European Parliament resolution on the alleged abuse of the Valencian Land Law or Ley Reguladora de la Actividad Urbanistica (LRAU - law on development activities) and its effect on European citizens (Petitions 609/2003, 732/2003, 985/2002, 1112/2002, 107/2004 and others) (2004/2208(INI))
Date: 2005-12-13
Institutions: European Parliament, Provisional data
Subjects: Community of Valencia, area management, expropriation, land and buildings, town-planning regulations, town-planning scheme, urbanisation

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P6_TA(2005)0509

Immunity of Bruno Gollnisch

European Parliament decision on the request for defence of the immunity and privileges of Bruno
Gollnisch (2005/2072(IMM))

The European Parliament,

— having regard to the request by Luca Romagnoli for defence of the immunity of Bruno Gollnisch, by

letter of 7 April 2005, announced in plenary sitting on 14 April 2005,

— having heard Bruno Gollnisch in accordance with Rule 7(3) of its Rules of Procedure,

— having regard to Articles 9 and 10 of the Protocol of 8 April 1965 on the Privileges and Immunities of
the European Communities and Article 6(2) of the Act of 20 September 1976 concerning the election
of the members of the European Parliament by direct universal suffrage,

— having regard to the judgments of 12 May 1964 and 10 July 1986 (1) of the Court of Justice of the

European Communities,

— having regard to Article 26 of the French Constitution,

— having regard to Rules 6(3) and 7 of its Rules of Procedure,

— having regard to the report of the Committee on Legal Affairs (A6-0376/2005),

1.

Decides not to defend the immunity and privileges of Bruno Gollnisch.

(1) Case 101/63 Wagner v Fohrmann and Krier [1964] ECR 195 and Case 149/85 Wybot v Faure and others [1986]

ECR 2391.

P6_TA(2005)0510

Application of development legislation

European Parliament resolution on the alleged abuse of the Valencian Land Law or Ley Reguladora
de la Actividad Urbanistica (LRAU — law on development activities) and its effect on European
citizens (Petitions 609/2003, 732/2003, 985/2002, 1112/2002, 107/2004 and others) (2004/2208(INI))

The European Parliament,

— having regard to Article 6 of the Treaty on European Union which transposes the provisions of the
European Convention for the Protection of Human Rights and Fundamental Freedoms (ECHR), and
Article 7 of that Treaty, which provides for a procedure to determine serious and persistent breaches
of the principles mentioned in Article 6,

— having regard to Directives 92/50/EEC (1) and 93/37/EEC (2) on public procurement, Directives 85/337/
EEC (3), 97/11/EC (4) and 2001/42/EC (5) on environmental impact assessment, and Directive 2000/60/
EC (6) on water policy,

(1) Council Directive 92/50/EEC of 18 June 1992 relating to the coordination of procedures for the award of public

service contracts (OJ L 209, 24.7.1992, p. 1).

(2) Council Directive 93/37/EEC of 14 June 1993 concerning the coordination of procedures for the award of public

works contracts (OJ L 199, 9.8.1993, p. 54).

(3) Council Directive 85/337/EEC of 27 June 1985 on the assessment of the effects of certain public and private projects

on the environment (OJ L 175, 5.7.1985, p. 40).

(4) Council Directive 97/11/EC of 3 March 1997 amending Directive 85/337/EEC on the assessment of the effects of

certain public and private projects on the environment (OJ L 73, 14.3.1997, p. 5).

(5) Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the

effects of certain plans and programmes on the environment (OJ L 197, 21.7.2001, p. 30).

(6) Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework

for Community action in the field of water policy (OJ L 327, 22.12.2000, p. 1).

