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Battle For Corporate Investment Rights

New investment powers, granted to the EU Commission under the Lisbon Treaty, will still allow multinational companies to claim compensation when national laws designed to protect the environment or public health damage their profits, according to proposals put forward by the EU Commission this month. The draft legislation on the protection of international investment – an area previously governed by member states – was an opportunity to change the current system under which national agreements frequently give companies investing overseas excessive protection from legislation in the host country. But following an intense lobby campaign from industry and EU member states led by Germany and the UK, the Commission has opted to protect the status quo. The Commission’s proposals will now be considered by the EU Parliament and the Council.

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