Littérature scientifique sur le sujet « Saving and investment – Law and legislation – European Union countries »

In the era of globalization, the attraction of foreign investments has become an important factor in promoting the economic growth of countries. Investors are constantly looking for favorable conditions for investing their capital, which involves a combination of several important factors. The investor, who is focused on getting the maximum profit with the minimum cost, before making an investment decision, will study the investment environment of the host country, the proximity to large key markets, the barriers to entry from the host country to international markets, the availability of production and energy resources, the level of political and economic stability, the number of labor force, qualifications, etc. .sh. In terms of investments in the modern world, two types of trends have been identified: 1. High-tech investments, which are mainly located in developed countries, due to the developed country's intellectual resources, key market and good opportunities for business development, and 2. Investment, which is focused on obtaining maximum profit at the expense of cheap resources and labor force, and there is no or minimal technical innovation in it. It is important for the state to attract such direct foreign investments, which will not only be focused on making profits, but will also ensure the raising of the qualifications of local staff, the introduction of technological innovations, and the social protection of employees. Thanks to the economic reforms implemented after the post-Soviet upheavals, Georgia has become an attractive place for foreign investment, however, due to the shortage of labor force and low qualifications, investments focused on cheap resources and labor force are entering the country more than high-tech ones. The entry of relatively large, high-tech investments is hindered, in addition to the scarcity of the country's workforce and relatively low qualifications, the low level of energy independence, the territories occupied by the Russian Federation of Georgia, the generally politically and economically unstable region (Tskhinvali, Abkhazia, Karabakh regions), the aggressive state - the Russian Federation. Neighborhood and high probability of potential armed conflicts. The positive factors that make Georgia attractive for foreign investors are a favorable geopolitical location with land access, moderate natural and climatic conditions, low level of corruption, less bureaucratic and simple legislation compared to other countries, high level of harmonization of national legislation with international legislation, with the European Union in 2014 and in 2017 Free trade agreements signed with China, which allow a foreign investor to export products produced on behalf of Georgia to two of the world's largest markets without any problems. Due to the fact that one of the most important factors of production - "capital" - is needed to develop the economy, and the country does not have it at this stage, attracting foreign investments is a vitally important task for the economic growth of Georgia. In developing countries like Georgia, the level of domestic savings is relatively low. In addition to this, apart from the banking system, there is no stock market. In the period 1996-2021, a total of about 23.12 billion dollars of investment came into Georgia. The first and only investor country in 1996 was Ukraine with 3753.45 thousand US dollars. In the following years, significant investments were made in Georgia from the USA (1.81 billion USD), the European Union, CIS countries and Great Britain. According to the latest data, foreign investment has entered Georgia from 74 countries, which is almost 2 times less than the number of countries with which Georgia has trade relations (export-import). Since 2003, the growth of investments had an irreversible character, however, the 2008 world economic crisis and Russia's military attack on Georgia sharply reduced this figure, and it took 6 years to restore the pre-war figure. In addition, since 2017, foreign investments in Georgia have been characterized by a decreasing trend. Pandemic year 2020 was particularly notable in terms of investment decline. Despite the fact that after the signing of the Georgia-EU association in 2014, foreign investments should have increased due to the desire to access the EU market, until 2017, their volume was decreasing. In 2017, in the history of independent Georgia, the largest level of foreign investments - 1.98 billion USD was recorded. In the same year, the agreement on free trade between Georgia and China was signed, which should also increase foreign investments due to the desire to access the Chinese market, although the country has not returned to the level of foreign investments made in 2017. On December 31, 2013, the Organic Law of Georgia "On Economic Freedom" adopted in 2011 entered into force. The law, on the one hand, regulates the limit of the amount acceptable from taxpayers - in case of the desire to increase the tax rates of income, profit, VAT and import taxes, citizens' consent is required through a referendum, and on the other hand, the amount of spending of collected taxes is controlled by the limits of the established macroeconomic parameters. After the implementation of this law, the tax burden of taxpayers was not supposed to increase, but the government took advantage of the loophole in the law and in 2017 the excise duty rate was sharply increased on cars (the excise duty on right-hand drive cars was doubled), fuel and tobacco products. The property tax has also been increased, since it does not belong to the general state tax. Since January 1, 2017, when the Estonian model of profit tax came into force, the state budget received about 500 million GEL less. To make up the deficit, either government spending had to be cut, or debt had to be incurred, or taxes had to be raised. In 2017, the government's expenses increased by 800 million GEL, we took on a debt of 400 million GEL, and the excise and property tax rates were also increased, according to which if the family had an annual income of more than 40,000 GEL, they would have already paid property tax on the car. As of May 2021, the foreign debt has increased to 24.8 billion GEL and has already violated the macroeconomic parameter written in the Law on Economic Freedom, according to which the government's debt cannot exceed 60% of GDP. From 2011, when the law was adopted, until 2013, when the law entered into force, the volume of direct foreign investments did not increase, on the contrary - it even decreased, although this can be blamed on the caution caused by the change of government in 2012. - Investors are likely to observe the possibility of a change in the country's political vector. When the law came into force in December 2013, that is, in fact from 2014, the volume of investments increased by leaps and bounds, and this dynamic continued until 2017, when taxes were increased. Since 2018, the volume of direct foreign investments has dropped almost to the level of 2011. Based on all of the above, we believe that in order to attract foreign investments, Georgia should make maximum use of those competitive advantages that will attract the attention of foreign investors. The country, which has historically been a corridor of regional and world importance, has yet to fully utilize its transport function.

