EN Official Journal of the European Union CE 70/50

(2004/C 70 E/053)

WRITTEN QUESTION E-1600/03

by Giles Chichester (PPE-DE) and Charles Tannock (PPE-DE) to the Commission

(12 May 2003)

Subject: Arbitrary expropriation of property in the Valencia region of Spain

Can the Commission confirm that a property law introduced in the region of Valencia in 1994 during the time of the last socialist administration in Spain which allows property developers to seize land from its owners if approved by the local authority is still extant? It is reported in the British press that private developers are doing deals with local councillors which result in increasing numbers of seizures of properties and land with owners required to respond to proposals within fifteen days, and that these proposals are often sent during the holidays when the owners are away. One British resident, for example, was reported to have spotted two men walking through the vineyards surrounding his property and discovered a year later that they were, in fact, developers who had applied to the local authority to have his home ‘urbanised’. After a long legal battle he was eventually forced to hand-over two-thirds of what he owned, including his swimming pool, kitchen and bedroom as well as approximately EUR 6 650 in cash. In addition to being arbitrarily dispossessed or partly dispossessed, owners are required to pay for the installation of new roads, street lighting and drainage schemes for the new homes built by the developers. The charges are set not by the local authority, but by the developers and can run into thousands or even tens of thousands of Euros.

A large proportion of residents affected are believed to be foreign EU residents. A great deal of foreign capital has moved from other EU states to Spain over the last fifteen years contributing significantly both to Spain's recent prosperity and to its export figures. The EU treaties prevent discrimination against other EU nationals. Article 14 (2) of the Consolidated Version of the Treaty Establishing the European Community also states that: ‘The internal market shall comprise an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured in accordance with the provisions of this Treaty’ whilst Article 28 states that ‘Quantitative restrictions on imports and all measures having equivalent effect shall be prohibited between Member States.’

Can the Commission indicate whether it is aware of this extraordinary situation, whether it has raised the matter with the Spanish government and whether there are any legally binding treaty commitments on the part of Member States not to arbitrarily expropriate or allow the arbitrary expropriation of property?

Will the Commission endeavour to find-out if it is correct that these expropriations disproportionately affect non-Spanish EU residents or even single them out, and if that proves to be the case would the Commission regard that as a flagrant breach of the treaties which would require a termination of the relevant laws or, if that does not happen, a referral by the Commission to the Court of Justice?

Answer given by Mr Vitorino on behalf of the Commission

(13 June 2003)

The conditions governing such matters as the expropriation of land are determined by the Member States and there are no EC Treaty provisions on this question.

The Commission is not aware of the applicable legislation on expropriation in Spain nor of the alleged fact that expropriations affect foreign Union residents in a disproportionate way.

The Commission will request the Spanish authorities information on this question in order to ensure that that the principle of non discrimination laid down in the EC Treaty has not been breached.