# C_2016055EN.01019601.xml

| 12.2.2016 | EN | Official Journal of the European Union | C 55/196 |
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12.2.2016

EN

Official Journal of the European Union

C 55/196

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P7_TA(2013)0219

Establishing a framework for managing financial responsibility linked to investor-state dispute settlement tribunals established by international agreements to which the EU is party ***I

Amendments adopted by the European Parliament on 23 May 2013 on the proposal for a regulation of the European Parliament and of the Council establishing a framework for managing financial responsibility linked to investor-state dispute settlement tribunals established by international agreements to which the European Union is party (COM(2012)0335 — C7-0155/2012 — 2012/0163(COD)) (1)

1

(Ordinary legislative procedure: first reading)

(2016/C 055/41)

Amendment 1

Amendment 1

Proposal for a regulation

Proposal for a regulation

Title

Title

| Text proposed by the Commission | Amendment |
| --- | --- |
| Regulation of the European Parliament and of the Council establishing a framework for managing financial responsibility linked to
  investor-state
  dispute settlement tribunals established by international agreements to which the European Union is party | Regulation of the European Parliament and of the Council establishing a framework for managing financial responsibility linked to
  investor-to-state
  dispute settlement tribunals established by international agreements to which the European Union is party |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Regulation of the European Parliament and of the Council establishing a framework for managing financial responsibility linked to
  investor-state
  dispute settlement tribunals established by international agreements to which the European Union is party

investor-state

Regulation of the European Parliament and of the Council establishing a framework for managing financial responsibility linked to
  investor-to-state
  dispute settlement tribunals established by international agreements to which the European Union is party

investor-to-state

Amendment 2

Amendment 2

Proposal for a regulation

Proposal for a regulation

Recital 1

Recital 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| (1) | With the entry into force of the Lisbon Treaty, the Union has acquired exclusive competence for the conclusion of international agreements on investment protection. The Union is already party to the Energy Charter Treaty which provides for investment protection. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(1)

With the entry into force of the Lisbon Treaty, the Union has acquired exclusive competence for the conclusion of international agreements on investment protection. The Union is already party to the Energy Charter Treaty which provides for investment protection.

| (1) | With the entry into force of the Lisbon Treaty, the Union has acquired exclusive competence for the conclusion of international agreements on investment protection. The Union
  , like the Member States,
  is already party to the Energy Charter Treaty which provides for investment protection. |
| --- | --- |

(1)

With the entry into force of the Lisbon Treaty, the Union has acquired exclusive competence for the conclusion of international agreements on investment protection. The Union
  , like the Member States,
  is already party to the Energy Charter Treaty which provides for investment protection.

, like the Member States,

Amendment 3

Amendment 3

Proposal for a regulation

Proposal for a regulation

Recital 2

Recital 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| (2) | Agreements providing for
  investment protection
  typically
  include an investor-to-state dispute settlement mechanism, which allows an investor from a third country to bring a claim against a state in which it has made an investment. Investor-to-state dispute settlement can result in awards for monetary compensation. Furthermore, significant costs for administering the arbitration as well as costs relating to the defence of a case will inevitably be incurred in any such case. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(2)

Agreements providing for
  investment protection
  typically
  include an investor-to-state dispute settlement mechanism, which allows an investor from a third country to bring a claim against a state in which it has made an investment. Investor-to-state dispute settlement can result in awards for monetary compensation. Furthermore, significant costs for administering the arbitration as well as costs relating to the defence of a case will inevitably be incurred in any such case.

Agreements providing for

typically

| (2) | In the cases where it is justifiable, future
  investment protection
  agreements concluded by the Union can
  include an investor-to-state dispute settlement mechanism, which allows an investor from a third country to bring a claim against a state in which it has made an investment. Investor-to-state dispute settlement can result in awards for monetary compensation. Furthermore, significant costs for administering the arbitration as well as costs relating to the defence of a case will inevitably be incurred in any such case. |
| --- | --- |

(2)

In the cases where it is justifiable, future
  investment protection
  agreements concluded by the Union can
  include an investor-to-state dispute settlement mechanism, which allows an investor from a third country to bring a claim against a state in which it has made an investment. Investor-to-state dispute settlement can result in awards for monetary compensation. Furthermore, significant costs for administering the arbitration as well as costs relating to the defence of a case will inevitably be incurred in any such case.

In the cases where it is justifiable, future

agreements concluded by the Union can

Amendment 4

Amendment 4

Proposal for a regulation

Proposal for a regulation

Recital 3 a (new)

Recital 3 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (3a) | Financial responsibility cannot be properly managed if the standards of protection afforded in investment agreements were to exceed significantly the limits of liability recognised in the Union and the majority of the Member States. Accordingly, future Union agreements should afford foreign investors the same high level of protection as, but no higher level of protection than, Union law and the general principles common to the laws of the Member States grant to investors from within the Union. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(3a)

(3a)

Financial responsibility cannot be properly managed if the standards of protection afforded in investment agreements were to exceed significantly the limits of liability recognised in the Union and the majority of the Member States. Accordingly, future Union agreements should afford foreign investors the same high level of protection as, but no higher level of protection than, Union law and the general principles common to the laws of the Member States grant to investors from within the Union.

Financial responsibility cannot be properly managed if the standards of protection afforded in investment agreements were to exceed significantly the limits of liability recognised in the Union and the majority of the Member States. Accordingly, future Union agreements should afford foreign investors the same high level of protection as, but no higher level of protection than, Union law and the general principles common to the laws of the Member States grant to investors from within the Union.

Amendment 5

Amendment 5

Proposal for a regulation

Proposal for a regulation

Recital 3 b (new)

Recital 3 b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (3b) | Delineation of the outer limits of financial responsibilities under this Regulation is also linked to the safeguarding of the Union's legislative powers exercised within the competences defined by the Treaties, and controlled for their legality by the Court of Justice, which cannot be unduly restrained by potential liability defined outside the balanced system established by the Treaties. Accordingly, the Court of Justice has clearly confirmed that the Union's liability for legislative acts, especially in the interaction with international law, must be framed narrowly and cannot be engaged without the clear establishment of fault

   (2)

  . Future investment agreements to be concluded by the Union should respect those safeguards to the Union's legislative powers and should not establish stricter standards of liability allowing a circumvention of the standards defined by the Court of Justice. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(3b)

(3b)

Delineation of the outer limits of financial responsibilities under this Regulation is also linked to the safeguarding of the Union's legislative powers exercised within the competences defined by the Treaties, and controlled for their legality by the Court of Justice, which cannot be unduly restrained by potential liability defined outside the balanced system established by the Treaties. Accordingly, the Court of Justice has clearly confirmed that the Union's liability for legislative acts, especially in the interaction with international law, must be framed narrowly and cannot be engaged without the clear establishment of fault

   (2)

  . Future investment agreements to be concluded by the Union should respect those safeguards to the Union's legislative powers and should not establish stricter standards of liability allowing a circumvention of the standards defined by the Court of Justice.

Delineation of the outer limits of financial responsibilities under this Regulation is also linked to the safeguarding of the Union's legislative powers exercised within the competences defined by the Treaties, and controlled for their legality by the Court of Justice, which cannot be unduly restrained by potential liability defined outside the balanced system established by the Treaties. Accordingly, the Court of Justice has clearly confirmed that the Union's liability for legislative acts, especially in the interaction with international law, must be framed narrowly and cannot be engaged without the clear establishment of fault

2

. Future investment agreements to be concluded by the Union should respect those safeguards to the Union's legislative powers and should not establish stricter standards of liability allowing a circumvention of the standards defined by the Court of Justice.

