Among such principles are the rule of pacta sunt servanda
(agreements must be kept), the prohibition of abuse of rights, the requirement to act in good faith, the prohibition of expropriation without compensation, the prohibition of discrimination and the protection of incapables (12).
Internationally speaking, what we need to support such a system would appear to be quite limited: in order to support the jurisdictional choices of host states and foreign investors, an international willingness to support the enforcement of arbitration agreements and awards; and in order to support the substance of whatever guarantees investors are offered (as a matter of contract or municipal law), recognition of the principle that host state promises to investors should usually be kept, a concept known as pacta sunt servanda
Spinelli has written: "Certo e che questa norma rappresenta una applicazione canonistica o, se si vuole, una 'canonizzazione', del principio pacta sunt servanda
, che costituisce norma fondamentale nell'ordinamento internazionale, e racchiude in se l'essenza stessa del diritto dei trattati.
Part IV presents the issue in the context of three traditional doctrines concerned with international law: pacta sunt servanda
, (45) the Charming Betsy canon, (46) and the last-in-time rule.
The signing of the treaty in question must be compatible with pacta sunt servanda
See LOUIS HENKIN, CONSTITUTIONALISM, DEMOCRACY, AND FOREIGN AFFAIRS 62 (1990) (describing pacta sunt servanda
as "the most important principle of international law").
But Mr Rehn said: "The long European legal and historical tradition is, in Latin - pacta sunt servanda
- respect your commitments and obligations.
This is also a requirement of the principle of pacta sunt servanda
," he said.
Next, Block tries to show the supposed untenability of my reliance on the principle of pacta sunt servanda
on the grounds that "at the time of intercourse (.
Although pacta sunt servanda
("pacts must be respected") is a fundamental legal, economic, and ethical principle, all legal systems recognize circumstances where contractual rights can no longer be enforced, or indeed cease to exist.
Beneath this limit of unforeseeable fundamental change in the contractual basis, parties to international investment contracts can overcome the pacta sunt servanda
principle only if the contract contains a renegotiation clause.
In my opinion, half of this burden lies on the shoulders of the EU, which must keep its promises to remove the isolation on the northern side, as it is a necessity of pacta sunt servanda
, a principle referring to the fact that the non-fulfillment of respective obligations is a breach of the pact.