Taylor Scott International News
22 October 2013 | 02:03 | FOCUS News Agency Home / European Union Sofia. Protesters in front of the Agriculture Ministry insisted for an extension of the ban on the acquisition of farmland by foreigners. This is also the “solution” to the problem that Bulgarian politicians came up with, even though it is as impossible as inefficient, the Sega daily comments. Other Eastern European countries agreed such moratoriums at their EU accession. The motive was that the price of agricultural land was very low there and foreigners could easily “snatch it from under the nose” of the needy local citizens. However, prices in Bulgaria are still low. The average price per decare is €440 in Bulgaria compared to €1,430 in Italy and €2,930 in the Netherlands. Weeks prior to the end of the moratorium the Agriculture Ministry sent a letter to the European Commission (EC) asking for an extension. The EC promised to answer within a month. Its response is, however, clear in advance – according to Bulgaria’s EU membership treaty it must lift the ban in 2014. The EC will also probably remind Bulgaria of the report it sent in 2010 containing recommendations for safeguard measures it could undertake. They are no different from what other EU member states did. For example, Spain has limited foreign stakes in the land belonging to one village to 15%. Greece introduced restrictions for the acquisition of farmland in border regions, Sega daily comments further. The Sega daily also reported that the EU has turned down a request by Romania to extend the ban on the sale of farmland to foreigners, quoting ITAR-TASS. The moratorium on the sale of farmland to foreign physical persons is virtually formal, as they can always register as juridical persons, the Duma daily comments. According to most experts the expiration of the ban will not produce a considerable effect as since Bulgaria’s EU accession foreigners received the right to buy land under the condition of setting up a joint-stock company with capital of BGN 2. Foreign investments in agricultural land in Bulgaria amount to below 0.2% for the past seven years since its EU entry, according to data from the latest report of the World Bank, as cited by the Institute for Market Economics. Experts note the reason behind the scepticism of foreign investors is the confusion with land management in Bulgaria. Taylor Scott International
Taylor Scott International, Taylor Scott