Amendment 6

Amendment 6

Proposal for a regulation

Proposal for a regulation

Recital 4

Recital 4

| Text proposed by the Commission | Amendment |
| --- | --- |
| (4) | Where the Union has international responsibility for the treatment afforded, it will be expected, as a matter of international law, to pay any adverse award and bear the costs of any dispute. However, an adverse award may potentially flow either from treatment afforded by the Union itself or from treatment afforded by a Member State. It would as a consequence be inequitable if awards and the costs of arbitration were to be paid from the Union budget where the treatment was afforded by a Member State. It is therefore necessary that financial responsibility be allocated, as a matter of Union law, and without prejudice to the international responsibility of the Union, between the Union and the Member State responsible for the treatment afforded on the basis of criteria established by this Regulation. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(4)

Where the Union has international responsibility for the treatment afforded, it will be expected, as a matter of international law, to pay any adverse award and bear the costs of any dispute. However, an adverse award may potentially flow either from treatment afforded by the Union itself or from treatment afforded by a Member State. It would as a consequence be inequitable if awards and the costs of arbitration were to be paid from the Union budget where the treatment was afforded by a Member State. It is therefore necessary that financial responsibility be allocated, as a matter of Union law, and without prejudice to the international responsibility of the Union, between the Union and the Member State responsible for the treatment afforded on the basis of criteria established by this Regulation.

| (4) | Where the Union
  , as an entity having legal personality,
  has international responsibility for the treatment afforded, it will be expected, as a matter of international law, to pay any adverse award and bear the costs of any dispute. However, an adverse award may potentially flow either from treatment afforded by the Union itself or from treatment afforded by a Member State. It would as a consequence be inequitable if awards and the costs of arbitration were to be paid from the
  budget of the European Union (
  Union budget) where the treatment was afforded by a Member State. It is therefore necessary that financial responsibility be allocated, as a matter of Union law, and without prejudice to the international responsibility of the Union, between the Union
  itself
  and the Member State responsible for the treatment afforded on the basis of criteria established by this Regulation. |
| --- | --- |

(4)

Where the Union
  , as an entity having legal personality,
  has international responsibility for the treatment afforded, it will be expected, as a matter of international law, to pay any adverse award and bear the costs of any dispute. However, an adverse award may potentially flow either from treatment afforded by the Union itself or from treatment afforded by a Member State. It would as a consequence be inequitable if awards and the costs of arbitration were to be paid from the
  budget of the European Union (
  Union budget) where the treatment was afforded by a Member State. It is therefore necessary that financial responsibility be allocated, as a matter of Union law, and without prejudice to the international responsibility of the Union, between the Union
  itself
  and the Member State responsible for the treatment afforded on the basis of criteria established by this Regulation.

, as an entity having legal personality,

budget of the European Union (

itself

Amendment 7

Amendment 7

Proposal for a regulation

Proposal for a regulation

Recital 6

Recital 6

| Text proposed by the Commission | Amendment |
| --- | --- |
| (6) | Financial responsibility should be allocated to the entity responsible for the treatment found to be inconsistent with the relevant provisions of the agreement. This means that the Union should bear the financial responsibility where the treatment concerned is afforded by
  an institution, body or agency
  of the Union. The Member State concerned should bear the financial responsibility where the treatment concerned is afforded by
  a
  Member State. However, where the Member State acts in a manner required by
  the law of
  the Union, for example in transposing a directive adopted by the Union, the Union should bear financial responsibility in so far as the treatment concerned is required by Union law. The regulation also needs to foresee the possibility that an individual case could concern both treatment afforded by a Member State and treatment required by Union law. It will cover all actions taken by Member States and by the
  European
  Union. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(6)

Financial responsibility should be allocated to the entity responsible for the treatment found to be inconsistent with the relevant provisions of the agreement. This means that the Union should bear the financial responsibility where the treatment concerned is afforded by
  an institution, body or agency
  of the Union. The Member State concerned should bear the financial responsibility where the treatment concerned is afforded by
  a
  Member State. However, where the Member State acts in a manner required by
  the law of
  the Union, for example in transposing a directive adopted by the Union, the Union should bear financial responsibility in so far as the treatment concerned is required by Union law. The regulation also needs to foresee the possibility that an individual case could concern both treatment afforded by a Member State and treatment required by Union law. It will cover all actions taken by Member States and by the
  European
  Union.

an institution, body or agency

a

the law of

European

| (6) | Financial responsibility should be allocated to the entity responsible for the treatment found to be inconsistent with the relevant provisions of the agreement. This means that the Union
  itself
  should bear the financial responsibility where the treatment concerned is afforded by
  any institution, body, agency or other legal entity
  of the Union. The Member State concerned should bear the financial responsibility where the treatment concerned is afforded by
  that
  Member State. However, where the Member State acts in a manner required by the Union
  law
  , for example in transposing a directive adopted by the Union, the Union
  itself
  should bear financial responsibility in so far as the treatment concerned is required by Union law. The regulation also needs to foresee the possibility that an individual case could concern both treatment afforded by a Member State and treatment required by Union law. It will cover all actions taken by Member States and by the Union.
  In such a case, the Member States and the Union should bear financial responsibility for the specific treatment afforded by either of them. |
| --- | --- |

(6)

Financial responsibility should be allocated to the entity responsible for the treatment found to be inconsistent with the relevant provisions of the agreement. This means that the Union
  itself
  should bear the financial responsibility where the treatment concerned is afforded by
  any institution, body, agency or other legal entity
  of the Union. The Member State concerned should bear the financial responsibility where the treatment concerned is afforded by
  that
  Member State. However, where the Member State acts in a manner required by the Union
  law
  , for example in transposing a directive adopted by the Union, the Union
  itself
  should bear financial responsibility in so far as the treatment concerned is required by Union law. The regulation also needs to foresee the possibility that an individual case could concern both treatment afforded by a Member State and treatment required by Union law. It will cover all actions taken by Member States and by the Union.
  In such a case, the Member States and the Union should bear financial responsibility for the specific treatment afforded by either of them.

itself

any institution, body, agency or other legal entity

that

law

itself

In such a case, the Member States and the Union should bear financial responsibility for the specific treatment afforded by either of them.

Amendment 8

Amendment 8

Proposal for a regulation

Proposal for a regulation

Recital 6 a (new)

Recital 6 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (6a) | When the Member State acts in a manner inconsistent with that required by Union law, for example when it fails to transpose a directive adopted by the Union or exceeds the terms of a directive adopted by the Union when implementing it into national law, that Member State should consequently bear financial responsibility for the treatment concerned. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(6a)

(6a)

When the Member State acts in a manner inconsistent with that required by Union law, for example when it fails to transpose a directive adopted by the Union or exceeds the terms of a directive adopted by the Union when implementing it into national law, that Member State should consequently bear financial responsibility for the treatment concerned.

When the Member State acts in a manner inconsistent with that required by Union law, for example when it fails to transpose a directive adopted by the Union or exceeds the terms of a directive adopted by the Union when implementing it into national law, that Member State should consequently bear financial responsibility for the treatment concerned.

Amendment 9

Amendment 9

Proposal for a regulation

Proposal for a regulation

Recital 8

Recital 8

| Text proposed by the Commission | Amendment |
| --- | --- |
| (8) | On the other hand, where a Member State would bear the potential financial responsibility arising from a dispute, it is appropriate, as a matter of principle, to permit such Member State to act as respondent in order to defend the treatment which it has afforded to the investor. The arrangements set down in this Regulation provide for that. This has the significant advantage that the Union budget and Union resources would not be burdened, even temporarily, by either the costs of litigation or any eventual award made against the Member State concerned. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(8)

On the other hand, where a Member State would bear the potential financial responsibility arising from a dispute, it is appropriate, as a matter of principle, to permit such Member State to act as respondent in order to defend the treatment which it has afforded to the investor. The arrangements set down in this Regulation provide for that. This has the significant advantage that the Union budget and Union resources would not be burdened, even temporarily, by either the costs of litigation or any eventual award made against the Member State concerned.

| (8) | On the other hand, where a Member State would bear the potential financial responsibility arising from a dispute, it is
  equitable and
  appropriate, as a matter of principle, to permit such Member State to act as respondent in order to defend the treatment which it has afforded to the investor. The arrangements set down in this Regulation provide for that. This has the significant advantage that the Union budget and Union
  non-financial
  resources would not be burdened, even temporarily, by either the costs of litigation or any eventual award made against the Member State concerned. |
| --- | --- |

(8)

On the other hand, where a Member State would bear the potential financial responsibility arising from a dispute, it is
  equitable and
  appropriate, as a matter of principle, to permit such Member State to act as respondent in order to defend the treatment which it has afforded to the investor. The arrangements set down in this Regulation provide for that. This has the significant advantage that the Union budget and Union
  non-financial
  resources would not be burdened, even temporarily, by either the costs of litigation or any eventual award made against the Member State concerned.

