Verheugen supports applicants’ right to delay sale of land to wealthy West

Date: 05/04/01

By Simon Taylor

Enlargement Commissioner Günter Verheugen has admitted for the first time that countries bidding to join the EU should have the right to stop foreigners from buying farmland and holiday homes for years after they join the Union.

Speaking at a Friends of Europe meeting in Brussels this week, Verheugen said that the candidate countries were entitled to impose delays on the purchase of farmland to prevent property being snapped up by wealthy west Europeans.

"Transitional arrangements for arable land and forestry land are entirely justified," Verheugen stated.

The Commissioner said he understood sensitivities about the issue, adding that Poles in particular were worried about Germans purchasing property in their country. Verheugen said that it was also reasonable for applicant countries to ban foreigners from buying land for holiday homes.

But he stressed that there should be no restrictions on purchasing property for investment. "These countries will need investment because they do not have sufficient capital stock of their own," he argued.

The Commissioner did not put a precise figure on what length of transition periods might be accepted by EU governments, but suggested that applicants should scale back their demands, which range from 10 to 18 years. "My advice is to negotiate on agricultural land, forestry and real estate for secondary residence but not for investment," he said.

Poland has asked for an 18-year delay before removing restrictions on farmland purchases. The Czech Republic and Hungary have requested 5-10 year transition periods.

When Austria and Sweden joined the EU in 1995 they were also allowed to delay land purchases while Denmark benefited from similar restrictions after it became a member in 1973.

Verheugen's flexibility over the land issue is being seen as an attempt by the EU to offer concessions to applicant countries in return for a tough line over the rights of their citizens to work in other EU states after enlargement.

In two weeks, the Commission is expected to call for a delay of at least three years before lifting restrictions on citizens from candidate states working in the EU.

The Commissioner stressed that he favoured an early review clause. If it showed the problem of labour migration was less than feared then restrictions could be eased.

He pointed out that whatever EU governments agreed on free movement, member states would have the right to open their labour markets or introduce quotas to control labour flows.

This flexible approach is seen as a way of overcoming public concerns in Germany about Polish workers flooding the market and driving down wages, while allowing other countries the option of selective immigration to meet labour shortages.

Berlin has called for a seven-year delay before granting full labour mobility.

Enlargement Commissioner Günter Verheugen has admitted for the first time that countries bidding to join the EU should have the right to stop foreigners from buying farmland and holiday homes for years after they join the Union.