Brussels, 07/07/2010 (Agence Europe) - On Wednesday 7 July, the European Commission presented a package of measures to boost the EU's foreign direct investment (FDI) and underpin investors' rights. This first step towards a comprehensive European international investment policy comes, firstly, in the form of a policy paper which examines how best practice and the new EU competence on foreign direct investment can be used to boost competitiveness and contribute to smart, sustainable and inclusive growth, all objectives of the EU 2020 strategy. At the same time, a draft regulation sets up transitional arrangements offering guarantees on existing or pending bilateral investment treaties concluded between EU and non-EU countries. In this area, the Commission ensures that there is legal certainty for European investors and foreign investors, without preventing the EU from negotiating new investment treaties at European level. Under the Lisbon Treaty, investment policy will be developed and managed at the European level, the EU's negotiating hand in being able to deliver better investment protection for all European businesses. “European investors need open, sound and predictable business environments to thrive and these proposals aim to strengthen the EU's ability to ensure level playing fields for them. In the long run, a comprehensive investment policy will keep Europe as the world's number one player in the field of foreign direct investment, ensure the best deal for all European businesses, invigorate growth and create jobs at this crucial time,” said EU Trade Commissioner Karel De Gucht in a press release.
With its impact on optimisation of resource allocation, job creation and technology transfer, FDI is a main contributor to economic growth. By 2008, outward stocks of FDI amounted to €3.3 trillion while EU inward stocks accounted for €2.4 trillion. This investment is secured via Bilateral Investment Treaties (BITs) which establish the terms and conditions for investment by nationals and companies of one country in another and set up a legally binding level of protection in order to encourage investment flows between two countries. Among other things, BITs grant investors fair, equitable and non-discriminatory treatment, protection against illegal expropriation and the right to direct recourse to international arbitration bodies. With 1,200 treaties already concluded, EU member states are the world's main users of BITs. (E.H./transl.rt)