equitable and

non-financial

Amendment 10

Amendment 10

Proposal for a regulation

Proposal for a regulation

Recital 10

Recital 10

| Text proposed by the Commission | Amendment |
| --- | --- |
| (10) | In certain circumstances, it is essential, in order to ensure that the interests of the Union can be appropriately safeguarded, that the Union itself act as a respondent in disputes involving treatment afforded by a Member State. This may be so in particular where the dispute also involves treatment afforded by the Union, where it appears that the treatment afforded by a Member State is required by Union law, where
  it is likely that
  similar claims
  may be brought
  against other Member States or where the case involves
  unsettled
  issues of law, the resolution of which may have an impact on possible future cases against other Member States or the Union. Where a dispute concerns partially treatment afforded by the Union, or required by Union law, the Union should act as a respondent, unless the claims concerning such treatment are of minor importance, having regard to the potential financial responsibility involved and the legal issues raised, in relation to the claims concerning treatment afforded by the Member State. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(10)

In certain circumstances, it is essential, in order to ensure that the interests of the Union can be appropriately safeguarded, that the Union itself act as a respondent in disputes involving treatment afforded by a Member State. This may be so in particular where the dispute also involves treatment afforded by the Union, where it appears that the treatment afforded by a Member State is required by Union law, where
  it is likely that
  similar claims
  may be brought
  against other Member States or where the case involves
  unsettled
  issues of law, the resolution of which may have an impact on possible future cases against other Member States or the Union. Where a dispute concerns partially treatment afforded by the Union, or required by Union law, the Union should act as a respondent, unless the claims concerning such treatment are of minor importance, having regard to the potential financial responsibility involved and the legal issues raised, in relation to the claims concerning treatment afforded by the Member State.

it is likely that

may be brought

unsettled

| (10) | In certain circumstances, it is essential, in order to ensure that the interests of the Union can be appropriately safeguarded, that the Union itself
  may
  act as a respondent in disputes involving treatment afforded by a Member State. This may be so in particular where the dispute also involves treatment afforded by the Union, where it appears that the treatment afforded by a Member State is required by Union law, where similar claims
  have been lodged
  against other Member States or where the case involves issues of law, the resolution of which may have an impact on
  current or
  possible future cases against other Member States or the Union. Where a dispute concerns partially treatment afforded by the Union, or required by Union law, the Union should act as a respondent, unless the claims concerning such treatment are of minor importance, having regard to the potential financial responsibility involved and the legal issues raised, in relation to the claims concerning treatment afforded by the Member State. |
| --- | --- |

(10)

In certain circumstances, it is essential, in order to ensure that the interests of the Union can be appropriately safeguarded, that the Union itself
  may
  act as a respondent in disputes involving treatment afforded by a Member State. This may be so in particular where the dispute also involves treatment afforded by the Union, where it appears that the treatment afforded by a Member State is required by Union law, where similar claims
  have been lodged
  against other Member States or where the case involves issues of law, the resolution of which may have an impact on
  current or
  possible future cases against other Member States or the Union. Where a dispute concerns partially treatment afforded by the Union, or required by Union law, the Union should act as a respondent, unless the claims concerning such treatment are of minor importance, having regard to the potential financial responsibility involved and the legal issues raised, in relation to the claims concerning treatment afforded by the Member State.

may

have been lodged

current or

Amendment 11

Amendment 11

Proposal for a regulation

Proposal for a regulation

Recital 12

Recital 12

| Text proposed by the Commission | Amendment |
| --- | --- |
| (12) | It is appropriate that
  the Commission decide, within the framework set down in this regulation, whether the Union should be the respondent or whether a Member State should act as respondent. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(12)

It is appropriate that
  the Commission decide, within the framework set down in this regulation, whether the Union should be the respondent or whether a Member State should act as respondent.

It is appropriate that

| (12) | In order to create a workable system,
  the Commission
  should
  decide, within the framework set down in this regulation, whether the Union should be the respondent or whether a Member State should act as respondent
  and inform the European Parliament and the Council of any such decision as part of its annual reporting on the implementation of this Regulation
  . |
| --- | --- |

(12)

In order to create a workable system,
  the Commission
  should
  decide, within the framework set down in this regulation, whether the Union should be the respondent or whether a Member State should act as respondent
  and inform the European Parliament and the Council of any such decision as part of its annual reporting on the implementation of this Regulation
  .

In order to create a workable system,

should

and inform the European Parliament and the Council of any such decision as part of its annual reporting on the implementation of this Regulation

Amendment 12

Amendment 12

Proposal for a regulation

Proposal for a regulation

Recital 14

Recital 14

| Text proposed by the Commission | Amendment |
| --- | --- |
| (14) | Equally, when a Member State acts as respondent it is appropriate that it
  keep
  the Commission informed of developments in the case and that the Commission can, where appropriate, require that the Member State acting as respondent takes a specific position on matters having
  a Union interest
  . |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(14)

Equally, when a Member State acts as respondent it is appropriate that it
  keep
  the Commission informed of developments in the case and that the Commission can, where appropriate, require that the Member State acting as respondent takes a specific position on matters having
  a Union interest
  .

keep

a Union interest

| (14) | Equally, when a Member State acts as respondent it is appropriate that it
  keeps
  the Commission informed of developments in the case and that the Commission can, where appropriate, require that the Member State acting as respondent takes a specific position on matters having
  an impact on the overriding interests of the Union
  . |
| --- | --- |

(14)

Equally, when a Member State acts as respondent it is appropriate that it
  keeps
  the Commission informed of developments in the case and that the Commission can, where appropriate, require that the Member State acting as respondent takes a specific position on matters having
  an impact on the overriding interests of the Union
  .

keeps

an impact on the overriding interests of the Union

Amendment 13

Amendment 13

Proposal for a regulation

Proposal for a regulation

Recital 15

Recital 15

| Text proposed by the Commission | Amendment |
| --- | --- |
| (15) | A Member State may at any time accept that it would be financially responsible in the event that compensation is to be paid. In such a case the Member State and the Commission may enter into arrangements for the periodic payment of costs and for the payment of any compensation. Such acceptance does not imply that the Member State accepts that the claim under dispute is well founded. The Commission
  should be able to
  adopt a decision requiring the Member State to make provision for such costs. In the event that the tribunal awards costs to the Union, the Commission should ensure that any advance payment of costs is immediately reimbursed to the Member State concerned. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(15)

A Member State may at any time accept that it would be financially responsible in the event that compensation is to be paid. In such a case the Member State and the Commission may enter into arrangements for the periodic payment of costs and for the payment of any compensation. Such acceptance does not imply that the Member State accepts that the claim under dispute is well founded. The Commission
  should be able to
  adopt a decision requiring the Member State to make provision for such costs. In the event that the tribunal awards costs to the Union, the Commission should ensure that any advance payment of costs is immediately reimbursed to the Member State concerned.

should be able to

| (15) | Without prejudice to the outcome of the arbitration proceedings,
  a Member State may at any time accept that it would be financially responsible in the event that compensation is to be paid. In such a case the Member State and the Commission may enter into arrangements for the periodic payment of costs and for the payment of any compensation. Such acceptance does not imply
  in any legal manner
  that the Member State accepts that the claim under dispute is well founded. The Commission
  may in such a case
  adopt a decision requiring the Member State to make provision for such costs. In the event that the tribunal awards costs to the Union, the Commission should ensure that any advance payment of costs is immediately reimbursed to the Member State concerned. |
| --- | --- |

(15)

Without prejudice to the outcome of the arbitration proceedings,
  a Member State may at any time accept that it would be financially responsible in the event that compensation is to be paid. In such a case the Member State and the Commission may enter into arrangements for the periodic payment of costs and for the payment of any compensation. Such acceptance does not imply
  in any legal manner
  that the Member State accepts that the claim under dispute is well founded. The Commission
  may in such a case
  adopt a decision requiring the Member State to make provision for such costs. In the event that the tribunal awards costs to the Union, the Commission should ensure that any advance payment of costs is immediately reimbursed to the Member State concerned.

