Opinion of the Advocate General — ECLI:EU:C:2006:635
Date: 2006-10-03
Language of the case: Danish
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Free movement of capital
Procedure: Reference for a preliminary ruling
Origin: Denmark

Summary of the Judgment Free movement of capital – Restrictions on the acquisition of agricultural property (Art. 56 EC) Article 56 EC precludes national legislation from laying down as a condition for acquiring an agricultural property the requirement that the acquirer take up his fixed residence on that property for eight years, irrespective of particular circumstances relating to individual characteristics of the agricultural land concerned. It can be accepted that national legislation containing such a requirement, which seeks to avoid the acquisition of agricultural land for purely speculative reasons, and which is thus likely to facilitate the preferential appropriation of that land by persons wishing to farm it does pursue a public interest objective in a Member State in which agricultural land is a limited natural resource. However, the residence requirement constitutes a measure which goes beyond what is necessary to attain such an objective. First, it turns out to be particularly restrictive in that it restricts not only the free movement of capital but also the right of the acquirer to choose his place of residence freely, guaranteed by the European Convention on Human Rights and protected in the Community legal order, thereby adversely affecting a fundamental right. Nor is there anything to indicate that other measures less restrictive than that requirement could not have have been adopted in order to attain the objective pursued. Such a requirement, a fortiori when accompanied by a condition that residence be maintained for several years, goes beyond what could be regarded as necessary. (see paras 33-37, 41-42, 50, operative part 1)