Interaction and Confrontation of Indirect Expropriation and Regulation of the Host State

Indirect interference of the host State with the investor's right to property has made it very difficult to decide whether the usual restrictions resulting from government intervention are considered expropriation or not. On the one hand, the exceptions to the right of the State to exercise public interest are expanding and on the other hand, the investor seeks economic benefits and stability. The question is what is the most achievable criterion for establishing a balance between the right of the State and the interests of the investor? The present study, after reviewing and analyzing existing theories and justifying the need to amend investment treaties and then review the domestic legal systems, concluded that, in the perspective of international investment, this is slow but decisively rotating towards a new generation of treaties, with emphasis on the right of States to regulate as an inherent right in the State sovereignty, it also creates an attractive space for investment. Therefore, recognizing the right of regulation as a starting point in any treaty can be a framework for creating bilateral or multilateral investment treaties that has not been very successful so far.