Without prejudice to the outcome of the arbitration proceedings,

in any legal manner

may in such a case

Amendment 14

Amendment 14

Proposal for a regulation

Proposal for a regulation

Recital 16

Recital 16

| Text proposed by the Commission | Amendment |
| --- | --- |
| (16) | In some cases, it may be appropriate to reach a settlement in order to avoid costly and unnecessary arbitration. It is necessary to lay down
  a
  procedure for making such settlements. Such a procedure should permit the Commission, acting in accordance with the examination procedure, to settle a case where this would be in the interests of the Union. Where the case concerns treatment afforded by a Member State, it is appropriate that there should be close co-operation and consultations between the Commission and the Member State concerned. The Member State should remain free to settle the case at all times, provided that it accepts full financial responsibility and that any such settlement is consistent with Union law and not against the interests of the Union. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(16)

In some cases, it may be appropriate to reach a settlement in order to avoid costly and unnecessary arbitration. It is necessary to lay down
  a
  procedure for making such settlements. Such a procedure should permit the Commission, acting in accordance with the examination procedure, to settle a case where this would be in the interests of the Union. Where the case concerns treatment afforded by a Member State, it is appropriate that there should be close co-operation and consultations between the Commission and the Member State concerned. The Member State should remain free to settle the case at all times, provided that it accepts full financial responsibility and that any such settlement is consistent with Union law and not against the interests of the Union.

a

| (16) | In some cases, it may be appropriate to reach a settlement in order to avoid costly and unnecessary arbitration. It is necessary to lay down
  an effective and swift
  procedure for making such settlements. Such a procedure should permit the Commission, acting in accordance with the examination procedure, to settle a case where this would be in the interests of the Union. Where the case concerns treatment afforded by a Member State, it is appropriate that there should be close co-operation and consultations between the Commission and the Member State concerned
  , including on the proceedings of the settlement procedure and on the amount of monetary compensation.
  The Member State should remain free to settle the case at all times, provided that it accepts full financial responsibility and that any such settlement is consistent with Union law and not against the interests of the Union
  as a whole
  . |
| --- | --- |

(16)

In some cases, it may be appropriate to reach a settlement in order to avoid costly and unnecessary arbitration. It is necessary to lay down
  an effective and swift
  procedure for making such settlements. Such a procedure should permit the Commission, acting in accordance with the examination procedure, to settle a case where this would be in the interests of the Union. Where the case concerns treatment afforded by a Member State, it is appropriate that there should be close co-operation and consultations between the Commission and the Member State concerned
  , including on the proceedings of the settlement procedure and on the amount of monetary compensation.
  The Member State should remain free to settle the case at all times, provided that it accepts full financial responsibility and that any such settlement is consistent with Union law and not against the interests of the Union
  as a whole
  .

an effective and swift

, including on the proceedings of the settlement procedure and on the amount of monetary compensation.

as a whole

Amendment 15

Amendment 15

Proposal for a regulation

Proposal for a regulation

Recital 18

Recital 18

| Text proposed by the Commission | Amendment |
| --- | --- |
| (18) | The Commission should consult closely with the Member State concerned in order to reach agreement on the apportionment of financial responsibility. Where the Commission determines that a Member State is responsible, and the Member State does not accept that determination, the Commission should pay the award, but should address a decision to the Member State requesting it to provide the amounts concerned to the budget
  of the European Union
  , together with applicable interest. The interest payable should be that set down pursuant to
  [Article 71(4)
  of
  Council
  Regulation (
  EC
  , Euratom)
  No 1605/2002
  of
  25 June 2002
  on the
  Financial Regulation
  applicable to the general budget of the
  European Communities as amended]
  . Article 263 of the Treaty is
  avalable
  in cases where a Member State considers that the decision falls short of the criteria set out in this Regulation. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(18)

The Commission should consult closely with the Member State concerned in order to reach agreement on the apportionment of financial responsibility. Where the Commission determines that a Member State is responsible, and the Member State does not accept that determination, the Commission should pay the award, but should address a decision to the Member State requesting it to provide the amounts concerned to the budget
  of the European Union
  , together with applicable interest. The interest payable should be that set down pursuant to
  [Article 71(4)
  of
  Council
  Regulation (
  EC
  , Euratom)
  No 1605/2002
  of
  25 June 2002
  on the
  Financial Regulation
  applicable to the general budget of the
  European Communities as amended]
  . Article 263 of the Treaty is
  avalable
  in cases where a Member State considers that the decision falls short of the criteria set out in this Regulation.

of the European Union

[Article 71(4)

Council

EC

No 1605/2002

25 June 2002

Financial Regulation

European Communities as amended]

avalable

| (18) | The Commission should consult closely with the Member State concerned in order to reach agreement on the apportionment of financial responsibility. Where the Commission determines that a Member State is responsible, and the Member State does not accept that determination, the Commission should pay the award, but should address a decision to the Member State requesting it to provide the amounts concerned to the
  Union
  budget, together with applicable interest. The interest payable should be that set down pursuant to
  Article 78(4)
  of Regulation (
  EU
  , Euratom)
  No 966/2012 of the European Parliament and of the Council
  of
  25 October 2012
  on the
  financial rules
  applicable to the general budget of the
  Union

   (3). Article 263 of the Treaty on the Functioning of the European Union is
  available
  in cases where a Member State considers that the decision falls short of the criteria set out in this Regulation. |
| --- | --- |

(18)

The Commission should consult closely with the Member State concerned in order to reach agreement on the apportionment of financial responsibility. Where the Commission determines that a Member State is responsible, and the Member State does not accept that determination, the Commission should pay the award, but should address a decision to the Member State requesting it to provide the amounts concerned to the
  Union
  budget, together with applicable interest. The interest payable should be that set down pursuant to
  Article 78(4)
  of Regulation (
  EU
  , Euratom)
  No 966/2012 of the European Parliament and of the Council
  of
  25 October 2012
  on the
  financial rules
  applicable to the general budget of the
  Union

   (3). Article 263 of the Treaty on the Functioning of the European Union is
  available
  in cases where a Member State considers that the decision falls short of the criteria set out in this Regulation.

Union

Article 78(4)

EU

No 966/2012 of the European Parliament and of the Council

25 October 2012

financial rules

Union

3

on the Functioning of the European Union

available

Amendment 16

Amendment 16

Proposal for a regulation

Proposal for a regulation

Recital 19

Recital 19

| Text proposed by the Commission | Amendment |
| --- | --- |
| (19) | The Union budget should provide coverage of the expenditure resulting from agreements concluded pursuant to Article 218 of the Treaty providing for
  investor-state
  dispute settlement. Where Member States have financial responsibility pursuant to this Regulation, the Union should be able to either accumulate the contributions of the Member State concerned first before implementing the relevant expenditure or implement the relevant expenditure first and be reimbursed by the Member States concerned after. Use of both of these mechanisms of budgetary treatment should be possible, depending on what is feasible, in particular in terms of timing. For both mechanisms, the contributions or reimbursements paid by the Member States should be treated as internal assigned revenue of the Union budget. The appropriations arising from this internal assigned revenue should not only cover the relevant expenditure but they should also be eligible for replenishment of other parts of the Union budget which provided the initial appropriations to implement the relevant expenditure under the second mechanism. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(19)

The Union budget should provide coverage of the expenditure resulting from agreements concluded pursuant to Article 218 of the Treaty providing for
  investor-state
  dispute settlement. Where Member States have financial responsibility pursuant to this Regulation, the Union should be able to either accumulate the contributions of the Member State concerned first before implementing the relevant expenditure or implement the relevant expenditure first and be reimbursed by the Member States concerned after. Use of both of these mechanisms of budgetary treatment should be possible, depending on what is feasible, in particular in terms of timing. For both mechanisms, the contributions or reimbursements paid by the Member States should be treated as internal assigned revenue of the Union budget. The appropriations arising from this internal assigned revenue should not only cover the relevant expenditure but they should also be eligible for replenishment of other parts of the Union budget which provided the initial appropriations to implement the relevant expenditure under the second mechanism.

investor-state

| (19) | The Union budget should provide coverage of the expenditure resulting from agreements concluded pursuant to Article 218 of the Treaty providing for
  investor-to-state
  dispute settlement. Where Member States have financial responsibility pursuant to this Regulation, the Union should be able to either accumulate the contributions of the Member State concerned first before implementing the relevant expenditure or implement the relevant expenditure first and be reimbursed by the Member States concerned after. Use of both of these mechanisms of budgetary treatment should be possible, depending on what is feasible, in particular in terms of timing. For both mechanisms, the contributions or reimbursements paid by the Member States should be treated as internal assigned revenue of the Union budget. The appropriations arising from this internal assigned revenue should not only cover the relevant expenditure but they should also be eligible for replenishment of other parts of the Union budget which provided the initial appropriations to implement the relevant expenditure under the second mechanism. |
| --- | --- |

(19)

The Union budget should provide coverage of the expenditure resulting from agreements concluded pursuant to Article 218 of the Treaty providing for
  investor-to-state
  dispute settlement. Where Member States have financial responsibility pursuant to this Regulation, the Union should be able to either accumulate the contributions of the Member State concerned first before implementing the relevant expenditure or implement the relevant expenditure first and be reimbursed by the Member States concerned after. Use of both of these mechanisms of budgetary treatment should be possible, depending on what is feasible, in particular in terms of timing. For both mechanisms, the contributions or reimbursements paid by the Member States should be treated as internal assigned revenue of the Union budget. The appropriations arising from this internal assigned revenue should not only cover the relevant expenditure but they should also be eligible for replenishment of other parts of the Union budget which provided the initial appropriations to implement the relevant expenditure under the second mechanism.

