Monday, October 16, 2006

Spain gets two months to fix land-grab law

The ongoing deep concern of property owners in Spain, especially those in the Valencia region, over the so-called ‘land grab’ law may be slightly eased as Brussels issues its second ultimatum to the country.

The European Union will take Spain to the European Court of Justice if does not take action to remedy the law, it has said. This time Brussels has given Madrid two months to fix the problem.

It is the second ultimatum in less than a year over the law that has forced hundreds of people with properties in Valencia to sell up all or part of their property or pay huge bills for services they say they do not need.

The law, which was introduced in 1994, allows developers to compulsorily purchase homes and re-designate for rural land for urban development.

Originally, it was designed to stop speculation by developers who would hold on to rural land until the price went up.

But, according outrageous and frightened property owners it has been manipulated by ruthless developers who simply ask local authorities to reclassify rural land as 'urban'.

Brussels agrees with the owners who, once the land is reclassified are forced to pay for amenities like roads, lighting, sewage or water supplies. If they cannot pay, and many are retired so can’t afford to, they are forced to sell up or give away part of their land to the developers in lieu of the amenities they didn’t want.

The EU said Valencia should be subject to the European norms of public markets, something with which the regional government disputes.

Changes to the law have been made following previous calls to correct the law but the end result is still against EU practices.

Whatever the result of the latest ultimatum many people have already lost their homes or land and some who have been affected are taking separate cases to the European Court of Human Rights, claiming their right to property have been broken.

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