This paper aims to present the level of harmonization of investment services in relation to the European investment funds’ market. The author, in an attempt to systematize different types of investment services in Europe, refers to the European Freedoms and presents the key reasons for the harmonization of investment services. An important part of the study is to present the role of investment funds in the financial sector, as well as the crucial benefits of participation in the funds. By using the method of analysis of the sources, the author makes a review of the European regulations on investment funds, both the law and the recommendations of regulators. From the perspective of recent legislation changes the study highlights their possible implications, especially for less developed countries of the European Union. Complementing the current picture of harmonization the author, by referring to the substantial transformation of the common market of the European Union in 2004, makes review of dynamics of this sector, based on basic statistics. What is worth paying attention in this context is that there is still a slight share of the newly acceding countries. Verification of accuracy of the author’s observations may become the subject of wider discussion on the harmonization of financial services in this area, taking into account time necessary to assess the impact of European regulations currently being implemented.

Since 11 October 2020, Regulation (EU) 2019/452 of the European Parliament and of the Council establishing a framework for the screening of foreign direct investment into the EU has been applied in the Member States of the European Union. Although the Regulation is automatically and uniformly applicable in all EU countries upon its entry into force – thus, no transposition into national law is required –, Romania is preparing to adopt legislation to regulate FDI due diligence at national level in line with Regulation (EU) 2019/452, in the absence of an adequate legal framework and for the purpose of implementing the Regulation. In this study, we intend to examine the current legal framework in Romania on FDI and the draft legislation mentioned above, which aims to establish a workable screening mechanism for FDI into Romania.

A European Union (EU)-wide screening regime entered into force in October 2020, marking the turning point in the Member States’ investment relations with third countries, most notably, the emerging economies of the Far East. Most Central and Eastern European (CEE) states have recently embraced novel screening solutions; some legislative proposals are still pending in a few states. These regulatory changes are the result of the socio-economic turmoil caused by the COVID-19 epidemic, which threatens a major fire sale of resources that are deemed critical for the Member States’ national security and public order. In this paper, the authors examine the existing screening mechanisms regarding foreign direct investment (FDI) in five EU countries: Austria, Germany, Hungary, Slovenia, and Poland. Given the apparent lack of comprehensive FDI screening mechanisms in Croatia, the authors consider that the findings of this comparative analysis could help Croatian legislator establish a comprehensive legal regime for FDI pouring into Croatian strategic industries. This paper argues that Croatia should introduce novel screening mechanisms along the lines of the Germanic legal tradition, most notably, the CEE and the German foreign trade and payments law. The authors suggest potential solutions de lege ferenda that would fit the scope and objectives of the screening regulation. Following the introduction, the second section of the paper glances through FDI screening mechanisms in four CEE countries. In the third section, the paper revisits the existing Croatian legislation on FDI control. The fourth section considers possible amendments thereof within the context of the German foreign trade and payments law. The fifth section summarises and concludes the paper.