investor-to-state

Amendment 17

Amendment 17

Proposal for a regulation

Proposal for a regulation

Article 2 — point b

Article 2 — point b

| Text proposed by the Commission | Amendment |
| --- | --- |
| (b) | ‘costs arising from the arbitration’ means the fees and costs of the arbitration tribunal and the costs of representation and expenses awarded to the claimant by the arbitration tribunal; |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(b)

‘costs arising from the arbitration’ means the fees and costs of the arbitration tribunal and the costs of representation and expenses awarded to the claimant by the arbitration tribunal;

| (b) | ‘costs arising from the arbitration’ means the fees and costs of the arbitration tribunal
  , arbitration institution
  and the costs of representation and expenses awarded to the claimant by the arbitration tribunal; |
| --- | --- |

(b)

‘costs arising from the arbitration’ means the fees and costs of the arbitration tribunal
  , arbitration institution
  and the costs of representation and expenses awarded to the claimant by the arbitration tribunal;

, arbitration institution

Amendment 18

Amendment 18

Proposal for a regulation

Proposal for a regulation

Article 2 — point c

Article 2 — point c

| Text proposed by the Commission | Amendment |
| --- | --- |
| (c) | ‘dispute’ means a claim brought by a claimant against the Union pursuant to an agreement and on which an arbitration tribunal will rule; |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(c)

‘dispute’ means a claim brought by a claimant against the Union pursuant to an agreement and on which an arbitration tribunal will rule;

| (c) | ‘dispute’ means a claim brought by a claimant against the Union
  or a Member State
  pursuant to an agreement and on which an arbitration tribunal will rule; |
| --- | --- |

(c)

‘dispute’ means a claim brought by a claimant against the Union
  or a Member State
  pursuant to an agreement and on which an arbitration tribunal will rule;

or a Member State

Amendment 19

Amendment 19

Proposal for a regulation

Proposal for a regulation

Article 2 — point j a (new)

Article 2 — point j a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (ja) | ‘overriding interests of the Union’ means any of the following: |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(ja)

(ja)

‘overriding interests of the Union’ means any of the following:

‘overriding interests of the Union’ means any of the following:

| | (i) | there is a serious threat to the consistent or uniform application or implementation of investment provisions of the agreement subject to the investor-to-state dispute to which the Union is a party, |
| --- | --- | --- |

(i)

(i)

there is a serious threat to the consistent or uniform application or implementation of investment provisions of the agreement subject to the investor-to-state dispute to which the Union is a party,

there is a serious threat to the consistent or uniform application or implementation of investment provisions of the agreement subject to the investor-to-state dispute to which the Union is a party,

| | (ii) | a Member State measure may conflict with the development of the Union's future investment policy, |
| --- | --- | --- |

(ii)

(ii)

a Member State measure may conflict with the development of the Union's future investment policy,

a Member State measure may conflict with the development of the Union's future investment policy,

| | (iii) | the dispute implies a possible significant financial impact on the Union budget in a given year or as part of the multiannual financial framework. |
| --- | --- | --- |

(iii)

(iii)

the dispute implies a possible significant financial impact on the Union budget in a given year or as part of the multiannual financial framework.

the dispute implies a possible significant financial impact on the Union budget in a given year or as part of the multiannual financial framework.

Amendment 20

Amendment 20

Proposal for a regulation

Proposal for a regulation

Article 3 — paragraph 2

Article 3 — paragraph 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| 2.   Where provided for in this Regulation, the Commission shall adopt a decision determining the financial responsibility of the Member State concerned in accordance with the criteria laid down in paragraph 1. | 2.   Where provided for in this Regulation, the Commission shall adopt a decision determining the financial responsibility of the Member State concerned in accordance with the criteria laid down in paragraph 1.
  The European Parliament and the Council shall be informed of such a decision. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

2.   Where provided for in this Regulation, the Commission shall adopt a decision determining the financial responsibility of the Member State concerned in accordance with the criteria laid down in paragraph 1.

2.   Where provided for in this Regulation, the Commission shall adopt a decision determining the financial responsibility of the Member State concerned in accordance with the criteria laid down in paragraph 1.
  The European Parliament and the Council shall be informed of such a decision.

The European Parliament and the Council shall be informed of such a decision.

Amendment 21

Amendment 21

Proposal for a regulation

Proposal for a regulation

Article 7 — paragraph 1

Article 7 — paragraph 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| As soon as the Commission receives notice by which a claimant states its intention to initiate arbitration proceedings,
  in accordance with the provisions of an agreement,
  it shall notify the Member State concerned. | As soon as the Commission receives notice by which a claimant states its intention to initiate arbitration proceedings
  , or as soon as the Commission is informed about a request for consultations or a claim against a Member State,
  it shall notify the Member State concerned
  and inform the European Parliament and the Council on any prior request from a claimant for consultations, on the notice by which a claimant states its intention to initiate arbitration proceedings against the Union or a Member State within 15 working days of receiving the notice, including the name of the claimant, the provisions of the agreement alleged to have been breached, the economic sector involved, the treatment alleged to be in breach of the agreement and the amount of damages claimed. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

As soon as the Commission receives notice by which a claimant states its intention to initiate arbitration proceedings,
  in accordance with the provisions of an agreement,
  it shall notify the Member State concerned.

in accordance with the provisions of an agreement,

As soon as the Commission receives notice by which a claimant states its intention to initiate arbitration proceedings
  , or as soon as the Commission is informed about a request for consultations or a claim against a Member State,
  it shall notify the Member State concerned
  and inform the European Parliament and the Council on any prior request from a claimant for consultations, on the notice by which a claimant states its intention to initiate arbitration proceedings against the Union or a Member State within 15 working days of receiving the notice, including the name of the claimant, the provisions of the agreement alleged to have been breached, the economic sector involved, the treatment alleged to be in breach of the agreement and the amount of damages claimed.

, or as soon as the Commission is informed about a request for consultations or a claim against a Member State,

and inform the European Parliament and the Council on any prior request from a claimant for consultations, on the notice by which a claimant states its intention to initiate arbitration proceedings against the Union or a Member State within 15 working days of receiving the notice, including the name of the claimant, the provisions of the agreement alleged to have been breached, the economic sector involved, the treatment alleged to be in breach of the agreement and the amount of damages claimed.

Amendment 22

Amendment 22

Proposal for a regulation

Proposal for a regulation

Article 8 — paragraph 2 — point c

Article 8 — paragraph 2 — point c

| Text proposed by the Commission | Amendment |
| --- | --- |
| (c) | it is likely that
  similar claims
  will be brought
  under the same agreement against treatment afforded by other Member States and the Commission is best placed to ensure an effective and consistent defence; or, |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(c)

it is likely that
  similar claims
  will be brought
  under the same agreement against treatment afforded by other Member States and the Commission is best placed to ensure an effective and consistent defence; or,

it is likely that

will be brought

| (c) | similar claims
  or requests for consultations concerning similar claims have been lodged
  under the same agreement against treatment afforded by other Member States and the Commission is best placed to ensure an effective and consistent defence; or, |
| --- | --- |

(c)

similar claims
  or requests for consultations concerning similar claims have been lodged
  under the same agreement against treatment afforded by other Member States and the Commission is best placed to ensure an effective and consistent defence; or,

or requests for consultations concerning similar claims have been lodged

Amendment 23

Amendment 23

Proposal for a regulation

Proposal for a regulation

Article 8 — paragraph 2 — point d

Article 8 — paragraph 2 — point d

| Text proposed by the Commission | Amendment |
| --- | --- |
| (d) | the dispute raises
  unsettled
  issues of law which may
  recur in other disputes under the same or
  other
  Union
  agreements
  concerning treatment afforded by the Union or other Member States
  . |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(d)

the dispute raises
  unsettled
  issues of law which may
  recur in other disputes under the same or
  other
  Union
  agreements
  concerning treatment afforded by the Union or other Member States
  .

unsettled

recur in other disputes under the same or

Union

concerning treatment afforded by the Union or other Member States

| (d) | the dispute raises
  sensitive
  issues of law
  the resolution of
  which may
  affect the future interpretation of the agreement in question or of
  other agreements. |
| --- | --- |

(d)

the dispute raises
  sensitive
  issues of law
  the resolution of
  which may
  affect the future interpretation of the agreement in question or of
  other agreements.

sensitive

the resolution of

affect the future interpretation of the agreement in question or of

Amendment 24

Amendment 24

Proposal for a regulation

Proposal for a regulation

Article 8 — paragraph 2 a (new)

Article 8 — paragraph 2 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | 2a.
     
