IDEAS home Printed from https://ideas.repec.org/a/cog/poango/v10y2022i3p110-120.html

Embedded Neoliberalism and the Legitimacy of the Post-Lisbon European Union Investment Policy

Author

Listed:
  • Bart-Jaap Verbeek

    (Centre for Research on Multinational Corporations (SOMO), The Netherlands / Department of Political Science, Radboud University, The Netherlands)

Abstract

Much has been written about the ongoing legitimacy crisis of the global investment treaty regime and the system of investor-to-state dispute settlement (ISDS). In the European Union (EU), the proposed inclusion of investment protection provisions and ISDS in negotiations on the Comprehensive Economic and Trade Agreement (CETA) with Canada and the Transatlantic Trade and Investment Partnership (TTIP) with the United States triggered unprecedented levels of contestation. This article seeks to explain why EU responses to such contestation, in the form of an investment court system and a multilateral investment court, did not bring about a clear break away from the traditional ISDS model. Drawing on critical political economy perspectives, it regards the EU investment policy following the entry into force of the Treaty of Lisbon as deeply embedded in a broader neoliberal project mediated by material, institutional, and ideological configurations. Several factors have inhibited possibilities for more fundamental changes. The European Commission construed the lack of legitimacy as stemming from ISDS’ procedural features rather than questioning its social purpose. There has been no shift in the underlying social power balance, and no comprehensive counter-project has been proposed. The European Commission enjoys relative autonomy vis-à-vis other parts within the EU institutional ensembles and wider societal interests, allowing it to block more radical solutions. Finally, there were no clear signs of a fundamental departure from the neoliberal path in terms of wider EU economic regulation.

Suggested Citation

  • Bart-Jaap Verbeek, 2022. "Embedded Neoliberalism and the Legitimacy of the Post-Lisbon European Union Investment Policy," Politics and Governance, Cogitatio Press, vol. 10(3), pages 110-120.
    • Handle: RePEc:cog:poango:v10:y:2022:i:3:p:110-120
    DOI: 10.17645/pag.v10i3.5333
    as

