In a notable U-turn, the European Commission has proposed a collective and coordinated exit of all 27 member states from the controversial Energy Charter Treaty (ECT), an obscure international agreement that protects energy investors from unexpected circumstances that might hurt their profit expectations.
With 53 signatories, it is considered the most litigated investment deal in the world.
The policy change comes after the European Commission’s proposed reform to modernise the treaty collapsed in late November due to the opposition of Germany, France, Spain and the Netherlands, who had previously announced plans to unilaterally withdraw.
The blocking minority left the reform process in a no man’s land, with more countries, such as Poland, Luxembourg, Belgium and Austria, voicing similar plans to pull out.
The European Parliament passed last year a resolution urging the European Commission to lay the groundwork for a way out.
Source: Euro News
