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The European Court of Justice has rejected an appeal made by the European Commission against the Generalitat Valencia regarding the legality behind the Region's land laws.
Issues surrounding the 'Ley Reguladora de la Actividad Urbanistica' (LRAU) - also known as the 'Valencian land-grab law' are rarely out of the local and national press in Spain and often attract critissm from Euro MP's and pressure groups, such as the AUN (Abusos Urbanistico No).
The Commission decided that the Valencia laws do not comply with European legislation on public contracts, however the appeal court considerd that Brussels had failed to show that the planning contracts denounced were in fact public contracts.
The appeal was based on public contracting for development as covered by Valencia's regional planning laws, which the Commission claimed did not meet European requirements for transparency and publicity. A report in Spain's El Pais newspaper today states that the Court of Justice has ruled that European directives on public contracting are not applicable to Valencia's regional legislation the development plans are not public contracts.