Recent jurisprudence on land market regulation The lessons to be - PowerPoint PPT Presentation

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