EU to co-finance Investment Court System in TTIP from its budget
The European Commission wants the new Investment Court System (ICS)
in the Transatlantic Trade and Investment Partnership (TTIP) to be
co-financed from the EU budget only, Mauro Petriccione, Deputy
Director-General at DG Trade has told MEPs. Addressing the EP’s
International Trade Committee (INTA) meeting, on 21 September, he
reassured MEPs that no national contributions would be needed to cover
the €1,5 million EU share of the total €3 million costs of the new
court.
Petriccione expressed confidence that even multiplication of
bilateral investment courts would not create an unbearable burden for
the EU budget. “We do not expect it to happen in a few years to come,”
Petriccione said, hinting that the setting up of an international
investment court could help solve the problem of a potential increase in
the number of bilateral investment courts.
While presenting the draft proposal, on 16 September, the EU Trade
Commissioner Cecilia Malmström made clear that the ICS in TTIP would be
used as a template for other agreements with third countries.
Petriccione confirmed that even China would be targeted.
He said the EU trading partners were slow to react to the draft. “We
do not expect any serious reactions before the proposal turns into a
formal position,” Petriccione said. He revealed, however, that the
initial reaction of the US was rather “cautious.” “The US will be
worried about the additional costs for business, the complexity of the
mechanism and lesser benefits for US investors than they have in mind,”
Petriccione said. “Vietnam has expressed its concern about an) ability
of developing countries to comply with a system intended for developed
countries,” he added.
