The principle of legislative stability mechanism to achieve legal security in investment contracts

Abstract

The principle of legislative stability is considered as one of the most important guarantees that the State offers to investment contracts, in particular to attract foreign capital, this principle requires freezing the legal text under which the investment was contacted and the investor has submitted to the conditions and bonuses which encourage him to contract, immunity has been granted to the investor vis-à-vis legislative texts which will be issued subsequently in order to offer him protection against changes in legal rules within the State where it is invested,thing that is stipulated in the investment development law 16-09 of 03/08/2016 in its article 22 ""The effects of revisions or repeals relating to this law which may occur in the future do not apply to the investment made under this law, unless the investor expressly requests it" On the foregoing, the principle of legislative stability is an essential element in determining the degree of legal security of investment in a given State, it is necessary to strengthen it, regulate and master it with precision in the law of the investment without needing to cancel it must be in accordance with the principle of renegotiation or compensation in order to preserve the acquired rights of investors and of the country where the investment is made.