Speculative corporate investors are claiming more than 1,7 billion Euros in compensation from Greece, Spain and Cyprus in private international tribunals – for measures implemented to deal with economic crises, a new report released by the Transnational Institute (TNI) and Corporate Europe Observatory (CEO) reveals.
Today the fourth round of negotiations for a transatlantic trade deal between EU and the US starts in Brussels. The report reveals how corporations, backed by lawyers, are already using international investment agreements to scavenge for profits by suing European governments in crisis. The granting of super-rights to corporations would be exacerbated by a Free Trade Agreement between the EU and US.
Profiting from crisis reveals how:
- The public bailout of banks that led to the European debt crisis could be repeated with a second public bailout, this time of speculative investors suing crisis countries.
- Many of the investment lawsuits under way against European crisis countries are being launched by speculative investors. They were not long-term investors but those which invested as the crisis first emerged and were therefore fully aware of the risks.
- The investors involved in lawsuits have profited considerably despite the ‘threat’ to their investments by the crisis countries. It has been a very different story for the citizens of the countries being sued.
- Corporate investors have been supported and encouraged by highly paid investment lawyers who continuously and actively identify litigation possibilities. The corporate lawyers’ marketing has paid off with a boom in cases and healthy profits and income for these elite firms.
We hope this report contributes to the growing opposition and resistance to the EU-US trade deal as well as support campaigns against investment agreements in other regions of the world.
We need your help to bring this issue into the public spotlight. Please share the report widely by:
- linking to the report from your website: http://www.tni.org/profiting-crisis
- forwarding this email to your networks and friends
- Posting on facebook and twitter. If you would like to re-tweet, see today tweets from @transinstitute and @corporateeurope