Agriculture, EU – Baltic States, Legislation, Lithuania, Markets and Companies, Real Estate

These laws, in the EC's opinion, contain several provisions, which, under EU law, may be considered to restrict the free movement of capital and freedom of establishment. Any restriction of these basic Treaty freedoms must be justified and comply with the principles of non-discrimination and proportionality. While member-states are permitted to set their own rules to promote rural development, to keep land in agricultural use and avoid speculative pressure on land prices, this must be done within the limits of EU law.

In the Commission's view, the provisions in question also contain certain restrictions that may leave room for discriminatory treatment of investors from other member-states. These include: a residence requirement in the given country; restrictions on persons without a local residence or previous local business activities; various restrictions on persons lacking professional knowledge, on ceding the use of land or on legal persons, as well as legal uncertainty related to the prior approval of sales contracts.

The EC's requests take the form of a letter of formal notice, the first stage of infringement procedures under Article 258 of the Treaty on the Functioning of the European Union. The member-states concerned have two months to respond.