The European Commission has opened infringement procedures against Hungary and Belgium in connection with intra-EU investor-state arbitration. Letters of formal notice have been sent to both Member States.
In relation to Hungary, the Commission’s concerns arise from the conduct of the Hungarian state-controlled company MOL and entities under its control. These companies sought recognition and enforcement of an intra-EU investor-state arbitral award before a court in a third country. In addition, a company controlled by MOL initiated new intra-EU arbitration proceedings against another EU Member State. The Commission considers these actions to be inconsistent with EU law governing intra-EU investor-state dispute settlement.
The infringement procedure against Belgium relates to its recognition of investor-state arbitral awards requiring Spain to pay compensation to investors following changes to its renewable energy support scheme. Spain had requested that the Commission assess the awards under EU state aid rules. Despite this, Belgium recognised the awards with a view to their enforcement before the Commission completed its assessment. According to the Commission, such recognition amounts to an attempt to circumvent EU state aid rules and Belgium should have taken steps to prevent that outcome.
Hungary and Belgium each have two months to respond to the Commission’s letter of formal notice and to address the issues identified. If the responses are deemed unsatisfactory, the Commission may proceed to issue a reasoned opinion as the next stage of the infringement process.
<span class="news-text_medium">Source:</span> European Commission, <a href="https://ec.europa.eu/commission/presscorner/detail/en/inf_25_2745" target="_blank" class="news-text_link">December infringements package: key decisions</a>, 11 December 2025
