Investment Protection and EU Law: The Intra- and Extra-EU Dimension of the Energy Charter Treaty

The interaction of investment treaty law with European Union (EU) law is a growing concern not only for policy makers but also for investors and arbitral tribunals, especially in the energy sector. This article sketches the existing and potential legal problems between the regimes with the aim of drawing conclusions on the impact of those tensions on the future of the Energy Charter Treaty (ECT). In the first part, the article discusses the problem of the compatibility of investment treaty law with EU law in general that may require EU member states to renegotiate their existing agreements. The second part is dedicated to the more controversial issues of the continuing applicability of intra-EU investment treaties, discussing their far-reaching overlap with the protection afforded by EU law and the resulting complications. Most of these problems also arise under the ECT, in addition to the specific complications that are analysed in the third part. The article also outlines the consequences of the entry into force of the Lisbon Treaty and finishes with a summary and outlook of the general importance of these European developments for the future of the ECT.