Problem setting. The development of social relations, the economic well-being of the population and the stable social structure of any state in the present circumstances are conditioned by a series of factors, one of which is the development of innovative infrastructure. One of the most important directions of development of the economic sector of our country was the formation of an innovative model of the economy, which puts to law the new tasks of clarifying the purpose and social value of law as a regulator of social relations. Analysis of recent researches and publications. The current state of the study of the selected issues indicates that the sources from which public-law organizations are investing innovative activities of small and medium-sized innovative entrepreneurship in the EU are insufficient. At the same time, the state policy of the EU countries in the scientific and technical sphere is realized through the use of various instruments, which include: legislation, tax policy, size and nature of the allocation of budget funds, including for the implementation of works in priority areas, the formation and maintenance of infrastructure, personnel, etc. Target of research is to identify the public and legal means of investing small and medium innovative entrepreneurship in the EU. Article’s main body. In the EU, the innovative component of public policy encompasses the scope of national scientific institutions (institutes, research centers, university laboratories, etc.). There are government programs that receive partial funding from the state budget. The state is guided by different criterias when deciding on the financing of specific works. First, the prospect of each specific direction is evaluated from the point of view of preserving the country’s achieved position on the world market in the future. Second, the recognition at the governmental level of innovation as a vital factor of economic development, the conduct of a broad government company on the problems of innovation. The current state of regulatory support suggests that structural funds such as the European Regional Development Fund and the European Social Fund should be considered as the main public sources of investment for innovative enterprises. In particular, such funds are implementing EIC Pathfinder Pilot, FET Innovation Launchpad, EIC Transition to Innovation Activity, EIC Accelerator, Programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises (COSME) etc. Conclusions and prospects for the development. In the EU, the investment of small and medium enterprises is not homogeneous, but a large part of them, despite the large number of investment support tools for such companies, face significant challenges in accessing investment resources. Developing a successful pan-European policy requires an indepth understanding of the problems and specifics of financing the innovation activities of small and medium innovative enterprises in EU Member States.

The article examines the European experience of considering disputes in the field of social security, the ways of their prevention, the essence and methods of resolution, the possibility of borrowing positive assets of foreign states in the law enforcement practice of Ukraine is considered. Having analyzed the European experience of resolving disputes in the field of social security, three ways of their possible settlement are distinguished: 1) with the help of special courts on social security issues (sectoral justice); 2) through a civil process in general courts; 3) by means of conciliation and arbitration procedures. It was determined that a social model has developed in European countries, which is based on such values ​​common to all EU member states, such as: a close connection between the level of economic development and social progress; high level of social security, which is universal in nature; developed legislation; equal opportunities and fight against discrimination; production democracy; dialogue of social partners within the framework of contractual relations; availability of developed social infrastructure; the key role of the state in solving social problems; the struggle for employment and eradication of the phenomenon of social rejection and poverty; decent salary; social justice and solidarity in society. These basic values ​​also formed the basis of consideration and resolution of disputes in the field of social security. The listed values ​​should form the foundation of the Ukrainian theory and practice of social disputes. It was determined that the national specifics and practice of each European state provide for the use of various methods of resolving social disputes with recourse to social courts, reconciliation services, mediation, arbitration and mediation. The activity of social courts is based on the principles of tripartite cooperation (tripartism). Court cases are considered by a panel consisting of a professional judge and two non-professional judges. In addition, state mediation and mediation are effective measures for the pre-trial resolution of social disputes in the EU countries. They contribute to the relief of the judicial system, saving time and financial resources of the parties to the dispute. These institutions are little known for Ukraine and, at the same time, promising.

