The on-going global financial crisis has hit Europe in an especially significant manner. With the legal vacuum surrounding sovereign debt restructurings, Bilateral Investment Treaties (BITs) and Free Trade Agreements (FTAs) signed by European countries can provide grounds for litigation in future debt crises.
The sovereign debt crisis in the heart of the Eurozone has materialized such dangers, and has had an impact on the European Union’s strategy as an actor in international investment. The problems experienced by Argentina before the ICSID have made European countries more aware of the potential hidden in their BITs. This has in turn led to a careful drafting of the CETA and the TTIP, and potentially of all the other major FTAs to follow.European Business Law Review