At today’s remote-participation sitting, the Riigikogu approved the Act that terminates the agreement between the Governments of Finland and Estonia for the promotion and protection of investments.
The Act on the Ratification of the Agreement on the Amendment and Termination of the Agreement between the Government of the Republic of Finland and the Government of the Republic of Estonia for the Promotion and Protection of Investments (294 SE), initiated by the Government, provides for the amendment of the agreement before it is terminated, because it provides that, in respect of investments made during the time that it is in force, the agreement remains in force for the following ten years after the expiry of the agreement. Thus, the agreement needs to be amended in order that, upon termination thereof, the application of the agreement will also be terminated completely.
The termination of the agreement is necessary in order to ensure that investors from all EU Member States are accorded equal treatment based on European Union legislation. The agreements for the promotion and protection of investments concern areas that are regulated by EU law – in particular the freedom of establishment and the free movement of capital and payments. Thus, the protection of investments and equal treatment of investors is regulated by EU law, and there is no need for bilateral agreements between member states. Although EU law has supremacy over agreements entered into by Member States, reliance on such agreements however may bring about unequal treatment of investors from Member States, depending on whether an investment protection agreement has been entered into or not. The European Commission has also requested termination of the mutual agreements between Member States to preclude conflicts with EU law, and has started infringement proceedings against five Member States.
91 members of the Riigikogu voted in favour of passing the Act.
At the beginning of the sitting, the Riigikogu observed a moment of silence in memory of the victims of the 1949 March deportation.
Video recordings of the sittings of the Riigikogu can be viewed at https://www.youtube.com/riigikogu.
(Please note that the recording will be uploaded with a delay.)
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