Nowadays, the law is being transformed as a regulator of relations. The idea of strengthe-ning the regulatory role of technologies in the field of streamlining public relations is making much headway in the world. This trend is most pronounced in the area of regulation of private relations. The way of such access to the market as crowdfunding is becoming increasingly widespread. The issuing of the so-called secured tokens is becoming popular for both small businesses and private investors. The trust in new ways of attracting investments is condi-tioned by the applied technology - the use of blockchain as a decentralized transparent data-base management system. Under these conditions, there is such a phenomenon as the democ-ratization of property relations. Every individual receives unlimited opportunities to invest via technologies. Thus, legal scholars all over the world face the question about the role of the law and law in these relations? We believe that we are dealing with such a worldwide trend of regulating public relations as the socialization of the law. Specific examples of issuing tokens in Russia and abroad show the main global trends in the transformation of private law. The platformization of economics leads to the tokenization and democratization of property relations. In this aspect, the aim of lawyers should be to create a comfortable legal environment for the implementation of projects aimed at democratizing property relations in Russia. The socialization of private law is aimed at achieving social jus-tice and is manifested in the creation of mechanisms to protect the rights of the weak party and rules to protect private investors. Globalization requires the study of both Russian and foreign law. To confirm their hypothesis, the authors conducted a detailed analysis of the legislation of Russia, Europe and the United States to identify the norms allowing to see the process of socialization of law in the above field. The generalization of Russian and foreign experience showed that when searching for proper legal regulation, the states elect one of the policies. In some countries, direct regulation of ICOs and related emission relations are being created, in others, it is about the extension of the existing legislation to a new changing tokenization relationship. The European Union countries are seeking to develop common rules to create a regulatory environment to attract investors to the crypto industry and protect them. Asian countries are predominantly developing national legislation in isolation from one another, but most of them are following a unified course to encourage investment in crypto assets while introducing strict rules against fraud on financial markets. The emphasis on the protection of the rights of investors or shareholders, token holders by setting a framework, including private law mechanisms, can be called common to all approaches. This is the aim of private law on the way to social justice.

Global financial crisis in 2008 posted numerous questions about the reasons and triggers. In past three years world’s economic literature has been full of academic articles analysing each reason or trigger and scientific explanations of possible connections. Majority outcome was, that key factor was excessive use of derivatives and synthetic financial products, which were under regulated or not regulated at all. The outcome was that countries with developed financial markets introduced new regulations and controls in the field of derivatives and synthetic financial products. Term “systemic risk” was introduced in global financial market. But will this approach really prevent such global crisis? Submission is divided in three parts. First part deals with the theory of principle based regulation. Principle based regulation was firstly introduced in UK and latter accepted by European Union in the field of capital markets. It was a way, together with the Lamfalussy process, to make EU regulation acceptable for all member states. Instead of detailed prescribed behaviour, legislation texts prescribe only desirable goals. Implementation is left to each state or, even worse, to each supervised subject. So the implementation should depend on the capital market’s development, capital product’s structure, tradition, investment companies’ size etc. From a distant view, principle based legislation could be seen as a great legislation writing’s technique. It could be seen as an effective solution to regulate a fast developing field without need to change the regulation. But is it true? Second part of the submission addresses the legal questions and problems, connected to the principle based regulation starting with the validity of regulations. Broad definitions in Market in financial instruments Directive (MiFID), introduced for fast adaptation to new financial products and instruments, are now turning into dinosaurs. Contrary to US’s fast action, European Union is still discussing whether spot forex trade is financial instrument or not. On the other hand, broad and unclear definitions, represents a friendly environment for new casino’s financial products. Even recognised financial instruments (like derivatives and synthetic financial instruments) are recognised as gambling contracts by national courts within European Union. Problems with legal enforcement of financial contracts are mentioned also in common law’s literature. There are numerous pages describing the economic and financial essence of each derivative or synthetic financial instrument. But the chapters, dealing with the legal aspects, are short and end with a similar advice: “due to small number of case law and the danger, that courts could interpret such contracts as a gambling contract, we strongly advise to settle all disputes outside the court.” In case of numerous defaults unenforceability of contracts could be the poison pill for the trust in capital markets. Accepted solutions could also be a problem for administrative or criminal sanctions. Broad and unclear definitions could violate the basic principle “nullum crimen sine lege praevia.” And least but not last, in modern financial world sins are made in interpretations of details and not of principles. Third part of submission deals with the necessary assumptions for a workable principle based legislation. It starts with basic legal culture and generally accepted rule of law. It deals with the corporate culture, consumer’s organizations, financial markets and capable supervisors. Only when all the actors perform their expected roles, the principle based legislation could work properly.

