European ultimatum on Valencia land law
By m.p.
Thu, 12 Oct 2006, 18:24


The European Commission has said they may refer the Valencia land law, the LUV, to the European Court of Justice, if a further formal request they have sent Spain to modify the law in line with European legislation meets with no satisfactory response.

The request is in the form of a ‘reasoned opinion’ and is the second stage of the infringement procedure which the Commission began against the LUV at the beginning of April. Brussels considers that the new law, approved last December, does not address the possibilities for infraction in public contracting detected in its predecessor, the controversial LRAU.

The Commission takes the view that the awarding of integrated action programmes - PAI - for land and town development constitutes public contracts, and as such, should be awarded in accordance with EU legislation. The Valencia authorities maintain that PAIs are not public contracts, and that the LUV does not therefore contravene EU Directives.

The Commission has given Valencia’s regional government two months to meet their ultimatum.

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