1. Access to farmland and free movement of capital
Exchange of views on access and use of farmland
Tuesday, 7 February 2017
Altieri Spinelli Building (ASP)
Dr. Thomas Wiedmann DG Financial Stability, Financial Services and Capital Market Union
*This presentation represents the views of the author and does not prejudge the official position of the European Commission

2. Rising interest in farmland
Long-term developments in the land value/ha (average in EUR)
Source: DG AGRI/Farm Accountancy Data Network (FADN)

3. The Commission's legal action against land market restrictions
Need to regulate land markets
Challenging laws which are disproportionate and discriminatory against EU nationals
The Internal Market allows restrictions which are necessary to protect public interests

4. Acquisition of farmland and EU law
- Free movement of capital applies (Article 63 TFEU)
Freedom of investment
No restrictions (except in the public interest)
No discrimination against foreigners

5. Agricultural policy objectives that may justify restrictions:
to prevent land speculation
to preserve traditional forms of farming
to encourage a reasonable use of the land
Restrictions must not be disproportionate and not discriminatory
Comprehensive jurisprudence on restrictions to the acquisition of agricultural land. ECJ had ample opportunity to set out its position on policy objectives that may justify restrictions to FMC.
Proportionality test:
measure has to be suitable to achieve the objective
there is no less restrictive option which can equally achieve the desired objective

6. Regulatory approaches under scrutiny: Residence requirement
Farmland can only be acquired by those who have a residence in the country or in the municipality

7. Regulatory approaches under scrutiny: Qualification requirement
Only qualified farmers may acquire land

8. Regulatory approaches under scrutiny: Self-farming obligation
Only those can acquire land who work it themselves

9. Less restrictive and not discriminatory approaches
pre-emption rights for farmers
price regulations
speculation tax

10. Conclusions Need to regulate land markets
Foreign investments enjoy freedom of investment and must not be restricted in a disproportionate manner
The Internal Market allows restrictions necessary to protect public interests

11. Thank you
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