Slovakia faces EU infringement proceedings over bilateral treaties

As part of its monthly package of infringement decisions, the European Commission launched infringement proceedings against Slovakia and four other countries on Thursday for keeping intra-EU bilateral investment treaties (BITs) in place even after joining the EU. The agreements were typically aimed at strengthening investor protection. A number of them were inked in the 1990s, when Slovakia sought to attract foreign investments and provide assurances that companies wouldn't lose their investment. "Since enlargement, such 'extra' reassurances should not be necessary, as all member states are subject to the same EU rules in the single market, including those on cross-border investments", noted the European Commission. The EC also noted that the agreements that remain in effect confer preferential positions on investors from certain countries, which translates into discrimination on the grounds of nationality. Due to incompatibility with EU law, the European Commission demanded that Slovakia - along with Austria, the Netherlands, Romania and Sweden - terminate the arrangements. The Commission has taken legal action against the countries for paying no heed to earlier calls to put an end to the agreements. In its latest monthly package of infringement decisions, the EU's executive arm has taken a total of 128 decisions against countries vis-a-vis their failures to meet their obligations under EU law.