Commission takes Spain to court over 'land grabs'

The controversial law affected thousands of people, notably expats who had bought property in Spain and were awarded little or no compensation when their gardens or houses were seized by contractors to make way for new developments at the height of the building boom in the Mediterranean country.

Spain's regulators have allegedly violated European Union's contract laws and basic property rights. The legal action brought by the Commission could result in hefty fines for Spain and force regional governments to revise their planning laws.

The case will also be the subject of further hearings within the European Parliament's petitions committee in September. A 2004 European Parliament report described the law as “surreal” and demanded financial compensation for homeowners who lost property.

Lobby groups representing individuals affected by land grabs and which have campaigned since 2004 were jubilant about the Commission's decision. But Charles Svoboda, the vice-president of one of these groups, Abusos Urbanisticos No, recognised that any victory would be largely symbolic, since the ECJ cannot compensate victims. His group, which has some 30,000 members in Valencia, where confiscation has been common, now plans to take the case to the European Court of Human Rights.