  Where the Union assumes to act as respondent pursuant to a decision of the Commission in accordance with paragraph 2 or the default rule set out in paragraph 1, such determination of the respondent status shall be binding on the claimant and the arbitration tribunal. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

2a.
     
  Where the Union assumes to act as respondent pursuant to a decision of the Commission in accordance with paragraph 2 or the default rule set out in paragraph 1, such determination of the respondent status shall be binding on the claimant and the arbitration tribunal.

2a.

Where the Union assumes to act as respondent pursuant to a decision of the Commission in accordance with paragraph 2 or the default rule set out in paragraph 1, such determination of the respondent status shall be binding on the claimant and the arbitration tribunal.

Amendment 25

Amendment 25

Proposal for a regulation

Proposal for a regulation

Article 8 — paragraph 4

Article 8 — paragraph 4

| Text proposed by the Commission | Amendment |
| --- | --- |
| 4.   The Commission shall inform the
  other Member States and
  the European Parliament of any dispute in which this Article is applied and the manner in which it has been applied. | 4.   The Commission shall inform the European Parliament and
  the Council
  of any dispute in which this Article is applied and the manner in which it has been applied. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

4.   The Commission shall inform the
  other Member States and
  the European Parliament of any dispute in which this Article is applied and the manner in which it has been applied.

other Member States and

4.   The Commission shall inform the European Parliament and
  the Council
  of any dispute in which this Article is applied and the manner in which it has been applied.

the Council

Amendment 26

Amendment 26

Proposal for a regulation

Proposal for a regulation

Article 9 — paragraph 1 — point b

Article 9 — paragraph 1 — point b

| Text proposed by the Commission | Amendment |
| --- | --- |
| (b) | inform the Commission of all significant procedural steps, and enter into consultations regularly and, in any event, when requested by the Commission; and, |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(b)

inform the Commission of all significant procedural steps, and enter into consultations regularly and, in any event, when requested by the Commission; and,

| (b) | inform the Commission of all significant procedural steps
  without delay
  , and enter into consultations regularly and, in any event, when requested by the Commission; and, |
| --- | --- |

(b)

inform the Commission of all significant procedural steps
  without delay
  , and enter into consultations regularly and, in any event, when requested by the Commission; and,

without delay

Amendment 27

Amendment 27

Proposal for a regulation

Proposal for a regulation

Article 9 — paragraph 2

Article 9 — paragraph 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| 2.   The Commission may, at any time,
  require
  the Member State concerned to take a particular position as regards any point of law raised by the dispute or any other
  element having a Union interest
  . | 2.   
  Where overriding interests of the Union so require,
  the Commission may, at any time
  after consultations with
  the Member State concerned,
  require that Member State
  to take a particular position as regards any point of law raised by the dispute or any other
  issue of law, the resolution of which may affect the future interpretation of the agreement in question or of other agreements
  . |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

2.   The Commission may, at any time,
  require
  the Member State concerned to take a particular position as regards any point of law raised by the dispute or any other
  element having a Union interest
  .

require

element having a Union interest

2.   
  Where overriding interests of the Union so require,
  the Commission may, at any time
  after consultations with
  the Member State concerned,
  require that Member State
  to take a particular position as regards any point of law raised by the dispute or any other
  issue of law, the resolution of which may affect the future interpretation of the agreement in question or of other agreements
  .

Where overriding interests of the Union so require,

after consultations with

require that Member State

issue of law, the resolution of which may affect the future interpretation of the agreement in question or of other agreements

Amendment 28

Amendment 28

Proposal for a regulation

Proposal for a regulation

Article 9 — paragraph 2 a (new)

Article 9 — paragraph 2 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | 2a.
     
  If the Member State concerned considers the request of the Commission as unduly compromising its effective defence, it shall enter into consultations with a view to finding an acceptable solution. Where an acceptable solution cannot be found, the Commission may take a decision requiring the Member State concerned to take a particular legal position. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

2a.
     
  If the Member State concerned considers the request of the Commission as unduly compromising its effective defence, it shall enter into consultations with a view to finding an acceptable solution. Where an acceptable solution cannot be found, the Commission may take a decision requiring the Member State concerned to take a particular legal position.

2a.

If the Member State concerned considers the request of the Commission as unduly compromising its effective defence, it shall enter into consultations with a view to finding an acceptable solution. Where an acceptable solution cannot be found, the Commission may take a decision requiring the Member State concerned to take a particular legal position.

Amendment 29

Amendment 29

Proposal for a regulation

Proposal for a regulation

Article 9 — paragraph 3

Article 9 — paragraph 3

| Text proposed by the Commission | Amendment |
| --- | --- |
| 3.   When an agreement, or the rules referred to therein, provide for the possibility of annulment, appeal or review of a point of law included in an arbitration award, the Commission may where it considers that the consistency or correctness of the interpretation of the agreement so warrant, require
  the
  Member State to lodge an application for such annulment, appeal or review. In such circumstances, representatives of the Commission shall form part of the delegation and may express the views of the Union as regards the point of law in question. | 3.   When an agreement, or the rules referred to therein, provide for the possibility of annulment, appeal or review of a point of law included in an arbitration award, the Commission may where it considers that the consistency or correctness of the interpretation of the agreement so warrant,
  after consultations with the Member State concerned,
  require
  that
  Member State to lodge an application for such annulment, appeal or review. In such circumstances, representatives of the Commission shall form part of the delegation and may express the views of the Union as regards the point of law in question. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

3.   When an agreement, or the rules referred to therein, provide for the possibility of annulment, appeal or review of a point of law included in an arbitration award, the Commission may where it considers that the consistency or correctness of the interpretation of the agreement so warrant, require
  the
  Member State to lodge an application for such annulment, appeal or review. In such circumstances, representatives of the Commission shall form part of the delegation and may express the views of the Union as regards the point of law in question.

the

3.   When an agreement, or the rules referred to therein, provide for the possibility of annulment, appeal or review of a point of law included in an arbitration award, the Commission may where it considers that the consistency or correctness of the interpretation of the agreement so warrant,
  after consultations with the Member State concerned,
  require
  that
  Member State to lodge an application for such annulment, appeal or review. In such circumstances, representatives of the Commission shall form part of the delegation and may express the views of the Union as regards the point of law in question.

after consultations with the Member State concerned,

that

Amendment 30

Amendment 30

Proposal for a regulation

Proposal for a regulation

Article 9 — paragraph 3 a (new)

Article 9 — paragraph 3 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | 3a.
     
  If the Member State concerned refuses to lodge an application for annulment, appeal or review, it shall inform the Commission within 30 days. In that case the Commission may take a decision requiring the Member State concerned to lodge an application for annulment, appeal or review. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

3a.
     
  If the Member State concerned refuses to lodge an application for annulment, appeal or review, it shall inform the Commission within 30 days. In that case the Commission may take a decision requiring the Member State concerned to lodge an application for annulment, appeal or review.

3a.

If the Member State concerned refuses to lodge an application for annulment, appeal or review, it shall inform the Commission within 30 days. In that case the Commission may take a decision requiring the Member State concerned to lodge an application for annulment, appeal or review.

Amendment 31

Amendment 31

Proposal for a regulation

Proposal for a regulation

Article 10 — point c

Article 10 — point c

| Text proposed by the Commission | Amendment |
| --- | --- |
| (c) | the Commission shall provide the Member State with all documents relating to the proceeding, so as to ensure as effective defence as possible; and, |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(c)

the Commission shall provide the Member State with all documents relating to the proceeding, so as to ensure as effective defence as possible; and,

| (c) | the Commission shall provide the Member State with all documents relating to the proceeding,
  keep the Member State informed of all significant procedural steps and enter into consultations with the Member State in any event when requested by the Member State concerned,
  so as to ensure as effective defence as possible; and, |
| --- | --- |

(c)

the Commission shall provide the Member State with all documents relating to the proceeding,
  keep the Member State informed of all significant procedural steps and enter into consultations with the Member State in any event when requested by the Member State concerned,
  so as to ensure as effective defence as possible; and,

keep the Member State informed of all significant procedural steps and enter into consultations with the Member State in any event when requested by the Member State concerned,

Amendment 32

Amendment 32

Proposal for a regulation

Proposal for a regulation

Article 10 — paragraph 1 a (new)

Article 10 — paragraph 1 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | The Commission shall regularly inform the European Parliament and the Council of developments in the arbitration proceedings referred to in the first paragraph. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

The Commission shall regularly inform the European Parliament and the Council of developments in the arbitration proceedings referred to in the first paragraph.