In Brazil, efforts towards the regulatory acceptance and implementation of innovative methods to replace experimental animal use in various fields began to gather force in 2008, with the approval of Law No. 11,794/2008 (the Arouca Law). This law represented a milestone, as it created the National Council for the Control of Animal Experimentation (CONCEA) to deal with the ethical and legal issues related to the use of laboratory animals. In 2014, CONCEA put together a framework for expanding the implementation of non-animal methodologies for use in research and education. It also promoted the regulatory acceptance in Brazil of 24 test guidelines, including 15 in vitro approaches. It should be emphasised that, in Brazilian legislation, replacement is generally based on the toxicological endpoint and not on the category of product, as tends to be the case in other countries (e.g. cosmetics in the European Union). The resolution-dependent deadlines for the obligatory replacement of in vivo methods with the CONCEA-approved tests are 2019 and 2021. Brazil has advanced considerably towards the replacement of animal experimentation, and in certain aspects, this has been in a highly progressive manner. However, there is still a lot of work to be done, especially considering the current political scenario with reduced investment in research, development and innovation. The chronology of significant events following the approval of the Arouca Law, which have contributed to the promotion of the Three Rs alternatives in Brazil, will be examined.

The purpose of the paper is to substantiate the strategic mechanisms for regulating the European integration development of air transport in Ukraine. Methodology. The study is based on the imperatives of European integration development of air transport of Ukraine, defined in the Association Agreement between the European Union and the European Atomic Energy Community and their member states, on the one part, and Ukraine, on the other part. Quantitative research is based on the analysis of the volume and structure of Ukraine’s foreign trade in air transport services, calculation of the export-import coverage ratio, determination of the share of transport and air transport services in aggregate services in total foreign trade, including with the EU. Results of the paper consist in assessing the impact of the external environment on the European integration development of the Ukrainian aviation transport. The conclusion was reached on its turbulence, complexity and contradiction, while the advantageous geographical location and strategic positions of Ukraine in the region were determined as the main favorable factors. The research also singles out the following negative signs of the external environment: declining competitiveness of the Russian-Asian lanes for domestic air carriers, localization of air services in connection with hostilities in the East of Ukraine; restriction of air traffic in the context of preventive measures to combat the spread of coronavirus infection; insufficient material and technical base: lack of funding, outdated technologies, low level of innovation, environmental friendliness, safety, insufficient quality of transport services, limited social benefits; aimed at ratification of the CAA Agreement between Ukraine and the EU, as well as the draft Aviation Transport Strategy of Ukraine. The present research also identified such negative effects of COVID-19 on the development of air transport, as: a significant decrease in air passenger transport services and airlines’ revenues, a decrease in the rating of world aviation, termination and bankruptcy of a number of airlines and airports due to air traffic restrictions. It determined the place of air transport services in the system of foreign economic trade in services with the EU countries, and developed measures to increase them. Practical implications consist in the elaboration of the main strategic guidelines for the development of aviation: introduction of a simplified procedure for implementing the provisions of EU legislation into the legislation of Ukraine; ensuring environmental safety and energy saving of civil aviation facilities; innovative renewal of aircraft fleet and reduction of their harmful impact on the environment through the introduction of the latest technologies; settlement of issues relating to the establishment of airport charges for the servicing of aircraft and passengers at Ukrainian airports; development of airport infrastructure; creation of multimodal cargo complexes; approximation of SAAU and European Commission requirements to certification systems in the areas of primary airworthiness, airworthiness maintenance and maintenance of aircraft and its components; expansion of Ukraine’s voluntary participation in the program of compensation and reduction of carbon dioxide emissions from international aviation within the CORSIA program, introduction of administrative procedures for monitoring emissions by operators of civil aircraft on international flights under the MRV standards. Value/originality. The present research substantiates strategic foundations of the institutional transformations of the development of aviation transport in the context of the European integration choice of Ukraine and the transition to monovectorality, elimination of defects of dependence on the trajectory of the preceding traffic and polyvectorality. It also proposes legal, policy, investment and infrastructure integration mechanisms.