    Download full text from publisher

    File URL: https://www.cogitatiopress.com/politicsandgovernance/article/view/5333
    Download Restriction: no
    File URL: https://libkey.io/10.17645/pag.v10i3.5333?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bonnitcha, Jonathan & Skovgaard Poulsen, Lauge N. & Waibel, Michael, 2017. "The Political Economy of the Investment Treaty Regime," OUP Catalogue, Oxford University Press, number 9780198719557.
    2. Sornarajah, M., 2016. "An International Investment Court: panacea or purgatory?," Columbia FDI Perspectives 180, Columbia University, Columbia Center on Sustainable Investment (CCSI).
    3. Thomas Dietz & Marius Dotzauer & Edward S. Cohen, 2019. "The legitimacy crisis of investor-state arbitration and the new EU investment court system," Review of International Political Economy, Taylor & Francis Journals, vol. 26(4), pages 749-772, July.
    4. Ruggie, John Gerard, 1982. "International regimes, transactions, and change: embedded liberalism in the postwar economic order," International Organization, Cambridge University Press, vol. 36(2), pages 379-415, April.
    5. Lisa Diependaele & Ferdi De Ville & Sigrid Sterckx, 2019. "Assessing the Normative Legitimacy of Investment Arbitration: The EU’s Investment Court System," New Political Economy, Taylor & Francis Journals, vol. 24(1), pages 37-61, January.
    6. Dirk De Bièvre & Arlo Poletti, 2020. "Towards Explaining Varying Degrees of Politicization of EU Trade Agreement Negotiations," Politics and Governance, Cogitatio Press, vol. 8(1), pages 243-253.
    7. van Harten, Gus, 2007. "Investment Treaty Arbitration and Public Law," OUP Catalogue, Oxford University Press, number 9780199217892.
    8. Sophie Meunier & Kalypso Nicolaidis, 2019. "The Geopoliticization of European Trade and Investment Policy," Journal of Common Market Studies, Wiley Blackwell, vol. 57(S1), pages 103-113, September.
    9. Dirk De Bièvre & Arlo Poletti, 2020. "Towards Explaining Varying Degrees of Politicization of EU Trade Agreement Negotiations," Politics and Governance, Cogitatio Press, vol. 8(1), pages 243-253.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bart-Jaap Verbeek, 2022. "Embedded Neoliberalism and the Legitimacy of the Post-Lisbon European Union Investment Policy," Politics and Governance, Cogitatio Press, vol. 10(3), pages 110-120.
    2. Nicolás Pose‐Ferraro, 2026. "Between Geopolitics and Political Economy: The European Union–Mercosur Negotiation to Form a Trade Agreement," Journal of Common Market Studies, Wiley Blackwell, vol. 64(1), pages 248-267, January.
    3. Camille Nessel & Elke Verhaeghe, 2021. "‘A Force for Good’: The Narrative Construction of Ethical EU–Vietnam Trade Relations," ULB Institutional Repository 2013/336753, ULB -- Universite Libre de Bruxelles.
    4. Johann Robert Basedow, 2022. "Why de‐judicialize? Explaining state preferences on judicialization in World Trade Organization Dispute Settlement Body and Investor‐to‐State Dispute Settlement reforms," Regulation & Governance, John Wiley & Sons, vol. 16(4), pages 1362-1381, October.
    5. Aukje van Loon, 2020. "The Selective Politicization of Transatlantic Trade Negotiations," Politics and Governance, Cogitatio Press, vol. 8(1), pages 325-335.
    6. Robert Basedow, 2021. "The EU's International Investment Policy ten years on: the Policy‐Making Implications of Unintended Competence Transfers," Journal of Common Market Studies, Wiley Blackwell, vol. 59(3), pages 643-660, May.
    7. Simon Otjes & Harmen van der Veer & Wolfgang Wagner, 2026. "Party‐Political Contestation of European Trade Policy. An Analysis of Roll Call Votes in the European Parliament," Journal of Common Market Studies, Wiley Blackwell, vol. 64(2), pages 559-581, March.
    8. Anke Moerland & Clara Weinhardt, 2020. "Politicisation ‘Reversed’: EU Free Trade Negotiations with West Africa and the Caribbean," Politics and Governance, Cogitatio Press, vol. 8(1), pages 266-276.
    9. Sjorre Couvreur & Jaša Veselinovič, 2026. "An Evermore Geoeconomic European Union? Exploring Critical Perspectives for Future Research," Journal of Common Market Studies, Wiley Blackwell, vol. 64(1), pages 431-448, January.
    10. Andrea C. Bianculli, 2020. "Politicization and Regional Integration in Latin America: Implications for EU–MERCOSUR Negotiations?," Politics and Governance, Cogitatio Press, vol. 8(1), pages 254-265.
    11. Camille Nessel & Elke Verhaeghe, 2022. "‘A Force for Good’: The Narrative Construction of Ethical EU–Vietnam Trade Relations," Journal of Common Market Studies, Wiley Blackwell, vol. 60(3), pages 741-758, May.
    12. Tamayo-Álvarez Rafael, 2020. "The Strategic Use of International Investment Law in Colombia – Textiles: Navigating within the International Regime Complex for Development," The Law and Development Review, De Gruyter, vol. 13(1), pages 31-58, January.
    13. Anna Herranz-Surrallés, 2020. "‘Authority Shifts’ in Global Governance: Intersecting Politicizations and the Reform of Investor–State Arbitration," Politics and Governance, Cogitatio Press, vol. 8(1), pages 336-347.
    14. Dirk De Bièvre & Patricia Garcia-Duran & Leif Johan Eliasson & Oriol Costa, 2020. "Editorial: Politicization of EU Trade Policy Across Time and Space," Politics and Governance, Cogitatio Press, vol. 8(1), pages 239-242.
    15. Gleason, Ted, 2025. "Assessing pathways for pursuing coherence between local implementation of emerging alternative economic approaches and international investment law," Ecological Economics, Elsevier, vol. 232(C).
    16. Sarah Bauerle Danzman & Sophie Meunier, 2023. "Naïve no more: Foreign direct investment screening in the European Union," Global Policy, London School of Economics and Political Science, vol. 14(S3), pages 40-53, July.
    17. Anna Herranz-Surrallés, 2020. "‘Authority Shifts’ in Global Governance: Intersecting Politicizations and the Reform of Investor–State Arbitration," Politics and Governance, Cogitatio Press, vol. 8(1), pages 336-347.
    18. Marine Bardou & Tom Delreux, 2025. "How the European Parliament Chooses Its Battles: Parliamentary Resolutions on the Negotiation of International Agreements," Journal of Common Market Studies, Wiley Blackwell, vol. 63(6), pages 1764-1782, November.
    19. L. Johan Eliasson & Patricia Garcia‐Duran, 2023. "New is old? The EU's Open, Sustainable and Assertive Trade Policy," Global Policy, London School of Economics and Political Science, vol. 14(S3), pages 9-18, July.
    20. Rémi Bachand, 2023. "Class Struggle and International Economic Institutions: The Origins of the GATT and “Embedded Liberalism”," Politics and Governance, Cogitatio Press, vol. 11(1), pages 193-202.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cog:poango:v10:y:2022:i:3:p:110-120. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: António Vieira or IT Department (email available below). General contact details of provider: https://www.cogitatiopress.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.