Derogations
- Maltese flag. Malta is the only country to receive a permanent derogation in enlargement negotiations. (Photo: EUobserver.com)
Notes
In the enlargement negotiations the EU has only accepted temporary derogations, with the exception of Malta. Malta gained a permanent regulation on the purchase of second homes on the island. Under the terms of its Accession Treaty, Malta will only allow houses to be sold to foreigners who have resided there for five years.Links
See also Denmark.READ MORE
of the principal derogations from the provisions of specific EU Treaty chapters that have been permitted for the various Applicant countries in the Accession Treaty although it binds them to taking over all EU law without modifications.Chapter 1: Free movement of goods:
Cyprus:
until 31 December 2005 concerning the renewal of marketing authorisation for pharmaceuticals
Lithuania:
until 1 January 2007 concerning the renewal of marketing authorisation for pharmaceuticals
Malta:
until 31 December 2006 concerning the renewal of marketing authorisation for pharmaceuticals
Poland:
until 31 December 2008 concerning the renewal of marketing authorisation for pharmaceuticals and until 31 December 2005 concerning the validity of licenses for medical devices
Chapter 2: Freedom of movement of persons:
Valid for all countries except Malta and Cyprus:
Two year period during which national measures of the Member States will be applied to applicant countries. This should come to an end after five years, but can be prolonged for a further two years if serious disturbances of the labour market are expected to occur.
Safeguards may thus be applied by Member States up to the end of the 7th year.
Austria and Germany have the right to apply additional flanking measures.
Malta: Safeguard clause for 7 years.
Chapter 3: Freedom of movement of services:
Cyprus:
Exclusion of co-operative credits and savings societies until end 2007.
Estonia:
Lower levels of bank deposit guarantees and investor compensation until end 2007.
Hungary:
Exclusion of two specialised banks and lower levels of investor compensation until end-2007.
Latvia:
Exclusion of credit union and lower levels of bank deposit guarantees and investor compensation until end-2007.
Lithuania:
Exclusion of credit union and lower levels of bank deposit guarantees and investor compensation until end-2007.
Poland:
Exclusion of credit unions and specialised banks; lower level of investor compensation until end-2007.
Slovakia:
Lower level of investor compensation until end-2006.
Slovenia:
Lower level of capital requirements for savings and loan undertakings until end-2004.
Chapter 4: Free movement of capital:
Cyprus:
5 years for acquisition of second homes except for those already residing in Cyprus.
Czech Republic:
5 years for acquisition of second homes except for those already residing in the Czech Republic;
7 years (possibly 10, if a safeguard clause is invoked) for acquisition of agricultural and forestry land, except for self-employed farmers.
Estonia:
7 years (possibly 10, if a safeguard clause is invoked) for acquisition of agricultural and forestry land, except for self-employed farmers, who have been residing for 3 years in Estonia.
Hungary:
7 years (possibly 10, if a safeguard clause is invoked) for acquisition of agricultural and forestry land, except for self-employed farmers, who have been residing for 3 years in Hungary.
5 years for acquisition of second homes except for those, who have been residing in Hungary for 4 years.
Latvia:
7 years (possibly 10, if a safeguard clause is invoked) for acquisition of agricultural and forestry land, except for self-employed farmers, who have been residing for 3 years in Latvia.
Lithuania:
7 years (possibly 10, if a safeguard clause is invoked) for acquisition of agricultural and forestry land, except for self-employed farmers, who have been residing for 3 years in Lithuania.
Malta:
Permanent derogation (not just for a transitional period) as regards the acquisition of second homes, except for those, who have been residing on Malta for 5 years.
Poland:
12 years for acquisition of agricultural and forest land, except for self employed farmers, who have been working in Poland for 3 or 7 years;
5 years for acquisition of second homes, except for those, who have been residing 4 years in Poland.
Slovakia:
7 years (possibly 10, if a safeguard clause is invoked) for acquisition of agricultural and forestry land, except for self-employed farmers, who have been residing for 3 years in Slovakia.
Chapter 6: Competition policy
Cyprus:
Phase-out of incompatible fiscal aid by the end of 2005.
Czech Republic:
Restructuring of the steel industry to be completed by 31 December 2006.
Hungary:
Phase-out of incompatible fiscal aid for SMEs by the end of 2011;
Phase-out of incompatible fiscal aid for off-shore companies by the end of 2005;
Phase-out of incompatible fiscal aid granted by local authorities by the end of 2007.
Malta:
Phase-out of incompatible fiscal aid for SMEs by the end of 2011;
Aid for shipbuilding sector until the end of 2008;
Phase-out of operating aid under the Business Promotion Act by the end of 2008;
Adjustment of market for petroleum products by the end of 2005.
Poland:
Phase-out of incompatible fiscal aid for small enterprises by the end of 2011;
Phase-out of incompatible fiscal aid for medium enterprises by the end of 2010;
Transitional arrangements for state aid to environmental protection;
- Restructuring of steel industry until end of 2006.
Slovakia:
Conversion of incompatible fiscal aid to a beneficiary in the motor-vehicle sector into regional investment aid;
Fiscal aid to a beneficiary in the steel sector until 2009.
Chapter 7: Agriculture
General comments: All 10 accession countries will gradually phase in EU agricultural direct payments between 2004 and 2013. In 2004 by 25%, in 2005 by 30%, in 2006 by 35% of the present system. Then the payments will increase by 10% steps to reach 100% in 2013.
The new Member States will have special additional financial aid for rural development and a higher proportion of EU co-financing in rural development projects for a limited period.
New Member States will be able to use rural development funds for special schemes to restructure their rural sectors.
Reference quantities (for example quotas) have been agreed individually.
In some cases, transitional periods have been agreed for the adoption and implementation of certain parts of EU-legislation relating to the Common Agricultural Policy.
