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Article 272 of the Treaty on the Functioning of the European Union (TFEU) provides an arbitration clause and allows for the Court of Justice of the European Union (CJEU) to adjudicate on both private law and public law disputes between the EU and third parties with which the former has entered into contractual relations. Use of the arbitration clause is extensive given the range of contractual relations for an entity of the Union’s complexity. The arbitration clause is a short provision of the TFEU which has given rise to an increasing number of cases brought to the EU courts. As a matter of EU procedural law, the relevant case law is quite developed but yet underexplored. Its nuances raise questions about the extent of the Court’s powers of judicial review, which in turn demonstrates the extent of judicial protection in the EU. This article delves into, and aims to better elucidate the arbitration clause in order to better understand its features, scope, and application in the EU’s contractual relations, and analyse its contemporary significance.
