EU Members agree to treaty that prevents intra-EU ISDS cases

November 28, 2019: The European Commission has announced the conclusion of a treaty between EU members that will terminate intra-EU bilateral investment treaties and prevent investor-state dispute settlement (ISDS) cases being brought between EU member states.

The treaty comes after a decision by the European Court of Justice in 2018 which found that the inclusion of ISDS clauses in bilateral investment agreements between EU member states was contrary to EU law.

According to the European Commission statement, most EU members have signed the text and will now start domestic ratification processes. However, discussions are ongoing with a minority of governments who have not yet agreed to sign the termination treaty.

Discussions will also continue about the status of ISDS clauses in the Energy Charter Treaty, which most EU members are signatories to, but which also includes non-EU members. The Energy Charter has led to more ISDS claims than any other investment agreement globally.