Commissioner Michael McGrath, in a written answer on 23 July 2026, declined to assess German media reports of planned municipal pre-emption rights for real estate purchases based on anti-constitutional assessments, stressing that national rules on property acquisition fall within member state competence. The answer, responding to a question from Irmhild Boßdorf (ESN), noted that the Charter of Fundamental Rights applies to member states only when implementing EU law, and that any restrictions on free movement of capital under Article 63 TFEU must be justified by overriding public interest, proportionate, and respect legal certainty and non-discrimination.
The question raised concerns that the reported German plan—giving municipalities extended pre-emption rights where security authorities deem acquirers to have anti-constitutional aspirations, based on predicted political activities or suspicions—could violate fundamental rights and internal market freedoms. McGrath's answer contained no concrete proposals, numerical targets, or deadlines, and did not signal any Commission investigation or infringement procedure. The policy orientation is deferential to member state sovereignty, with the Commission refraining from commenting on unconfirmed media reports and reiterating general EU law principles. No institutional follow-up was announced, leaving the matter to potential future action if Germany formally notifies such rules.