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— having regard to the right of petition provided for in Articles 21 and 194 of the EC Treaty,

— having regard to Petitions 609/2003, 732/2003, 985/2002, 1112/2002, 107/2004 and others,

— having regard to Rule 192(1) of its Rules of Procedure,

— having regard to the report of the Committee on Petitions (A6-0382/2005),

A. whereas it has received a considerable number of petitions (around 15 000) from individuals and associ-
ations representing several thousand EU citizens and residents settled in the Valencian Autonomous
Region (Comunidad Valenciana); complaining about various aspects of development activities, including
the destruction of the environment and overdevelopment and in many cases protesting about the
infringement of their legitimate property rights as a result of the improper application of the Valencian
Land Law (Ley Reguladora de la Actividad Urbanística (LRAU),

B. whereas a report was drawn up on this subject by the Committee on Petitions in May 2004 setting out

specific cases illustrating serious violations of human rights and Community law,

C. whereas a new delegation appointed for a follow-up mission to that of May 2004 by the Committee on
Petitions continued the investigations in Madrid and in the Valencian Autonomous Region in June
2005,
in order to gather information and conduct interviews with the interested parties and key
players,

D. whereas the members of the delegation thus had an opportunity to hear representations from the

parties concerned, including:

— the European citizens and residents who have petitioned Parliament alleging systematic violation of

their rights as a result of the application of the LRAU,

— the president of the Valencian Regional Government (Generalitat Valenciana) and the responsible min-
isters, the president of the Valencian parliament (Cortes Valencianas) and the leaders of the political
groups, the Valencian Ombudsman (Síndic de Greuges) and the National Ombudsman (Defensor del
Pueblo), senior government officials from Madrid and Valencia, the Valencian Federation of Local Auth-
orities and Provinces, representatives of the construction industry and property developers, the ambas-
sadors of the Member States and many other interested parties,

— and, lastly, representatives of the Constitutional Court and the President of the High Court of Justice of
the Valencian Autonomous Region who without exception cooperated with openness and goodwill,
thus showing a spirit of constructive cooperation which is greatly appreciated by Parliament,

E. whereas the competence and responsibility of the autonomous regional authorities and of the Spanish
national authorities are clear and recognised in this matter and that they are enshrined in the provisions
of the Spanish Constitution of 1978 and, more particularly, with respect to the issue at stake, in Arti-
cles 10, 18, 33, 45, 47, 54, 93 and 105 thereof,

F. whereas the European institutions have a duty to enforce the provisions of the Treaties and of the
legislation adopted thereunder, having particular regard to the rights and obligations of EU citizenship,
and accordingly have a responsibility, in cooperation with the Member States, for resolving the prob-
lems affecting the EU's citizens,

G. whereas the land law in force in Spain grants land owners 90 % of the building rights and the specific
nature of the LRAU requires owners, in the event of the approval of an integrated development plan
(plan de actuación integrada — PAI) by a local authority, to surrender not only 10 % of their building
rights to the municipality without compensation as ‘patrimonio municipal de suelo’ (municipal land), but
also the land for any paths, roads, car parks, public spaces and public facilities, or to pay the devel-
opment costs decided by the developer of the new infrastructure, a procedure over which the owner
has no control whatsoever,

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H. whereas it is plain that some owners have clearly been harmed by this land development process, which
is obvious both from the petitions and from the on-site inspections, and whereas these facts are
acknowledged by all the local authorities, which is why the Valencian Regional Government is prepar-
ing a new law in order to avoid the abuses in the application of the previous one,

I. whereas the main complaints concern the methods of expropriation, which are sometimes oppressive
and based on valuations which are, in the opinion of the interested parties extremely low, with sub-
sequent onward sales at a high market prices and in circumstances where the information available
does not allow interested parties to react, all adding up to material damage and mental suffering in
many cases,

J. whereas the lack of transparency and of clear pre-set criteria makes it apparent that the methods for
awarding contracts are not in conformity with European law, which has led the Commission to send a
Letter of Formal Notice to Spain, and whereas the number of cases in which corruption has been found
or is currently alleged highlight the deficiencies of the law and its application,

K. whereas the main problems arising from the application of the LRAU concern the role of the ‘devel-
opment agent’ (urbanizador), the inadequate means of determination and publication of the contracts to
be awarded, insufficient notification to the owners of the land and the lack of clear definitions of the
concepts of ‘public interest’ and ‘adequate compensation’, issues as to which the law needs to conform,
inter alia, with the requirements laid down by the case-law of the Court of Justice of the European
Communities (ECJ) and the European Court of Human Rights (ECHR),

