Press Release: Internal Market: Commission refers Austria to Court over restrictions on investment in agricultural real estate in Vorarlberg

The European Commission acted on 24 June 2010 to ensure the compliance with the Treaty rules on free movement of capital by referring Austria to the EU's Court of Justice over the acquisition of agricultural real estate in Vorarlberg (Austria). Under rules applied in the region of Vorarlberg, if a non-farmer wants to acquire agricultural land, any farmer may notify his interest to buy the land at the usual local price. No appropriate exceptions to this pre-emption mechanism are applied, making it difficult for non-farmers to invest in the region, even for agricultural purposes. The Commission is concerned that Austria has failed to fulfil its obligations under EU rules on the freedom of establishment and the free movement of capital (Articles 49 and 63 of the Treaty on the Functioning of the European Union - TFEU) by maintaining disproportionate restrictions. The Commission sent a reasoned opinion to Austria in November 2009 asking it to comply with EU law. As no satisfactory reply was received, the Commission has decided to take the case to the Court of Justice of the EU.

• Primary Source