The European Commission may launch an infringement procedure against Lithuania because of its cap on forest ownership, the Environment Ministry has said.
Under the current law, passed by the previous parliament, one person is not allowed to purchase more than 1,500 hectares of forest land. That, according to the European Commission, may represent restriction on the free movement of capital, one of the pillars of the European Union.
The Commission has asked for an explanation from Lithuania, it said in a press release on Tuesday.
Deputy Environment Minister Danas Augutis said that “the European Commission is likely to initiate a formal infringement procedure against Lithuania unless the restrictions on the acquisition of forest land set by the Law on Forests is changed”.
Marijus Gailius, an adviser to Environment Minister Simonas Gentvilas, said on Tuesday he did not know whether the ministry would push for the law to be changed.
The current law, in effect since early 2020, prohibits a single person or a group of related people to acquire more than 1,500 hectares of forest land in Lithuania.
Members of the previous parliament said the measure was aimed at preventing the concertation of forest ownership and reducing negative environmental effects of industrial forest harvesting.
Critics say the cap discourages new investments.
President Gitanas Nausėda refused to sign the bill into law, but the parliament overturned his veto.
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