Basic Principles of Legal Regulation of Investment Activity in the EU

Problem setting. In the globalized world the national economic development depends on the national legislation competitiveness concerning with the creation of effective mechanisms to ensure, on the one hand, the free movement of capital, creation of favorable investment climate, on the other hand, the effective mechanisms of national interests’ protection. Analysis of recent researches and publications. The legal regulation of international investment activities and the various aspects of European integration have been studied by such local and foreign scientists as D. V. Zadyhaylo, V. K. Mamutov, O. P. Podtserkovnyi, S. V. Glibko, V. A. Ustymenko, V. S. Shcherbina, O. M. Vinnyk, L. M. Entin, M. P. Lukinskaya and others. Target of research. The purpose of this article is to analyze the sources of legal regulation of investment activities in the European Union, to define the essence of the capital movement freedom, the powers of the EU and the Member States concerning with regulation, constraints, and admission of foreign investment. Article’s main body. Considering the system of European investment law sources, they must be classified into the following components: the founding agreements of the Community (now Union); international agreements of the European Union and the Member States; legal acts of the EU institutions (regulations, directives, decisions); the decisions of the European Union Court and of the Court of First Instance. One of the main factors that contributed to the investment processes activation in postwar Western Europe is the development of the objectives and principles of investment law based on the objectives and principles of international law in general and the creation of the European Economic Community (EEC). The basis for the EU law unification in this field was the Treaty of Rome establishing the European Economic Community (EEC), signed on March 25, 1957, that with the coming into operation of the Lisbon Treaty called the Treaty on the Functioning of the European Union (TFEU). The main objectives of mentioned Agreement determined in the Article 2: to spread within the whole Community a harmonious, balanced and sustainable development of economic activities, a high level of employment and social protection, equality between women and men, stable and inflationary growth, the high level of competitiveness capacity and convergence of economic performances, the high level of protection and improvement of the environment, improving the life quality, economic and social cohesion and solidarity among Member States. Conclusions and prospects for the development. The classification in Directive of 1988 includes the transactions related to the import and export of property. This means that the concept of the capital movement also includes the foreign trade operations. Practice shows that a foreign investment regulation, legal regulation of foreign trade in the industrialized capitalist countries is an important part of the characteristics of the foreign investment regime. Classification that presented in the Council Directive of 1988 is the basis for the development of legislation on foreign investment of European Union countries of 80?90 years.