L. whereas the solemn proclamation of the Charter of Fundamental Rights of the European Union and the
declarations by the Presidents of the European institutions that those institutions will respect the
Charter mean, in the light of the case-law of the ECJ, that citizens may legitimately expect to enjoy
the rights enshrined in the Charter,

M. whereas Member States are obliged to respect the Charter when they apply, or are obliged to apply,
Community law in situations in which the provisions of the Charter become relevant; whereas there is
a close link between, on the one hand, the method for awarding contracts and, on the other hand, the
modalities for expropriation of property and for determining the relevant compensation,

N. whereas some land development plans seem to have a disastrous impact on the environment and the
ecology of many coastal zones and, more particularly, on the future conditions for the supply of water,
which is a subject of concern to the European Union,

O. whereas Directive 2001/42/EC requires a strategic environmental impact assessment to be carried out
for all plans and programmes which are prepared, inter alia, for ‘tourism, town and country planning or
land use’ and are likely to have significant environmental effects and which set the framework for future
development consents of projects listed in Annex I and II to Directive 85/337/EEC,

P. whereas Directive 2000/60/EC laying down a framework for water policy requires the Member States,
inter alia, to prevent the deterioration of ‘inland surface waters, transitional waters, coastal waters and
groundwater’ and obliges them to ensure a coordinated policy with respect to the ‘whole of the river
basin district’,

Q. whereas the Confederación Hidrográfica del Júcar has objected to at least 30 new land developments in
the Valencian Autonomous Region and the Commission has sent a reasoned opinion to Spain in
respect of the inadequate transposition of the Water Framework Directive,

R. whereas the fact that all these issues and all these events have become the subject of political debate at
all levels further emphasises the need for prudent and objective consideration of all of the key areas of
disagreement,

1.
Notes that tens of thousands of European citizens have for decades lived in the Valencian Autonomous
Region and are for the most part satisfied with their life there, while there is a growing demand from
Community citizens wishing to settle permanently in this European region; also notes, however, that during
the last three years there has been a substantial increase in the number of complaints regarding development
abuses;

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2.
Considers that the main problems raised by citizens have focused on the improper application of the
LRAU by those involved in the development process and on the administration by competent public auth-
orities, in particular certain local authorities and the Valencian Regional Government;

3. Welcomes, in the light of the foregoing, the decision of the Valencian Regional Government to frame
and pass a new law designed to replace the LRAU in order to avoid the acknowledged abuses in its appli-
cation of the latter, and, in particular, the invitation by the President of the Region to Parliament to submit
recommendations;

Encourages the Valencian Autonomous Region in its efforts to resolve the problem more expeditiously

4.
than has so far been the case, thus demonstrating its concern for the public;

5.
Considers that it is not its responsibility to amend the draft version of this new law, but urges that
future expropriation regulations respect, both in substance and in form, the rights of property owners and
that development projects carefully reflect the concerns for sustainable development, the environment and
ecology that constitute fundamental policies of the Union;

6.
Invites the competent authorities to take account of the following suggestions, to remedy the problems
that have arisen under the present legislation with respect to those aspects of the protection of property
rights which raise questions of human and fundamental rights, and with respect to Community law on
public procurement:

— the inclusion in the new law of a clear definition of ‘public interest’ which unambiguously prevents the
possibility that the ‘public interest’ justification for expropriation — which is a precondition for any
expropriation under European human and fundamental rights legislation — could be used for the
promotion of private, rather than public, interests,

— the establishment of binding criteria for the calculation of compensation in cases of expropriation on

the basis of the standards and principles recognised by the case-law of the ECJ and ECHR,

— fundamental review of the bases for selecting the ‘development agent’, and of the procedure for award-
ing public contracts to the ‘development agent’ selected, to ensure that such a function is compatible
with European law, given the existence of serious doubts on this subject as evidenced by the current
infringement proceedings, so as to enhance the transparency of the procedure for awarding public
contracts and to safeguard the property rights of European citizens,

