Review of the transitional measures for the acquisition of agricultural real estate set out in the 2011 Treaty on the accession of Croatia to the EU

The Commission is presenting this report to the Council in accordance with the 2011 Act concerning the conditions of accession of the Republic of Croatia. This Act establishes a transitional period of seven years until 2020, with the possibility of an extension of three years, during which Croatia may maintain the existing restrictions in its national legislation on the acquisition of agricultural land. This concerns acquisitions by legal and natural persons from other Member States of the European Union and the European Economic Area.

Under the Accession Treaty, the Commission is obliged to report to the Council in the third year following the accession on the possibility to shorten or terminate the transitional period granted by the Accession Treaty ahead of the date set in the Treaty.

The transitional period during which Croatia may maintain the restrictions that existed at the time of its accession was granted to allow the newly-acceding Member State to tackle the imperfections of the agricultural land market and the agricultural sector and make it more competitive in the internal market.

This report aims to take stock of the situation of the agricultural land market and to review the need for such transitional measures. Based on the overall situation of the agricultural sector in Croatia three years after its accession to the EU, this report concludes that the transitional period should not be shortened.