EU withdrawal from ECT

On May 30, 2024, the Council of the European Union adopted a set of decisions greenlighting the withdrawal of the EU and Euratom from the ECT. The step follows several months of intense negotiations among the EU member states and marks a significant shift for European and global investment policy, as the ECT is the investment treaty that has generated the highest number of investment arbitrations. An open question is whether the EU and its member states will conclude a so-called inter se agreement to address the ECT’s sunset clause, according to which investments made prior to the withdrawal continue to benefit from the treaty for a period of 20 years.