12003TN05/02

2. FREE MOVEMENT OF CAPITAL

Treaty on European Union;

Treaty establishing the European Community.

1. Notwithstanding the obligations under the Treaties on which the European Union is founded, the Czech Republic may maintain in force for five years from the date of accession the rules laid down in the Foreign Exchange Act No. 219/1995 Sb., as amended, on the acquisition of secondary residences by nationals of the Member States non-resident in the Czech Republic and by companies formed in accordance with the laws of another Member State and being neither established nor having a branch or a representative agency in the territory of the Czech Republic.

2. Notwithstanding the obligations under the Treaties on which the European Union is founded, the Czech Republic may maintain in force for seven years from the date of accession the rules laid down in the Foreign Exchange Act No. 219/1995 Sb. as amended, Act No. 229/1991 Sb. on the arrangement of ownership relations towards land and other agricultural property, and the Act No. 95/1999 Sb. on conditions relating to the transfer of agricultural land and forests from the state ownership to ownership of other entities regarding the acquisition of agricultural land and forests by nationals of the Member States and by companies formed in accordance with the laws of another Member State which are neither established nor registered in the Czech Republic. In no instance may a national of a Member State be treated less favourably in respect of the acquisition of agricultural land and forests than at the date of signature of the Accession Treaty or be treated in a more restrictive way than a national of a third country.

Self-employed farmers who are nationals of another Member State and who wish to establish themselves and reside in the Czech Republic, shall not be subject to the provisions of the preceding subparagraph or to any procedures other than those to which nationals of the Czech Republic are subject.

A general review of these transitional measures shall be held in the third year following the date of accession. To this effect, the Commission shall submit a report to the Council. The Council may, acting unanimously on a proposal from the Commission, decide to shorten or terminate the transitional period indicated in the first subparagraph.

If there is sufficient evidence that, upon expiry of the transitional period, there will be serious disturbances or a threat of serious disturbances on the agricultural land market of the Czech Republic, the Commission, at the request of the Czech Republic, shall decide upon the extension of the transitional period for up to a maximum of three years.

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