European Commission challenges Hungary regarding its approach to intra-EU arbitrations under the Energy Charter Treaty

According to a press release, the European Commission (EC) decided to open an infringement procedure against Hungary, “for undermining the Union’s position on the international stage with regard to the prohibition of intra-EU investor-State arbitrations related to the Energy Charter Treaty (ECT), and for contradicting the case law of the Court of Justice of the European Union.” The cause of the procedure lies in Hungary’s declaration regarding the effects of the Komstroy judgment of the Court of Justice of the EU (discussed here) that is, according to the EC, at odds with both the EU position and the judgment. The EC considers Hungary’s approach to be in violation of multiple provisions of the EU foundational treaties. Hungary has two months to respond and address the shortcomings.