Press Release: Free movement of capital: Commission requests Austria to modify provisions on the acquisition of agricultural real estate in the Land Transfer Law of Vorarlberg

The European Commission sent Austria a formal request with regard to the Vorarlberg Land Transfer Law, under which a non-farmer cannot acquire agricultural land if a farmer intends to acquire that land instead. Moreover, future agricultural use by a farmer within an agricultural undertaking has to be ensured. The infringement procedure was initiated by a letter of formal notice in December 2008 following a complaint. Having analysed the Austrian government's reply, the Commission considered that the restrictions still represent some unjustified obstacles to EC Treaty rules on free movement of capital. The Commission's request took the form of a 'reasoned opinion', the second stage of infringement procedures under Article 226 of the EC Treaty. If there is no satisfactory reply within two months, the Commission may decide to refer the case to the European Court of Justice.