The Diplomat
On October 10, the Agreement for the termination of bilateral investment treaties between the Member States of the European Union will enter into force for Spain, which will imply the termination of ten bilateral treaties signed by our country between 1990 and 1998 with Eastern and Central European States.
The Agreement, which was signed in Brussels on May 5, 2020 and was subscribed on the same day, ad referendum, by Spain. The text entered into force generally on August 29, 2020 and for Spain will enter into force on October 10, 2021, in accordance with the provisions of Article 16 of the text, as reported last Tuesday in the Official State Gazette (BOE). This concludes the provisional application by Spain of this Agreement, which began on August 4, 2020.
The Agreement was promoted by the European Commission (EC), considering illegal the arbitration mechanisms between States and investors provided for in bilateral treaties between countries of the European Union or in the Energy Charter, such as, for example, the awards for renewables in favor of European investors in Spain. Most of the treaties concerned were signed between Central and Eastern European countries before they joined the EU. In Brussels’ view, the arbitration mechanisms included in these agreements undermined its legal system of recourse through national or European courts.
In the case of Spain, the entry into force of the Agreement will imply the termination of the bilateral agreements for the reciprocal protection and promotion of investments signed with the Czech Republic, Slovakia, Hungary, Romania, Lithuania, Latvia, Bulgaria, Estonia, Croatia and Slovenia, all signed between 1990 and 1998.
