Decentral EU Investment Policy Analysis

This document is a research article that examines the recent developments in the EU's investment policy, particularly focusing on the shift from a central to a decentralized approach. The paper outlines how Member States have increasingly engaged in negotiating Bilateral Investment Treaties (BITs) despite the EU's exclusive competence over Foreign Direct Investment (FDI) established by the Treaty of Lisbon in 2009. It details the implications of Regulation 1219/2012, which allows Member States to continue concluding BITs, and discusses the challenges faced by the EU's central approach due to stalled ratification processes. The authors analyze the growing trend of Member States pursuing their own investment agreements with third countries, highlighting the European Commission's role in authorizing these negotiations and shaping the investment policy framework. The paper also presents a comparison of EU agreements with Member States' BITs, aiming to identify procedural and substantive investment protection standards, thus providing a comprehensive understanding of the evolving landscape of EU investment policy.