International investment policy of the European Union: the evolution of EU competence and contemporary mechanisms of legal regulation

The aim of the work is to examine the evolution of the European Union’s competence in the field of international investment policy and to identify the contemporary legal mechanisms governing investment relations within the EU external legal framework. Particular attention is paid to the transformation of the distribution of powers between the European Union and its member states following the entry into force of the Treaty of Lisbon, as well as to the development of a new approach to investment protection that combines effective guarantees for foreign investors with the preservation of the State’s right to regulate in the public interest. The methodological basis of the study comprises a combination of general scientific and special legal methods, including comparative legal, formal legal, historical legal, systematic and structural analysis. The research is based on the provisions of the Treaty on the Functioning of the European Union, the regulatory framework governing the EU investment policy, the case law of the Court of Justice of the European Union, and contemporary scholarly literature devoted to the evolution of international investment law and the external competence of the European Union. Results. The study demonstrates that the Treaty of Lisbon fundamentally transformed the legal foundations of the EU international investment policy by conferring exclusive competence on the Union with regard to foreign direct investment. It is established that the current model of EU investment regulation differs substantially from the traditional bilateral investment treaty practice of member states through more precise investment protection standards, enhanced recognition of the State’s regulatory autonomy, and the introduction of a permanent investment dispute settlement mechanism. Particular attention is devoted to the influence of the Court of Justice of the European Union on the development of the EU investment regime and to the legal consequences of the Achmea, Komstroy judgments and Opinion 1/17. Conclusions. It is concluded that the European Union has developed a distinct model of international investment regulation that seeks to reconcile investment protection with public policy objectives, legal certainty and sustainable development. The evolution of the EU investment policy demonstrates a gradual transition from fragmented bilateral regulation towards a coherent supranational legal framework, which may serve as an important reference point for further development of Ukraine’s investment legislation in the context of European integration.