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))
Date: 2013-05-23
Institutions: Committee on Budgets, Committee on Development, Committee on Economic and Monetary Affairs, Committee on International Trade, Committee on Legal Affairs, European Parliament
Subjects: agreement (EU), international agreement, investment protection, liability, private international law, settlement of disputes, trade dispute








C_2016055EN.01019601.xml










12.2.2016   


EN


Official Journal of the European Union


C 55/196





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)

(Ordinary legislative procedure: first reading)
(2016/C 055/41)

Amendment 1


Proposal for a regulation


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





Amendment 2


Proposal for a regulation


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.












(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.









Amendment 3


Proposal for a regulation


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.












(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.









Amendment 4


Proposal for a regulation


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.











Amendment 5


Proposal for a regulation


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.













Amendment 6


Proposal for a regulation


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.












(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.









Amendment 7


Proposal for a regulation


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.












(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.











Amendment 8


Proposal for a regulation


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.











Amendment 9


Proposal for a regulation


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.












(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.









Amendment 10


Proposal for a regulation


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.












(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.









Amendment 11


Proposal for a regulation


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.












(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
.









Amendment 12


Proposal for a regulation


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
.












(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
.









Amendment 13


Proposal for a regulation


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.












(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.









Amendment 14


Proposal for a regulation


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.












(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
.









Amendment 15


Proposal for a regulation


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.












(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.









Amendment 16


Proposal for a regulation


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.












(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.









Amendment 17


Proposal for a regulation


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;












(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;









Amendment 18


Proposal for a regulation


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;












(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;









Amendment 19


Proposal for a regulation


Article 2 — point j a (new)








Text proposed by the Commission




Amendment





 










(ja)






‘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,














 








 










(ii)






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.















Amendment 20


Proposal for a regulation


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.







Amendment 21


Proposal for a regulation


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.







Amendment 22


Proposal for a regulation


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,












(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,









Amendment 23


Proposal for a regulation


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
.












(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.









Amendment 24


Proposal for a regulation


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.







Amendment 25


Proposal for a regulation


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.





Amendment 26


Proposal for a regulation


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,












(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,









Amendment 27


Proposal for a regulation


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
.





Amendment 28


Proposal for a regulation


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.







Amendment 29


Proposal for a regulation


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.





Amendment 30


Proposal for a regulation


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.







Amendment 31


Proposal for a regulation


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,












(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,









Amendment 32


Proposal for a regulation


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.







Amendment 33


Proposal for a regulation


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.







Amendment 34


Proposal for a regulation


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.







Amendment 35


Proposal for a regulation


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.







Amendment 36


Proposal for a regulation


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.







Amendment 37


Proposal for a regulation


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.







Amendment 38


Proposal for a regulation


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
.





Amendment 39


Proposal for a regulation


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.





Amendment 40


Proposal for a regulation


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.





Amendment 41


Proposal for a regulation


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.





Amendment 42


Proposal for a regulation


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.







Amendment 43


Proposal for a regulation


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.








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

(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.



(4)  

OJ L 351 20.12.2012, p. 40.