The government of Austria hasn’t yet adopted a common policy regarding protection of foreign investments. With that being said, it is steadfastly committed to resolving investment disputes in the Republic of Austria through BITs.
Being a signatory to TFEU, Austria is required to observe EU regulations, including those related to resolving disputes. If a respective EU regulator finds that certain provisions of a contract constitute a grave impediment to signing bilateral investment contracts, it may declare a deal null & void. The EU Commission may also initiate proceedings on the violation of intra-European BITs. To avoid having to transfer such cases to court, parties can resort to resolving investment disputes through arbitration in the Republic of Austria.
The Declaration on Protection of Investments in the EU, to which Austria is also a signatory, envisages that:
- arbitration-related clauses in BITs signed between member states contradict EU legislation and may, therefore, not be applied
- arbitration-related clauses don’t entail consequences, which includes provisions for long-term investment protection
Registering an FDI Fund in Australia
Jointly with the EU Ministry for Integration & Foreign Affairs, Austria’s Ministry for Economic & Digital Affairs support programs aimed at promoting foreign investment in the Republic of Austria.
The EU Ministry for Integration & Foreign Affairs & Austrian diplomatic missions continue to work toward further protection of investments through ensuring compliance with existing BITs.
To acquire assets of Austrian companies, non-EU citizens & legal entities are required to obtain permission for purchasing a stake in an Austrian company. In particular, this applies to industries which have particular significance for the Republic of Austria.
BITs in Austria
Settlement of a dispute regarding an investment agreement in Austria can take place either in a local court or at the ICSID.
Under BITs concluded in Austria, resolving an investment dispute in Austria can be done through UNCITRAL or ICSID arbitration.
Enforcing Domestic and Foreign Arbitral Awards in the Republic of Austria
Austrian legislation draws a clear distinction between domestic arbitral awards & foreign ones.
Awards issued domestically get enforced immediately, while decisions rendered by foreign arbitrations require official recognition before they’re executed domestically. An exception is made when these decisions must be enforced without a separate statement and through resorting to applicable international agreements.
Resolving investment disputes through arbitration in the Republic of Austria requires making sure that it falls under internal or external arbitration. Looking for help with resolving an investment dispute in Austria? Contact IQ Decision UK and sign up for an individual consultation on the regulation and protection of foreign investment in Austria.