Change in the Constitutional Framework of the European Union with regard to regulating foreign direct investment

Since the Lisbon Treaty entered into force, the European Union (EU) has assumed powers over foreign direct investment. This article describes the system for allocating powers in this area between the Union and member states. It also comments on the powers still retained by the member states (which they exercise through bilateral investment treaties) and outlines the instruments that could make the EU’s investment policy compatible with that of member states. It focuses in particular on developments in the EU’s policy based on new global investment agreements that are about to be ratified or are still in the negotiation stage (such as the agreements with Canada, Singapore and the United States) and explores the consequences of establishing a state/investor dispute resolution system, which is envisaged by these agreements, and its compatibility with the principle of EU legal autonomy