The value of bilateral investment treaty ("BIT")
protection should not be underestimated in today's turbulent
economic times. Uncertainty in the global economy, not just in
"risky" emerging markets, but also within Europe, has
made corporate risk management and contingency planning all the
more important. Whether embarking upon a new investment in the
troubled Eurozone, or seeking to enforce rights in respect of an
earlier investment, BITs ensure that foreign investors receive
certain guarantees. The deepening Eurozone crisis (hot on the heels
of the Arab Spring) is re-focusing attention on investment treaty
coverage. In the case of Greece, to take one example, it remains to
be seen whether aggrieved bondholders have recourse to and will
seek to enforce treaty rights, as they did in the case of Argentina
over the last decade.
