The European Commission has opened an infringement procedure against Hungary by sending a letter of formal notice, on Thursday 25 July, for undermining the EU’s position on the prohibition of intra-EU investor-State arbitrations related to the Energy Charter Treaty (ECT) (see EUROPE 13441/36) and for contradicting the case law of the Court of Justice of the EU.
On 26 June 2024, the EU and 26 Member States declared the ECT arbitration clause inapplicable to intra-EU disputes following the Komstroy ruling. However, Hungary adopted a unilateral declaration stating that the judgment only applied to future cases following the amendment of the ECT.
The Commission maintains that Hungary’s position contradicts the decision of the Court of Justice and the Union’s position on arbitration tribunals and courts of third countries, and that it is in breach of the duty of sincere cooperation.
If Hungary does not provide a satisfactory response within 2 months, the Commission may decide to issue a reasoned opinion.
To see the infringement decision: https://aeur.eu/f/d4y (Original version in French Pauline Denys)