The General Affairs Council meeting ended with an agreement on the draft regulation on bilateral investment treaties with third countries. The agreed text will be sent to the Parliament to be adopted it at second reading. Thanks to the new draft regulation, the bilateral investment treaties (BITs) will be negotiated by the Commission.

Ministers reached an agreement for transitional rules on bilateral investment treaties with third countries. The agreement comes following a deal reached with the European Parliament on 29 May. The European Parliament voted at first reading on the proposal in May 2011. It is expected that the Parliament will adopt it at second reading without further amendment. With this draft regulation, the European Commission will negotiate the bilateral investment treaties (BITs).

The main objectives of this proposal are to ensure legal certainty to the fullest possible extent, together with maximum protection for EU investors, and to maintain the EU as a preferred destination for foreign direct investment. In addition, it will give form to an EU competence for foreign direct investment, introduced by article 207 of the Treaty of Lisbon as part of the EU's common commercial policy.

Based on the EU's new exclusive competence in this field, beyond the scope of the regulation, an EU investment policy will gradually be developed.