— measures to ensure that each land owner concerned by any development plans is informed individually,
effectively and in good time of any plan, and any aspect thereof, which might affect his or her property
and fundamental rights, so as to guarantee an adequate possibility to consider appropriate action;

7.
Calls upon the competent Valencian and Spanish authorities to ensure that general development plans
which are likely to have significant environmental effects and which set the framework for future devel-
opment consents are made subject to a strategic environmental impact assessment pursuant to Directive
2001/42/EC;

Recalls that national competent authorities are obliged to carry out an environmental impact assess-
8.
ment in respect of planned activities belonging to a category listed in Annex I to Directive 85/337/EEC, as
amended by Directive 97/11/EC, and that the selection of projects listed in Annex II to Directive 85/337/
EEC must be made on the basis of transparent selection procedures and criteria;

9.
Urges the competent Valencian and Spanish authorities to ensure that any decisions on future devel-
opments are compatible with the requirements of Directive 2000/60/EC as regards the prudent use and
protection of water resources, and in particular to ensure the coordination of the measures taken in con-
nection with the Júcar River basin district for the achievement of the environmental objectives established
under Article 4 of that Directive;

10.
Insists that claims offices be set up, under the responsibility of the local authorities and the Valencian
Regional Government, to provide assistance for people affected by the LRAU in administrative terms, sup-
plying them with all the information required to enable them to consider the advisability of any legal action;

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11.
Is concerned about the risks associated with the development of projects that have already been
decided although not yet started and about their possible consequences (it does appear that there is some
haste to enter into new projects before promulgation of the new law which will necessarily seem more
restrictive) and insists, as a matter of urgency on the need to suspend the processing and approval of
integrated development plans (PAI) which incorporate non-development land into the development process,
regardless of whether they are newly formulated or currently being processed, pending the entry into force
of the revised legislation;

Recalls that the European Union is founded on the principles of

liberty, democracy, respect for
12.
human rights and fundamental freedoms, and the rule of law, principles which are common to the Member
States, and that Article 7 of the Treaty on European Union provides for a right of initiative of the European
Parliament as regards the procedure for determination, by the Council, of a clear risk of a serious breach of
those principles and that the Commission or one third of the Member States can initiate the procedure for
sanctioning a Member State, in the event that the violation persists;

13.
Urges the Commission to continue careful monitoring and investigation to ensure the conformity of
the new Valencian Development Law (LUV — Ley Urbanística Valenciana) legislation and its application with
Community law in the area of public procurement and related fields and keep Parliament and its competent
Committee fully informed as to developments in this regard;

Calls on the Commission to continue to exercise vigilance in terms of monitoring compliance with

14.
tendering procedures;

15. Wishes to see information about the content of its investigations and its recommendations broadly
disseminated in view of the large number of European citizens concerned (British, German, French, Belgian,
Dutch) as are Spanish citizens themselves;

16.
Asks the Commission to draw on the experiences of this episode and, in view of the large number of
EU citizens now buying land in EU countries other than their own, to consider what safeguards — legis-
lative, non-legislative or merely advisory — might be appropriate so as to protect and assist citizens under-
taking such important transactions and investments outside their home jurisdictions, and to report the
outcome of such deliberations to Parliament;

17.
Instructs its President to forward this resolution to the Council and the Commission, the Govern-
ment, Parliament and Ombudsman of the Valencian Autonomous Region, the Spanish Government and the
petitioners.

P6_TA(2005)0511

Corporate tax

European Parliament resolution on taxation of undertakings in the European Union: a common
consolidated corporate tax base (2005/2120(INI))

The European Parliament,

— having regard to the Commission non-papers ‘A Common Consolidated EU Corporate Tax Base’ and
‘Home State Taxation for Small and Medium-Sized Enterprises’, issued on 7 July 2004 and presented to
the informal Ecofin Council of 10 and 11 September 2004,

— having regard to the informal Ecofin Council of 10 and 11 September 2004 in Scheveningen,

— having regard to the communication from the Commission to the Council, the European Parliament
and the Economic and Social Committee: ‘Towards an Internal Market without tax obstacles. A strategy
for providing companies with a consolidated corporate tax base for their EU-wide activities’ (COM
(2001)0582),