End of Energy Charter Treaty arbitration cases in the EU

The National Assembly unanimously ratified an agreement that ends the possibility for international arbitration proceedings between investors and member states within the European Union under the Energy Charter Treaty.

This clause cannot and has never been able to serve as a legal basis for arbitration proceedings between an investor from a member state and another member state or the EU.

What are the main changes?

  • End of future claims: Article 26 of the Treaty can no longer be officially used as a basis for new arbitration disputes within the EU.
  • Termination of pending proceedings: All ongoing arbitration cases must be stopped, and new ones will not be registered.
  • Protection of already concluded cases: Decisions that have already been executed or are not subject to annulment remain in force and are not contested.

Why is this step necessary?

Deputy Minister of Finance Lyudmila Petkova clarified that the decision was prompted by the practice of the Court of Justice of the European Union. According to the court, the arbitration clause is incompatible with EU law. This agreement confirms a common understanding among member states to remove this mechanism, which provides legal clarity for businesses and institutions.