Recent jurisprudence on land market regulation – The lessons to be learnt Workshop on Farmland Market Regulation 3 June 2019 Dr. Thomas Wiedmann, DG Financial Stability, Financial Services and Capital Markets Union * This presentation represents the views of the author and does not prejudge the official position of the European Commission
„ Usufruct “ • Land speculation • Land fragmentation Case • Acquisition by non-farmers • Abusive purchase practices • Correction of infringements of law ECJ C-235/17 Commission v Hungary (21 May 2019) Joint cases C-52/16 and C-113/16 – SEGRO and Horváth (6 March 2018)
The case 2002 2013 99 years usufruct 5 months
The cancelling of land rights violates the free movement of capital and the right to property
Free movement of capital applies - acquisition and use of land (including lease) • Freedom of investment • No restrictions (except in the public interest) • No discrimination against foreigners
What is discrimination? Not only direct but also indirect forms of discrimination Indirect discrimination: When foreigners are Nationals proportionally more disadvantaged than nationals Foreigners
Privileges for local acquirers? It cannot be assumed that a person outside the owner’s family would buy for purely speculative purposes without any intention of cultivating the land (C-235/17, n 97) 7
Restrictions for legal persons to buy land? It cannot be inferred from the mere fact that a legal person acquires land rights that the acquisition constitutes an abuse (C-235/17, n 119)
How to combat abusive purchase practices? No general presumption of abusive practices Case-by case assessment Where there is fraudulent conduct, the sanctions need to be proportionate
Restrictions violating the right to property? Right to property applies next to free movement of capital Extends to indirect expropriation Implies entitlement to compensation
More information: fismab4@ec.europa.eu 12 October 2017
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