Treaty or rough treatment

摘要

After the fall of the Berlin Wall and before central and eastern European countries began joining the European Union in 2004, officials in Brussels strongly encouraged bilateral investment treaties (BITS) between the bloc's members and their neighbours to the east, bits are inter-governmental agreements that govern disputes between foreign investors and host states. Their purpose is to protect investors against discrimination and expropriation (disputes between companies are handled separately). The European Commission hoped they would stimulate investment in the region to the benefit of both investors and newly liberated former Soviet-bloc countries. They did. Thanks in part to these treaties, inflows of capital soared. Germany, in particular, became a big investor in Hungary and the Czech Republic, BITS have become a common way to seek redress in bust-ups originating in the region, with 145 cases filed since 1989.