Keywords
Summary

Keywords

1. Free movement of capital — Restrictions on the acquisition of agricultural and forestry plots placed on nationals of Member States of the European Economic Area — Assessment in the light of the Agreement on the European Economic Area — Legal scope identical to that of Community provisions — (EC Treaty, Art. 73b (now Art. 56 EC); EEA Agreement, Art. 40 and Annex XII)

2. Free movement of capital — Restrictions on the acquisition of immovable property — System of prior authorisation for the acquisition of farmland — Whether permissible — Limits — Conditions as to residence and involvement in farming not permissible — (Arts 73b, 73c, 73d, 73f, and 73g of the EC Treaty (now Arts 56 EC, 57 EC, 58 EC, 59 EC and 60 EC))

Summary

1. National rules making transactions relating to agricultural and forestry plots subject to administrative restrictions must, in the case of a transaction between nationals of States party to the Agreement on the European Economic Area (EEA), be assessed in the light of Article 40 of and Annex XII to that Agreement, which are provisions with the same legal scope as Article 73b of the Treaty (now Article 56 EC), which is identical in substance.

It is apparent from those provisions that the rules laid down in them prohibiting restrictions on the movement of capital and discrimination, so far as concerns relations between the States party to the EEA Agreement, irrespective of whether they are members of the Community or members of EFTA, are identical to those under Community law with regard to relations between the Member States. National measures governing the acquisition of agricultural and forestry plots are therefore no more exempt from the abovementioned rules than under Community law.

see paras 28, 32, operative part 1

2. Article 73b of the Treaty (now Article 56 EC) in conjunction with Articles 73c, 73d, 73f and 73g of the Treaty (now Articles 57 EC to 60 EC) do not preclude the acquisition of agricultural land being made subject to the grant of prior authorisation. However, they do preclude such authorisation being refused in every case in which the acquirer does not himself farm the land concerned as part of a holding and on which he is not resident.

see para. 54, operative part 2