The European Commission adopted a report on Monday 8 May calling for the transition measures on the acquisition of agricultural land set out in the 2011 Treaty on the accession of Croatia to the European Union to be maintained unchanged.
The 2011 act establishes a seven-year transitional period, until 2020, with the possibility of an extension of three years, during which Croatia may maintain the existing restrictions in its national legislation on the acquisition of agricultural land. This concerns acquisitions by legal and natural persons from other EU member states and the European Economic Area (EEA). Under the terms of the accession treaty, the Commission is obliged to report to the Council in the third year after the accession on the possibility of shortening or terminating the transitional period granted by the treaty ahead of the date set in the treaty.
According to the report, analysis of the present situation in the agricultural sector in Croatia shows that “several factors are still affecting the land market”. These include the poor general economic climate, ownership fragmentation, the relatively low income levels of farmers, unfinished privatisation and restitution of land, and ongoing de-mining activities. The Commission concludes, therefore, that the time limit for the transitional measures provided for in the act of accession should not be shortened.
No total ban. The Commission also calls on Croatia to gradually finalise the preparation of the land market for the full application of free movement of capital once the transitional period comes to an end. Even now, the restrictions in the legal framework on the acquisition of land by foreign natural and legal persons do not amount to a total ban, as legal entities which are owned by EU/EEA nationals are allowed to purchase land, and self-employed EU/EEA farmers are allowed to acquire land if they wish to establish themselves and reside in Croatia. Moreover, the new land law of 2013 introduced the possibility of acquiring land ownership rights by inheritance. The Commission notes, too, that the land leasing market is open to foreign investors who can establish and operate agricultural enterprises in Croatia. Lastly, joining the EU has improved access to capital for local farmers. (Original version in French by Lionel Changeur)