European Union�s Approach to Reforming International Investment Law

The European Union (EU) continues to be a firm proponent of the international protection of foreign investments through a web of (mostly bilateral) investment agreements, initially developed and spread all over the world by its Member States. Nonetheless, shortly after acquiring its own competence in this area, the EU has joined efforts to reform the system in order to ensure greater balance between the investment protection and the states' right to regulate in pursuance of other legitimate policy objectives. The EU has developed its own reform approach covering both substantive and procedural features of the system, and adopted an increasingly diversified approach no longer involving investment protection in all cases. This contribution discusses the EU's approach to international investment law reform and highlights a number of standing concerns that do not seem to be effectively addressed in the EU's international investment agreements yet.