Brussels, December 11, 2025 — The European Commission has opened infringement proceedings against Belgium for failing to comply with EU law in connection with the recognition and enforcement of State-investor arbitration awards linked to Spain’s renewable energy support scheme.
In a letter of formal notice sent to Belgium under case number INFR(2025)2199, the Commission said Belgian authorities improperly recognised arbitration awards ordering Spain to pay compensation to investors following changes to its renewables regime, before the Commission had completed its assessment of the awards under EU state aid rules.
State Aid Concerns
According to the Commission, Spain had formally notified the arbitration awards for review, as required under EU state aid law. By allowing the awards to be recognised with a view to enforcement in Belgium ahead of that review, the Commission said Belgium created an imminent risk that Spain could be compelled to pay compensation in breach of the standstill obligation set out in Article 108(3) of the Treaty on the Functioning of the European Union.
The Commission added that enforcement of the awards would also conflict with its earlier Decision SA.40348 concerning Spain’s renewable energy scheme.
Circumvention of EU Rules
The Commission said the requests for recognition of the awards amounted to an attempt to circumvent EU state aid rules. It argued that Belgium was required, under the principle of sincere cooperation laid down in Article 4(3) of the Treaty on European Union, to prevent such circumvention, particularly in light of the Court of Justice’s case law on intra-EU investment arbitration.
The infringement procedure covers both intra-EU and extra-EU State-investor arbitration awards, reflecting the Commission’s broader position that Member States must ensure EU law takes precedence in enforcement proceedings involving state aid.
Next Steps
Belgium now has two months to submit its observations and address the Commission’s concerns. If the response is deemed unsatisfactory, the Commission may proceed to issue a reasoned opinion, the next formal step in the infringement process.
Source: https://ec.europa.eu/commission/presscorner/detail/en/inf_25_2745
