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Stanescu, Catalin-Gabriel --- "ROMANIA" [2019] ELECD 2747; in Nagy, Csongor (ed), "Investment Arbitration in Central and Eastern Europe" (Edward Elgar Publishing, 2019) 368

Book Title: Investment Arbitration in Central and Eastern Europe

Editor(s): Nagy, Csongor

Publisher: Edward Elgar Publishing

Section: Chapter 11

Section Title: ROMANIA

Author(s): Stănescu, Cătălin-Gabriel

Number of pages: 45

Abstract/Description:

The chapter addresses investor-state arbitration cases involving Romania and raises the question whether in the Romanian context investor state arbitration was a legitimate investor protection mechanism or a recipe for plundering national wealth and the state’s budget. The first part provides a detailed account of the normative aspects regarding investor protection mechanisms and arbitration in Romania. The second part presents the reader with the local background and aftermath of all the ICSID cases involving Romania (up to March 2018) and the publicly known cases that took place at ICC. As it will become apparent, most cases involved privatizations that took place in the first decade following the fall of communism, prior to Romania’s accession to the EU, and all share common traits involving corruption, investor misbehavior, questionable investments and significant financial losses for the state. While a definite answer regarding the question raised cannot be given, the chapter contends that only by pointing out the problems associated with investor-state arbitration can one find an adequate solution.