Financial Responsibility in the European International Investment Policy

Posted: 13 Jun 2013

See all articles by Jan Kleinheisterkamp

Jan Kleinheisterkamp

London School of Economics - Law School; Cornell University - Law School

Date Written: May 29, 2013


Financial responsibility of the EU resulting from investor-state arbitration is a politically sensitive topic that is currently shaping the emerging European international investment policy. What degree of protection can be granted to foreign investors in negotiations of future EU investment treaties without compromising EU policy space, and how much review of its regulatory powers not by the CJEU but by arbitral tribunals is the EU willing to accept? Taking the Commission’s recent draft Regulation on managing financial responsibility as the starting point, this paper analyses the implications that future EU investment agreements would have for the existing safeguards for balancing private and public interests in EU law. It discusses the latest reactions of the European Parliament to these issues (triggered by a previous version of this paper) and suggests a more scientific and sustainable approach towards ensuring that future EU agreements provide a maximum of legal certainty for both investors and host states.

JEL Classification: F13, F21, K33, K39, O16

Suggested Citation

Kleinheisterkamp, Jan, Financial Responsibility in the European International Investment Policy (May 29, 2013). LSE Legal Studies Working Paper No. 15/2013, Available at SSRN: or

Jan Kleinheisterkamp (Contact Author)

London School of Economics - Law School ( email )

Houghton Street
London WC2A 2AE, WC2A 2AE
United Kingdom
+44 20 7955 7256 (Phone)


Cornell University - Law School ( email )

Myron Taylor Hall
Cornell University
Ithaca, NY 14853-4901
United States

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