Brussels, 27/05/2016 (Agence Europe) - On Thursday 26 May, the European Commission formally requested Bulgaria, Hungary, Latvia, Lithuania and Slovakia to amend their legislation on the acquisition of agricultural land on the grounds that it violates EU law.
These new national rules, adopted in 2014 after a transition period negotiated at the time of the accession of these five countries, are of concern to the Commission since, it says, they contain provisions that restrict the free movement of capital and freedom of establishment.
In Bulgaria and Slovakia, for example, purchasers of agricultural land must be long-term residents in the country, which discriminates against other EU nationals. Hungary has a very restrictive system which imposes a complete ban on the acquisition of land by legal entities and an obligation on the buyer to farm the land himself. These provisions are likely to discourage cross-border investment. While some of the restrictions may be pursuing justifiable objectives as they aim to combat speculative purchases, or serve planning purposes and rural policy objectives, they must, in order to be lawful, be proportionate and cannot be discriminatory towards other EU citizens.
The Commission's request takes the form of a reasoned opinion. If the five countries fail to bring their national legislation into line with EU law within two months, the Commission may decide to refer these Member States to the Court of Justice of the EU. (Original version in French by Maëlle Didion)