Defence Date: 25 June 2010
Examining Board: Professor Marise Cremona, European University Institute; Professor Ernst Ulrich Petersmann, European University Institute; Professor Eileen Denza, University College London; Professor Markus Krajewski, University of Potsdam
PDF of thesis uploaded from the Library digital archive of EUI PhD theses

Defence date: 07 February 2018
Examining Board: Professor Marise Cremona, European University Institute (Supervisor); Professor Joanne Scott, European University Institute; Professor Olivier De Schutter, University of Louvain; Professor Markus Krajewski, University of Erlangen-Nürnberg
This thesis uses the case of the international investment regime to demonstrate how the human rights framework that governs EU external relations can be operationalized in the realm of international economic law making. The first part of the thesis outlines the legal foundations for the EU to become a shaper of the international investment regime. These legal foundations are firstly found in the unique human rights framework consisting of human rights as a general principle and objective, the EU Charter of Fundamental Rights and international human rights law and secondly in the international investment competence of the EU. The second part of the thesis demonstrates the inaccessibility of the current international investment regime for human rights interests and shows that recent EU reforms fail to address the major inequalities of rights protection inherent in the investment regime. This regulatory tilt is however difficult to uphold in light of the normative framework established by the first part. The third part analyses two mechanisms, which were developed in the trade context: Ex-ante human rights impact assessments for EU trade and investment agreements and civil society monitoring bodies of EU trade and sustainable development chapters. In examining these mechanisms, this part explores the question of whether they could work towards mitigating the inequalities of rights protection. The potential of these mechanisms lies in their capacities to ensure a comprehensive assessment of policy impacts as well as to empower traditionally marginalized rights-holders to participate in the making, implementation and contestation of the international investment regime. These two methods – comprehensive assessment of policy impacts and empowerment of rights-holders – are embedded in other EU structural principles and the international human rights discourse and would, so this part argues, enable the EU to discharge its human rights obligations. To seize this potential, substantial reforms and a shift of conceptions are however still necessary. This part also analyses what parameters need to be changed in order to utilize these mechanisms for building sustainable institutions that enable marginalized local communities to inject their interests into the design and implementation of international investment regulations. Next to providing concrete proposals, this thesis therefore also demonstrates in a generalizable manner how the broad constitutional human rights mandate can gain precise shape and be broken down into clear benchmarks to which EU international economic law making can be held accountable to.
Chapter 1 'Human rights as a framework for foreign policies' draws upon an earlier version published as an article 'Human rights law in international investment arbitration' (2016) in the journal 'Asian Journal of WTO and International Health Law and Policy'
Chapter 3 'The European Union's external human rights commitment : what is the legal value of Article 21 TEU?' draws upon an earlier version published as EUI LAW WP 2016/10

This chapter puts an emphasis on the regulation of marketed products, conduct of the issuers and operators, and the distribution of financial instruments. It mentions the basic provision on cross—border investment in the European Union (EU) that is found in Art 63 of the Treaty on the Functioning of the European Union (TFEU), which guarantees the free movement of capital. It also explains the difference of the freedom of movement of capital from all other economic freedoms provided by TFEU. This chapter describes how market participants from non—EU countries benefit from the freedom of movement of capital, which does not need any implementing legislation at member State level. It also discusses how the freedom of capital movement lays down a general prohibition that goes beyond the mere elimination of unequal treatment on grounds of nationality.