Brussels, 16/05/2011 (Agence Europe) - On Friday 13 May, Commissioner Karel De Gucht met the European trade ministers to take stock of developments in the dossier on the new Community framework for investments, which will be based on a regulation currently being examined in co-decision between the Council and the European Parliament.
The EU's current legal framework governing foreign direct investment (FDI) consists of more than 1,200 bilateral investment treaties (BITs) between the EU27 and third countries. Since the Lisbon Treaty entered into force on 1 December 2009, investment has become an exclusive competence of the EU. The Commission now has an exclusive right to carry out negotiations on new investment agreements with third countries. This change will entail the gradual replacement of the 1200 BITs. The proposed regulation seeks to ensure a smooth transition from the current to the future system.
The Council on Friday confirmed its intention to find a negotiated agreement with the Parliament, which will allow the regulation on BITs to enter into force as soon as possible. On 11 May, the Parliament adopted its position at first reading - report by Carl Schlyter (Greens/EFA), see EUROPE 10377.
Speaking before the press, the president-in-exercise of the Council, Hungarian Minister Janos Martonyi, stressed the double objective of the Council in this dossier: to guarantee the greatest possible legal certainty with a high degree of protection for EU investors, and to guarantee the attractiveness of the EU as a preferred destination for foreign direct investment of third countries. (E.H./transl.fl)