The Commission shall regularly inform the European Parliament and the Council of developments in the arbitration proceedings referred to in the first paragraph.

Amendment 33

Amendment 33

Proposal for a regulation

Proposal for a regulation

Article 13 — paragraph 1

Article 13 — paragraph 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| 1.   Where the Union is respondent in a dispute concerning treatment afforded, whether fully or in part, by a Member State, and the Commission considers that the settlement of the dispute would be in the interests of the Union, it shall first consult with the Member State concerned. The Member State may also initiate such consultations with the Commission. | 1.   Where the Union is respondent in a dispute concerning treatment afforded, whether fully or in part, by a Member State, and the Commission considers that the settlement of the dispute would be in the interests of the Union, it shall first consult with the Member State concerned. The Member State may also initiate such consultations with the Commission.
  The Member State and the Commission shall ensure mutual understanding of the legal situation and possible consequences and avoid any disagreement with a view to the settlement of the case. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

1.   Where the Union is respondent in a dispute concerning treatment afforded, whether fully or in part, by a Member State, and the Commission considers that the settlement of the dispute would be in the interests of the Union, it shall first consult with the Member State concerned. The Member State may also initiate such consultations with the Commission.

1.   Where the Union is respondent in a dispute concerning treatment afforded, whether fully or in part, by a Member State, and the Commission considers that the settlement of the dispute would be in the interests of the Union, it shall first consult with the Member State concerned. The Member State may also initiate such consultations with the Commission.
  The Member State and the Commission shall ensure mutual understanding of the legal situation and possible consequences and avoid any disagreement with a view to the settlement of the case.

The Member State and the Commission shall ensure mutual understanding of the legal situation and possible consequences and avoid any disagreement with a view to the settlement of the case.

Amendment 34

Amendment 34

Proposal for a regulation

Proposal for a regulation

Article 13 — paragraph 3

Article 13 — paragraph 3

| Text proposed by the Commission | Amendment |
| --- | --- |
| 3.   In the event that the Member State does not consent to settle the dispute, the Commission may settle the dispute where overriding interests of the Union so require. | 3.   In the event that the Member State does not consent to settle the dispute, the Commission may settle the dispute where overriding interests of the Union so require.
  The Commission shall provide the European Parliament and the Council with all relevant information about the Commission's decision to settle the dispute, in particular its justification. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

3.   In the event that the Member State does not consent to settle the dispute, the Commission may settle the dispute where overriding interests of the Union so require.

3.   In the event that the Member State does not consent to settle the dispute, the Commission may settle the dispute where overriding interests of the Union so require.
  The Commission shall provide the European Parliament and the Council with all relevant information about the Commission's decision to settle the dispute, in particular its justification.

The Commission shall provide the European Parliament and the Council with all relevant information about the Commission's decision to settle the dispute, in particular its justification.

Amendment 35

Amendment 35

Proposal for a regulation

Proposal for a regulation

Article 14 — paragraph 3 a (new)

Article 14 — paragraph 3 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | 3a.
     
  Where a Member State is respondent in a dispute exclusively concerning treatment afforded by its authorities and decides to settle the dispute, it shall notify the Commission of the draft settlement arrangement and shall inform the Commission of the negotiation and the implementation of the settlement. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

3a.
     
  Where a Member State is respondent in a dispute exclusively concerning treatment afforded by its authorities and decides to settle the dispute, it shall notify the Commission of the draft settlement arrangement and shall inform the Commission of the negotiation and the implementation of the settlement.

3a.

Where a Member State is respondent in a dispute exclusively concerning treatment afforded by its authorities and decides to settle the dispute, it shall notify the Commission of the draft settlement arrangement and shall inform the Commission of the negotiation and the implementation of the settlement.

Amendment 36

Amendment 36

Proposal for a regulation

Proposal for a regulation

Article 17 — paragraph 1

Article 17 — paragraph 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| 1.   Where the Union acts as respondent pursuant to Article 8, and the Commission considers that the award or settlement in question should be paid, in part or in full, by the Member State concerned on the basis of the criteria laid down in Article 3(1), the procedure set out in paragraphs 2 to 5 shall apply. | 1.   Where the Union acts as respondent pursuant to Article 8, and the Commission considers that the award or settlement in question should be paid, in part or in full, by the Member State concerned on the basis of the criteria laid down in Article 3(1), the procedure set out in paragraphs 2 to 5
  of this Article
  shall apply.
  That procedure shall also apply where the Union, acting as respondent pursuant to Article 8, is successful in the arbitration but has to bear any costs arising from the arbitration. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

1.   Where the Union acts as respondent pursuant to Article 8, and the Commission considers that the award or settlement in question should be paid, in part or in full, by the Member State concerned on the basis of the criteria laid down in Article 3(1), the procedure set out in paragraphs 2 to 5 shall apply.

1.   Where the Union acts as respondent pursuant to Article 8, and the Commission considers that the award or settlement in question should be paid, in part or in full, by the Member State concerned on the basis of the criteria laid down in Article 3(1), the procedure set out in paragraphs 2 to 5
  of this Article
  shall apply.
  That procedure shall also apply where the Union, acting as respondent pursuant to Article 8, is successful in the arbitration but has to bear any costs arising from the arbitration.

of this Article

That procedure shall also apply where the Union, acting as respondent pursuant to Article 8, is successful in the arbitration but has to bear any costs arising from the arbitration.

Amendment 37

Amendment 37

Proposal for a regulation

Proposal for a regulation

Article 17 — paragraph 3

Article 17 — paragraph 3

| Text proposed by the Commission | Amendment |
| --- | --- |
| 3.   Within three months of receipt of the request for payment of the final award or settlement, the Commission shall adopt a decision addressed to the Member State concerned, determining the amount to be paid by that Member State. | 3.   Within three months of receipt of the request for payment of the final award or settlement, the Commission shall adopt a decision addressed to the Member State concerned, determining the amount to be paid by that Member State.
  The Commission shall inform the European Parliament and Council of such decision and its financial reasoning. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

3.   Within three months of receipt of the request for payment of the final award or settlement, the Commission shall adopt a decision addressed to the Member State concerned, determining the amount to be paid by that Member State.

3.   Within three months of receipt of the request for payment of the final award or settlement, the Commission shall adopt a decision addressed to the Member State concerned, determining the amount to be paid by that Member State.
  The Commission shall inform the European Parliament and Council of such decision and its financial reasoning.

The Commission shall inform the European Parliament and Council of such decision and its financial reasoning.

Amendment 38

Amendment 38

Proposal for a regulation

Proposal for a regulation

Article 17 — paragraph 4

Article 17 — paragraph 4

| Text proposed by the Commission | Amendment |
| --- | --- |
| 4.   Unless the Member State concerned objects to the Commission's determination within one month, the Member State concerned shall compensate
  the budget of
  the Union for the payment of the award or the settlement no later than three months after the Commission's decision. The Member State concerned shall be liable for any interest due at the rate applying to other monies owed to the
  budget of the
  Union. | 4.   Unless the Member State concerned objects to the Commission's determination within one month, the Member State concerned shall compensate
  with the equivalent amount
  the Union
  budget
  for the payment of the award or the settlement no later than three months after the Commission's decision. The Member State concerned shall be liable for any interest due at the rate applying to other monies owed to the Union
  budget
  . |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

4.   Unless the Member State concerned objects to the Commission's determination within one month, the Member State concerned shall compensate
  the budget of
  the Union for the payment of the award or the settlement no later than three months after the Commission's decision. The Member State concerned shall be liable for any interest due at the rate applying to other monies owed to the
  budget of the
  Union.

the budget of

budget of the

4.   Unless the Member State concerned objects to the Commission's determination within one month, the Member State concerned shall compensate
  with the equivalent amount
  the Union
  budget
  for the payment of the award or the settlement no later than three months after the Commission's decision. The Member State concerned shall be liable for any interest due at the rate applying to other monies owed to the Union
  budget
  .

