HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"L 101/124
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 Slovakia
(Text with EEA relevance)
(2011/241/EU)
THE EUROPEAN COMMISSION,
the completion of the abovementioned agricultural
reform by the end of the foreseen transitional period ( 1 ).
Having regard to the Treaty of Accession of the Czech Republic,
Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland,
Slovenia and Slovakia,
(4)
According to data available to Eurostat, agricultural land
prices in Slovakia are lower than the agricultural land
prices in the EU. Complete convergence in agricultural
Having regard to the Act of Accession of the Czech Republic,
land sales prices was neither expected nor seen as a
Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland,
necessary pre-condition for terminating the transitional
Slovenia and Slovakia, and in particular Chapter 3 of Annex
period. Nevertheless, the noticeable differences in agri
XIV thereto,
cultural land prices between Slovakia and the EU-15
are such that they can hinder smooth progress towards
price convergence. The risk of speculative activity on low
Having regard to the request made by Slovakia,
value lands is also important.
Whereas:
(5)
Similarly to the levels of agricultural land prices, the data
(1) The
2003
Act
of
Accession
provides
that
Slovakia
may
from Eurostat show that the gap in per capita GDP in
maintain in force, under the conditions laid down
Purchasing Power Standards in Slovakia and the EU-15
therein, for a 7-year period following the accession,
still persists. Thus, existing agricultural land prices are
expiring on 30 April 2011, prohibitions on the
high relative to the purchasing power in Slovakia.
acquisition of agricultural land by natural and legal
persons from other EU Member States who are neither
established nor registered nor having a branch or an
agency in Slovakia. This is a temporary exception to
(6) According
to
Eurostat,
the
structure
of
land
property
in
the free movement of capital as guaranteed by Articles
Slovakia is characterised by the predominance of small
63 to 66 of the Treaty on the Functioning of the
family farms of less than 2 ha which are mostly not
European Union. This transitional period may only be
market oriented. The consolidation process of these
extended once for a period of up to 3 years.
small farms is very slow and the average exploited agri
cultural area per holding of less than 2 ha increased from
0,5 ha to 0,6 ha between 2001 and 2007. Even though
(2) On
20
January
2011,
Slovakia
requested
to
extend
the
only 4,56 % of the total number of workers works in
transitional period concerning the acquisition of agri
agriculture, almost half of the population lives in rural
cultural land by 3 years.
areas. According to the Slovak authorities many agri
cultural lands which are in private hands are not farmed.
(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)
Consolidation of agricultural land is also impeded by the
single market and the transition to the common agri
unfinished process of restitution of ownership rights due
cultural policy in Slovakia. In particular, it aimed to
to unsettled outstanding claims. Also, more than
meet concerns raised about the possible impact on the
360 000 ha of agricultural private lands are adminis
agricultural sector of liberalising the acquisition of agri
trated by the Slovak Land Fund pending the identification
cultural land due to initial large differences in land prices
of their legal owners. Approximately 130 000 ha of
and income compared with Austria, Belgium, Denmark,
State-owned agricultural land remain under the adminis
Finland, France, Germany, Greece, Ireland, Italy,
tration of the Slovak Land Fund. These lands together
Luxembourg, the Netherlands, Portugal, Spain, Sweden
with those which have uncertain legal situation
and the United Kingdom (hereinafter the EU-15). The
represent almost one quarter of the total area of agri
transitional period was also designed to ease the
cultural lands in the Slovak Republic. The lack of clarity
process of restitution and privatisation of agricultural
on property rights inevitably hinders land transactions
land. In its Report of 16 July 2008 on the Review of
and consolidation of agricultural estates. Land fragmen
the transitional measures for the acquisition of agri
tation, in turn, further contributes to lower competi
cultural real estate set out in the 2003 Accession
tiveness and leads to less market-oriented farms.
Treaty (hereinafter the ‘Mid-Term Review’), the
Commission has already emphasised the importance of
( 1 ) COM(2008) 461 final, 16 July 2008.

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EN
15.4.2011 Official
Journal
of
the
European
Union L
101/125
(8)
Against this background, it may be anticipated, as do the
foreign ownership during the transitional period would
Slovak authorities, that the lifting of the restrictions on
also contribute to preparing the market for full liberali
1 May 2011 would exert pressure on the land prices in
sation.
Slovakia. Therefore, a threat of serious disturbances on
the Slovak agricultural land market upon the expiry of
the transitional period exists.
(12) For
the
purpose
of
legal
certainty
and
in
order
to
avoid
a

legal vacuum in the national legal system of Slovakia
after the expiry of the current transitional period, this
Decision should enter into force on the day of its publi
(9) An
extension
of
3
years
to
the
transitional
period
cation in the Official Journal of the European Union,
referred to in Chapter 3 of Annex XIV to the 2003
Act of Accession should therefore be granted.
HAS ADOPTED THIS DECISION:
(10) In
order
to
fully
prepare
the
market
for
liberalisation,
it
Article 1
continues to be of utmost importance, even amid adverse
The transitional period concerning the acquisition of agricultural
economic circumstances, to foster the improvement of
land in Slovakia referred to in Chapter 3 of Annex XIV to the
factors such as credit and insurance facilities for
2003 Act of Accession shall be extended until 30 April 2014.
farmers, and the completion of the agricultural reform
during the transitional period, as already emphasised in
the Mid-Term Review.
Article 2
This Decision shall enter into force on the day of its publication
in the Official Journal of the European Union.
(11) Since an open single market has always been at the heart
of European prosperity, an increased inflow of foreign
capital would also bring along potential benefits for the
agricultural market in Slovakia. As emphasised in the
Done at Brussels, 14 April 2011.
Mid-Term Review of 2008, foreign investment in the
agricultural sector would also have important long-term
For the Commission
effects on the provision of capital and know-how, on the
functioning of land markets and on agricultural produc
The President
tivity. The progressive loosening of the restrictions on
José Manuel BARROSO

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