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

• fficial position of the European Commission

„Usufruct“ Case

• Land speculation
• Land fragmentation
• Acquisition by non-farmers
• Abusive purchase practices
• Correction of infringements
• f 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)

2002

99 years usufruct

2013

5 months

The case

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
• proportionally more
• disadvantaged than

nationals

Nationals

Foreigners

7

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

• f cultivating the land (C-235/17, n 97)

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