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EU Commission v Spain Case Dismissed by EU Court of Justice

Wed 5th Oct 2011

In action that may be of interest to those who have been caught up in disputes surrounding the Ley Reguladora de la Actividad Urbanistica (LRAU) - also known in the press as the 'Valencian land-grab law' - amongst other urban planning irregularities and infringements, the case has recently risen been brought before the European Court of Justice.

Legal action had been brought against he country of Spain by the European Commission relating to the application of the public procurement rules to Spanish urban development schemes, however, the ECJ dismissed the case.

The ECJ found that the European Commission had failed to prove that the main object of the contracts between the local authority and the urban developer was public works. Therefore, it had not established that the urban development contracts were public works contracts within the meaning of Directive 93/37 or Directive 2004/18.

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