Real Property Acquisition Case

• Jurisdiction: Grecia
• Date: 01 January 1990
• Court: Court of Appeal of Dodecanese (Greece)

Greece, Court of Appeal of the Dodecanese.

(Nikolopoulos, President and Rapporteur)

Real Property Acquisition Case

Treaties Effect in municipal law EEC Treaty, 1957 Status of EEC Treaty provisions under municipal law Articles 48, 52 and 59 of Treaty Direct effect Treaty concerning Accession of Greece to European Communities, 1979 Application of Community law with immediate effect from date of accession Derogations for transitional period

Relationship of international law and municipal law Treaties Incorporation of provisions into municipal legal order Greek Constitution, Article 28

International organizations European Economic Community Institutions Court of Justice Powers Binding nature of rulings by Court of Justice for municipal courts

Aliens Right to non-discrimination Scope of protection under EEC Treaty Freedom of establishment Whether including right to acquire land in other Community Member States Whether acquisition must be associated with exercise of activity or provision of services in Member State concerned The law of Greece

Summary: The facts:Under Greek law foreign nationals were prohibited from acquiring property in areas close to the Greek frontier. In 1963 the original plaintiff, a German national, concluded a contract of mandate with the original defendant, a Greek national, for him to take care of his affairs without consideration (Article 713 of the Civil Code), and in particular to buy in his own name, but on the plaintiff's authority and with his money, a piece of land in the district of Rhodes. It was agreed that as soon as the legislative restrictions upon the purchase by aliens of land in frontier areas were lifted, either as a result of a general regulation or by special permission, the property would be transferred to the plaintiff. Arguing that such restrictions had been eliminated by Greece's accession to the European Communities, the plaintiff applied for a declaration of this change of circumstances and for an order requiring the defendant to transfer the property to him immediately, or as soon as all relevant restrictions were lifted. The court of first instance allowed the application and the defendant appealed.

Held:The appeal was allowed and the decision of the court of first instance was quashed.

(1) In accordance with the judgment of the Court of Justice of the European Communities of 30 May 1989,1 discrimination towards aliens who were nationals of other Member States of the European Economic Community was a violation of Articles 7, 48, 52 and 59 of the EEC Treaty, which formed part of municipal law on the basis of the Act of Accession of Greece to the European Communities of 1979, as ratified by Greece. Pursuant to Article 28 of the Constitution,2 the Treaty took precedence over municipal law.

(2) The general prohibition of discrimination in Article 7 was conditional upon other treaty rules providing for its application to specific spheres. Article 52 (freedom of establishment) and Article 59 (freedom to provide services) gave substance to the prohibition of discrimination in those spheres to which they applied, and had become directly effective for Greece from the date of accession since no transitional period was laid down for their application. Article 48 (freedom of movement of...