with the equivalent amount

budget

budget

Amendment 39

Amendment 39

Proposal for a regulation

Proposal for a regulation

Article 18 — paragraph 1

Article 18 — paragraph 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| 1.   The Commission may adopt a decision requiring the Member State concerned to make financial contributions to
  the budget of
  the Union in respect of
  any
  costs arising from the arbitration
  where it considers that the Member State will be liable to pay any award pursuant to
  the criteria set down in Article 3. | 1.   
  Where the Union acts as respondent pursuant to Article 8, and unless an arrangement has been entered into pursuant to Article 11,
  the Commission may adopt a decision requiring the Member State concerned to make
  advance
  financial contributions to the Union
  budget
  in respect of
  foreseeable or incurred
  costs arising from the arbitration.
  Such a decision on financial contributions shall be proportionate, taking into account
  the criteria set down in Article 3. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

1.   The Commission may adopt a decision requiring the Member State concerned to make financial contributions to
  the budget of
  the Union in respect of
  any
  costs arising from the arbitration
  where it considers that the Member State will be liable to pay any award pursuant to
  the criteria set down in Article 3.

the budget of

any

where it considers that the Member State will be liable to pay any award pursuant to

1.   
  Where the Union acts as respondent pursuant to Article 8, and unless an arrangement has been entered into pursuant to Article 11,
  the Commission may adopt a decision requiring the Member State concerned to make
  advance
  financial contributions to the Union
  budget
  in respect of
  foreseeable or incurred
  costs arising from the arbitration.
  Such a decision on financial contributions shall be proportionate, taking into account
  the criteria set down in Article 3.

Where the Union acts as respondent pursuant to Article 8, and unless an arrangement has been entered into pursuant to Article 11,

advance

budget

foreseeable or incurred

Such a decision on financial contributions shall be proportionate, taking into account

Amendment 40

Amendment 40

Proposal for a regulation

Proposal for a regulation

Article 19

Article 19

| Text proposed by the Commission | Amendment |
| --- | --- |
| A Member State's reimbursement or payment to
  the budget of
  the Union, for the payment of an award or a settlement or any costs, shall be considered as internal assigned revenue in the sense of
  [Article 18
  of
  Council
  Regulation (
  EC
  , Euratom)
  No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the General Budget of the European Communities]
  . It may be used to cover expenditure resulting from agreements concluded pursuant to Article 218 of the Treaty providing for
  investor-state
  dispute settlement or to replenish appropriations initially provided to cover the payment of an award or a settlement or any costs. | A Member State's reimbursement or payment to the Union
  budget
  , for the payment of an award or a settlement or any costs,
  including those referred to in Article 18(1) of this Regulation,
  shall be considered as internal assigned revenue in the sense of
  Article 21(4)
  of Regulation (
  EU
  , Euratom)
  No 966/2012
  . It may be used to cover expenditure resulting from agreements concluded pursuant to Article 218 of the Treaty providing for
  investor-to-state
  dispute settlement or to replenish appropriations initially provided to cover the payment of an award or a settlement or any costs. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

A Member State's reimbursement or payment to
  the budget of
  the Union, for the payment of an award or a settlement or any costs, shall be considered as internal assigned revenue in the sense of
  [Article 18
  of
  Council
  Regulation (
  EC
  , Euratom)
  No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the General Budget of the European Communities]
  . It may be used to cover expenditure resulting from agreements concluded pursuant to Article 218 of the Treaty providing for
  investor-state
  dispute settlement or to replenish appropriations initially provided to cover the payment of an award or a settlement or any costs.

the budget of

[Article 18

Council

EC

No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the General Budget of the European Communities]

investor-state

A Member State's reimbursement or payment to the Union
  budget
  , for the payment of an award or a settlement or any costs,
  including those referred to in Article 18(1) of this Regulation,
  shall be considered as internal assigned revenue in the sense of
  Article 21(4)
  of Regulation (
  EU
  , Euratom)
  No 966/2012
  . It may be used to cover expenditure resulting from agreements concluded pursuant to Article 218 of the Treaty providing for
  investor-to-state
  dispute settlement or to replenish appropriations initially provided to cover the payment of an award or a settlement or any costs.

budget

including those referred to in Article 18(1) of this Regulation,

Article 21(4)

EU

No 966/2012

investor-to-state

Amendment 41

Amendment 41

Proposal for a regulation

Proposal for a regulation

Article 20 — paragraph 1

Article 20 — paragraph 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| 1.   The Commission shall be assisted by [the Committee for Investment Agreements established by Regulation
  [2010/197 COD]]
  . That committee shall be a committee within the meaning of Regulation (EU) No 182/2011. | 1.   The Commission shall be assisted by the Committee for Investment Agreements established by Regulation
  (EU) No 1219/2012 of the European Parliament and of the Council of 12 December 2012 establishing transitional arrangements for bilateral investment agreements between Member States and third countries

   (4)

  .
  That committee shall be a committee within the meaning of Regulation (EU) No 182/2011. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

1.   The Commission shall be assisted by [the Committee for Investment Agreements established by Regulation
  [2010/197 COD]]
  . That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

[2010/197 COD]]

1.   The Commission shall be assisted by the Committee for Investment Agreements established by Regulation
  (EU) No 1219/2012 of the European Parliament and of the Council of 12 December 2012 establishing transitional arrangements for bilateral investment agreements between Member States and third countries

   (4)

  .
  That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

(EU) No 1219/2012 of the European Parliament and of the Council of 12 December 2012 establishing transitional arrangements for bilateral investment agreements between Member States and third countries

4

.

Amendment 42

Amendment 42

Proposal for a regulation

Proposal for a regulation

Article 21 — paragraph 1

Article 21 — paragraph 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| 1.   The Commission shall submit a report on the operation of this Regulation to the European Parliament and the Council at regular intervals. The first report shall be submitted no later than
  three
  years after the entry into force of this Regulation. Subsequent reports shall be submitted every three years thereafter. | 1.   The Commission shall submit a
  detailed
  report on the operation of this Regulation to the European Parliament and the Council at regular intervals.
  That report shall contain all relevant information including the listing of the claims made against the Union or the Member States, related proceedings, rulings and the financial impact on the respective budgets.
  The first report shall be submitted no later than
  five
  years after the entry into force of this Regulation. Subsequent reports shall be submitted every three years thereafter
  unless the budgetary authority, comprised of the European Parliament and the Council, decides otherwise. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

1.   The Commission shall submit a report on the operation of this Regulation to the European Parliament and the Council at regular intervals. The first report shall be submitted no later than
  three
  years after the entry into force of this Regulation. Subsequent reports shall be submitted every three years thereafter.

three

1.   The Commission shall submit a
  detailed
  report on the operation of this Regulation to the European Parliament and the Council at regular intervals.
  That report shall contain all relevant information including the listing of the claims made against the Union or the Member States, related proceedings, rulings and the financial impact on the respective budgets.
  The first report shall be submitted no later than
  five
  years after the entry into force of this Regulation. Subsequent reports shall be submitted every three years thereafter
  unless the budgetary authority, comprised of the European Parliament and the Council, decides otherwise.

detailed

That report shall contain all relevant information including the listing of the claims made against the Union or the Member States, related proceedings, rulings and the financial impact on the respective budgets.

five

unless the budgetary authority, comprised of the European Parliament and the Council, decides otherwise.

Amendment 43

Amendment 43

Proposal for a regulation

Proposal for a regulation

Article 21 — paragraph 1 a (new)

Article 21 — paragraph 1 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | 1a.
     
  The Commission shall annually submit to the European Parliament and to the Council a list of requests for consultations from claimants, claims and arbitration rulings. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

1a.
     
  The Commission shall annually submit to the European Parliament and to the Council a list of requests for consultations from claimants, claims and arbitration rulings.

1a.

The Commission shall annually submit to the European Parliament and to the Council a list of requests for consultations from claimants, claims and arbitration rulings.

---

(1)  The matter was referred back to the committee responsible for reconsideration pursuant to Rule 57(2), second subparagraph (A7-0124/2013).

1

(2)  
  Judgment of the Court of Justice of 9 September 2008 in Joined Cases C-120/06 P and C-121/06 P, FIAMM and Fedon v Council and Commission ([2008] ECR I-6513)

2

Judgment of the Court of Justice of 9 September 2008 in Joined Cases C-120/06 P and C-121/06 P, FIAMM and Fedon v Council and Commission ([2008] ECR I-6513)

(3)  

  OJ L 298, 26.10.2012, p. 1.

3

OJ L 298, 26.10.2012, p. 1.

(4)  

  OJ L 351 20.12.2012, p. 40.

4

OJ L 351 20.12.2012, p. 40.

---