Brussels, 25/06/2013 (Agence Europe) - The European Commission says that an Andalucian law to gives too much protection to families and jeopardises recovery of the Spanish housing market.
A spokesman for Euro Commissioner Olli Rehn explained to Spanish newspaper El Pais that the European Commission has no desire to interfere in regional laws, but fears that the law goes beyond a balanced approach that provides protection for the most vulnerable and ensures financial stability, thus confirming reports in that newspaper that the Commission had written to the Conservative Spanish government asking for explanations about the law introduced this spring by the left-wing majority government of the Spanish region of Andalucia.
The law takes away banks' usufruct from some housing for up to three years, thus preventing them from evicting families whose monthly income is below €1,600. It also requires banks and building societies that own empty property to rent them out or be fined up to €9,000. Seven cases have so far been launched against banks under the law.
The Commission says the Andalucian decree is a disincentive for investors, while the bursting of the Spanish property bubble forced Spain to ask for €40 billion of European aid to bail out its banks. The Commission fears the law will also negatively impact on the value of property in Spain, which might have repercussions for the “bad bank” (SAREB) that has been given the job of managing the toxic assets of the banks bailed out with public money. (MB/transl.fl)