From Brussels to Baku: Charles Michel sees arbitration as the currency of investor confidence

In an exclusive interview with AnewZ during Azerbaijan Arbitration Days 2025, President Emeritus of the European Council Charles Michel said international arbitration can strengthen investor confidence, build peace, and turn Baku into a trusted bridge between Europe and Asia.

Arbitration as a foundation for global confidence
The 2025 edition of Azerbaijan Arbitration Days brought together global legal experts, investors, and policymakers to discuss the growing role of arbitration in an era of shifting geopolitics. Among the most prominent voices was Charles Michel, President Emeritus of the European Council and former prime minister of Belgium. Sitting down with AnewZ, Michel spoke with conviction about the importance of transparent legal frameworks and dispute resolution mechanisms in today’s interconnected world.

“I’m absolutely convinced that arbitration mechanisms are fundamental, especially in the current geopolitical context,” Michel said. “It’s very important to strengthen more initiatives for more trust and more confidence at the international level. International arbitration is a great way to resolve disputes, to show respect, transparency, and effectiveness.”

He explained that reliable arbitration is not merely a procedural tool but a strategic necessity for maintaining global stability. “It’s a very powerful tool for more political and geopolitical stability because it means if we use this tool, we will reinforce global confidence,” he told AnewZ. For Michel, the ability to resolve disputes fairly and efficiently lies at the heart of a stable investment climate and a predictable international order.

Baku’s growing importance between Europe and Asia
As the conversation turned to Azerbaijan’s position in the global economy, Michel described Baku as a rising centre of connectivity, poised to play a pivotal role in bridging Europe and Asia. “Azerbaijan, but more broadly the Caucasus and Central Asia, are very important regions in terms of investments, infrastructure, and connectivity,” he said.

He acknowledged the region’s significant potential—and the challenges that accompany it. Strengthening regional cooperation, he noted, requires not only physical infrastructure but also legal and institutional trust. “It’s very consistent to integrate today this Baku International Centre and, in parallel, to work actively to develop more cooperation in the region, to mobilise the private sector as an important player for more growth and prosperity,” he explained.

Michel reflected on his past experience as a European leader working closely with partners in the South Caucasus. “In the future, we need bolder partnerships between the EU and the countries in that region,” he said. “I’ve tried in my previous capacity to play a positive role and to be a bridge between those countries, including Azerbaijan, and the European Union. I’m confident because in recent months we have observed a lot of progress.”

Arbitration in the age of green transition
Michel also discussed a growing trend in international law—the rise of disputes linked to the clean energy and green transition sectors. He described this as an inevitable outcome of expanding global investment. “If there are more economic projects, if there are more investments, of course there are more disputes,” he said.

What matters, he added, is how those disputes are handled. “It’s possible to offer tools and mechanisms to resolve those disputes in a moderate, reasonable, and rational way—making sure that those disputes do not escalate into political, diplomatic, or economic crises.” In his view, arbitration plays a stabilising role in the new energy economy, giving investors confidence that their capital will be protected.

He stressed that successful arbitration requires respect for both national and international institutions. “It’s very important that those tools are there to reassure investors and make clear that if they believe in a country or a project, any dispute that appears can be settled in a fair way,” Michel told AnewZ.

Building a trusted arbitration hub in Baku
Turning to Azerbaijan’s own legal ambitions, Michel praised the establishment of the Baku Arbitration Centre as an important milestone in the country’s institutional development. “There are vast opportunities to develop this Baku Arbitration Centre,” he said. “What is very important is the support and the assistance by the statutes and by the judicial institutions, because we need a consistent approach.”

He explained that the strength of any arbitration centre lies in its credibility, which depends on close cooperation between international arbitration mechanisms and national courts. “There is a space and a natural role for international arbitration on the one hand, but there is also a major role played by the national courts,” he said. “This interaction will be a very important factor to make sure there will be trust in international arbitration through this Baku International Arbitration Centre.”

Michel added that the Centre’s success would encourage more regional investment. “I hope that other countries in the region and private operators from beyond will trust this centre. It will be an additional argument to invest in the Caucasus, in Azerbaijan, and in Central Asia.”

A bridge of trust for the region
Throughout the conversation, Michel returned to the idea that trust is the true currency of both law and diplomacy. He said that arbitration serves as a bridge between different legal traditions and political systems by relying on consent and fairness. “Two parties, even if they have a dispute, consent and agree on how it can be resolved. They can choose arbitrators with relevant expertise, decide on procedures, and that’s a very powerful signal of trust,” he explained.

Michel described arbitration as a “safe and serene space” that operates alongside national jurisdictions rather than in opposition to them. “International arbitration needs the assistance and a certain form of support of the national jurisdictions to be effective,” he said.

Toward sustainable peace and cooperation
Reflecting on his past role in mediating between Azerbaijan and Armenia, Michel spoke candidly about the challenges of building peace in the South Caucasus. “I had the occasion to work closely with President Ilham Aliyev and Prime Minister Nikol Pashinyan. We tried to be innovative and helpful in making proposals to support the peace process,” he recalled.

He said the current progress gives reason for optimism. “I’m observing that progress is achieved,” he said. “My wish is that, in the months to come, more efforts will be done so that this peace process will be a sustainable framework.” Michel emphasised that peace and legal cooperation are interconnected: regional stability, he said, cannot be achieved without mechanisms of trust that encourage dialogue and investment.

Confidence through credible institutions
In closing, Charles Michel told AnewZ that Baku now stands at a historic crossroads—literally and institutionally. With credible arbitration, he said, Azerbaijan can position itself not only as a transport and energy hub but as a centre of trust and legal excellence. “If investors believe that disputes can be settled fairly, they will invest with confidence,” he said. “Baku has the opportunity to become a symbol of trust, cooperation, and prosperity across the Caucasus and Central Asia—where transparency, fairness, and connectivity come together to build a more stable future.”

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