, 15 or 20 years after the termination, Romania is set to seek avenues for terminating the BITs with immediate effect. Therefore, it remains to be seen whether foreign companies that invested in Romania prior to the prospective termination will be able to rely on the protection granted under the bilateral investment treaties for another defined period of time. From this latter perspective, although termination of BITs by signatories is not an unprecedented measure, Romania may become a pathbreaker, sending a negative message to foreign investors.

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