HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"L 101/122
EN
Official Journal of the European Union
15.4.2011
COMMISSION DECISION
of 14 April 2011
extending the transitional period concerning the acquisition of agricultural land in Lithuania
(Text with EEA relevance)
(2011/240/EU)
THE EUROPEAN COMMISSION,
Review of the transitional measures for the acquisition of
agricultural real estate set out in the 2003 Accession
Treaty (hereinafter the ‘Mid-Term Review of 2008’), the
Having regard to the Treaty of Accession of the Czech Republic,
Commission has already emphasised the importance of
Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland,
the completion of the abovementioned agricultural
Slovenia and Slovakia,
reform by the end of the foreseen transitional period ( 1 ).
Having regard to the Act of Accession of the Czech Republic,
Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland,
(4) The
land
reform
is
still
ongoing
in
Lithuania.
According
Slovenia and Slovakia, and in particular Chapter 4 of Annex
to data supplied by the Lithuanian authorities, there is a
IX thereto,
total of 429 000 ha of State land for which ownership
rights need to be clarified. At the moment only 77 200
ha of State agricultural land have been privatised and for
351 000 ha of agricultural land, which constitutes
Having regard to the request made by Lithuania,
11,42 % of the total agricultural land in Lithuania, the
ownership rights still remain to be solved.
Whereas:
(5)
In the view of the Lithuanian authorities, the lack of
(1) The
2003
Act
of
Accession
provides
that
Lithuania
may
clarity on property rights together with the unfavourable
maintain in force, under the conditions laid down
structure of the farms inevitably hinders land transactions
therein, for a 7-year period following the accession,
and consolidation of agricultural land. Land fragmen
expiring on 30 April 2011, prohibitions on the
tation, however, leads to lower competitiveness and less
acquisition of agricultural land by natural and legal
market-oriented farms. In this context, data relating to
persons from other EU Member States who are neither
2009 made available by the Lithuanian authorities show
established nor registered nor having a branch or an
that, in that year, farms of a size of up to 5 ha amounted
agency in Lithuania. This is a temporary exception to
to 52,5 % of all farms.
the free movement of capital as guaranteed by Articles
63 to 66 of the Treaty on the Functioning of the
European Union. This transitional period may only be
extended once for a period of up to 3 years.
(6) The
aforementioned
lower
competitiveness
of
the
Lithuanian agricultural sector compared to the agri
cultural sector in EU-15 is compounded by difficulties
(2) On
4
February
2011,
Lithuania
requested
to
extend
the
transitional period concerning the acquisition of agri
in access to financial resources and high interest rates
cultural land by 3 years.
applied to commercial credit lines for the acquisition of

agricultural land (more than 10 % in 2009).
(3)
The main reason for the transitional period was the need
to safeguard the socioeconomic conditions for agri
cultural activities following the introduction of the
(7) Moreover,
the
recent
global
financial
and
economic
crisis
single market and the transition to the common agri
also had a negative impact on Lithuania’s economy and
cultural policy in Lithuania. In particular, it aimed to
in particular on the selling prices of agricultural products.
meet concerns raised about the possible impact on the
According to the data of the Lithuanian Department of
agricultural sector of liberalising the acquisition of agri
Statistics under the Government of the Republic of
cultural land due to initial large differences in land prices
Lithuania, the total index of the purchase prices of the
and income compared with Austria, Belgium, Denmark,
agricultural products in 2009, as compared to 2008, was
Finland, France, Germany, Greece, Ireland, Italy,
77,8. The fall was especially significant in the plant
Luxembourg, the Netherlands, Portugal, Spain, Sweden
growing sector, where the total index of the purchase
and the United Kingdom (hereinafter the EU-15). The
prices of these agricultural products in 2009 compared
transitional period was also designed to ease the
to 2008 was equal to 69,1.
process of restitution and privatisation of agricultural
land to farmers. In its Report of 16 July 2008 on the
( 1 ) COM(2008) 461 final, 16 July 2008.

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EN
15.4.2011 Official
Journal
of
the
European
Union L
101/123
(8)
In the light of the factors mentioned above, the still
(13) Since an open single market has always been at the heart
considerable, although decreasing over time, gap in the
of the European prosperity, an increased inflow of
agricultural income of farmers in Lithuania and of
foreign capital would bring along potential benefits also
farmers in the EU-15 can be explained. According to
for the agricultural market in Lithuania. As emphasised in
Eurostat, in 2009 the level of the farmers’ income in
the Mid-Term Review of 2008, foreign investment in the
Lithuania decreased by 13,6 %, while the average of the
agriculture sector would also have important long-term
income of the EU-27 decreased by 10,7 %.
effects on the provision of capital and know-how, on the
functioning of land markets and on agricultural produc
(9)
Similarly to the levels of agricultural income, the gap in
tivity. The progressive loosening of the restrictions on
the agricultural land sales prices between Lithuania and
foreign ownership during the transitional period would
the other EU Member States also persists. According to
also contribute to preparing the market for full liberali
Eurostat data, the prices of the agricultural land parcels in
sation.
Lithuania remain low in comparison to the other EU
Member States. Complete convergence in agricultural
(14) For
the
purpose
of
legal
certainty
and
in
order
to
avoid
a
land sales prices was neither expected nor seen as a
legal vacuum in the national legal system of Lithuania
necessary pre-condition for terminating the transitional
after the expiry of the current transitional period, this
period. Nevertheless, the noticeable differences in agri
Decision should enter into force on the day of its publi
cultural land sales prices between Lithuania and the
cation in the Official Journal of the European Union,
EU-15 are such that they may hinder smooth progress
towards price convergence.
HAS ADOPTED THIS DECISION:
(10) Against this background, it may be anticipated, as do the
Article 1
Lithuanian authorities, that the lifting of the restrictions
on 1 May 2011 would exert pressure on the land prices
The transitional period concerning the acquisition of agricultural
in Lithuania. Therefore, a threat of serious disturbances
land in Lithuania referred to in Chapter 4 of Annex IX to the
on the Lithuanian agricultural land market upon the
2003 Act of Accession shall be extended until 30 April 2014.
expiry of the transitional period exists.
Article 2
(11) An
extension by 3 years of the transitional period
referred to in Chapter 4 of Annex IX to the Act of
This Decision shall enter into force on the day of its publication
Accession should therefore be granted.
in the Official Journal of the European Union.
(12) In
order
to
fully
prepare
the
market
for
liberalisation,
it
continues to be of utmost importance, even amid adverse
Done at Brussels, 14 April 2011.
economic circumstances, to foster the improvement of
factors such as credit and insurance facilities for
For the Commission
farmers, and the completion of the agricultural structural
reform during the transitional period, as already
The President
emphasised in the Mid-Term Review of 2008.
José Manuel BARROSO

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