The European Commission decided on Wednesday 9 February to refer the United Kingdom to the Court of Justice of the European Union over a judgment of its Supreme Court of 19 February 2020 allowing the enforcement of an arbitration award ordering Romania to pay compensation to investors, despite a Commission decision finding that the compensation violated EU State aid rules.
In December 2013, an arbitration tribunal, constituted under the International Centre for Settlement of Investment Disputes (ICSID), issued an award finding that Romania had breached a bilateral investment treaty it had concluded in 2003 with Sweden.
In 2014, the beneficiaries of the award applied for recognition in the UK. According to the UK Supreme Court, the UK’s obligations under EU law at the time did not preclude its alleged international obligation to recognise and enforce the ICSID award.
The Commission considers that the UK has breached the principle of sincere cooperation by adjudicating a legal question that was already put before the Union courts, namely the interpretation and application of Article 351 TFEU and the validity of the Commission's 2015 decision in this respect. (Original version in French by Lionel Changeur)