ECJ rules that intra-EU ISDS mechanisms are illegal

The European Court of Justice has today ruled that the investor-state dispute mechanism contained in the bilateral investment agreement between Slovakia and the Netherlands “has an adverse effect on the autonomy of EU law, and is therefore incompatible with EU law.”

Greens/EFA trade spokesperson Heidi Hautala comments:

“The court has made clear that investor-state dispute settlement mechanisms have no place in internal EU investment agreements. A system where investors can sue member states and claim damages outside the legal system is illegitimate. The Court does not want it and neither do the citizens.

“The lesson here is clear. When it comes to trade and investor agreements, the EU should rely on EU law and its court system, not set up private courts for investors and multinational companies. With the ECJ also due to rule on the controversial EU-Canada deal, it seems that time may soon be up for ISDS.”


For more info, see the ECJ press release.