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Trade | 27 April 2022

The compatibility of the Energy Charter Treaty with EU law
Trade

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The compatibility of the Energy Charter Treaty with EU law

This study answers the question whether the Energy Charter Treaty (ECT) as an agreement binding
on the EU and the Member States is compatible with the EU Treaties.

It finds that ECT as it currently stands is not compatible with the EU Treaties and that therefore the EU institutions and the Member States are required to either withdraw from the ECT or ensure that it is amended.

The first main defect of the current text of the ECT is that the ECT adversely affects the autonomy
of EU law by enabling investment tribunals to interpret and apply EU law without introducing the
necessary safeguards that preserve the EU’s unique legal and judicial framework (autonomy of EU
law).

The second main defect is that the ECT adversely affects the operation of the EU institutions
in accordance with the EU’s constitutional framework.