Scott, Adam --- "A recipe for confusion: parallel treaties and parallel proceedings in State aid cases" [2020] ELECD 352; in Parcu, L. Pier; Monti, Giorgio; Botta, Marco (eds), "EU State Aid Law" (Edward Elgar Publishing, 2020) 170

Book Title: EU State Aid Law

Editor(s): Parcu, L. Pier; Monti, Giorgio; Botta, Marco

Publisher: Edward Elgar Publishing

Section: Chapter 8

Section Title: A recipe for confusion: parallel treaties and parallel proceedings in State aid cases

Author(s): Scott, Adam

Number of pages: 24

Abstract/Description:

National courts may find it difficult to navigate the application of EU State aid rules. Their task can be complicated when international treaties, in addition to the EU treaties, come into play. The chapter discusses the interaction of national, EU and public international law in the ongoing Achmea and Micula sagas. Both cases concern bilateral investment treaties (BITs) concluded among EU Member States before joining the Union, but usually remained in force in the post-EU accession phase as well. As recently recognized by the Court of Justice in Achmea, BITs may breach EU law, causing a breach of the principles of nondiscrimination and freedom of establishment. Similarly, the question currently discussed in Micula is whether and to what extent the damage awarded by an arbitral tribunal to an investor due to a breach of BIT may be considered an unlawful aid, in breach of EU State aid rules. The chapter analyses the parallel proceedings that Achmea and Micula have recently raised in a number of national courts (in Romania, UK and Germany), EU courts (the European Court of Justice and General Court) and international arbitral tribunals.