Why is the issue of land ownership still of major concern in East Central European (ECE) transitional countries and particularly in Hungary?

Abstract

In recent negotiations related to agriculture in connection with EU accession, the candidate countries asked for and received a period of 7–12 years exemption from EU rules with respect to the free movement of capital for the purpose of purchasing agricultural land. This means that, with some exceptions, foreigners will be prevented from buying land in most new member countries for a transitional period. The negotiating governments of the prospective new Member States claimed that a transitional period would be necessary because land prices are much lower in their countries than in the 15 EU ‘old’ countries. They claimed that without such an exemption, land in their countries would be bought cheaply by people of the ‘old’ EU countries, thus causing land scarcity for domestic farmers. However, statistical data do not support fears about land scarcity at present or in the future. The reasons for ‘keeping away’ foreigners from ‘national land’ are ideological rather than economic. Land continues to play a crucial role in rural-nationalist ideology, which has survived even after the disappearance of its bases, i.e. rural over-population and genuine land scarcity.