Saturday, May 12, 2007
9th May 2007
AUN MEETING held at Restaurante Asia, Benissa
The meeting went ahead, despite Chuck and Lisa Svoboda both having very bad colds and sore throats. The former was the principal spokesperson, aided by Hubert V. who provided German translation, and others who helped with Spanish and French.
European Parliament
As already reviewed at a previous meeting the Petitions Committee ( FFV) visit at the end of February was for five days. Having arrived in Madrid, the FFV travelled to Almeria, Murcia, Valencia and back to Madrid. Apart from “victims” the delegation met with EU Ambassadors in Madrid, the British Consul and various town officials, plus representatives of the Valencian and Madrid Governments. The Valencian Government hosted a large and hostile gathering presided over by its own Minister for Urbanismo ( Conseller Gonzalez Pons) and attended by an equally angry group of developers and promoters in Valencia. (Having criticised the fact finding mission for spending less than it would cost a land law victim for legal fees, the Valencian Government went on to spend some €500,000 to take PP Mayors to a tourist fair in Berlin and a week or so later later, some 40 promoters to an impromptu exhibit in Brussels timed to coincide with the Petitions Committee meeting, in order to offset the effect of the fact finding mission.) The FFV Report was ready within two weeks, and was adopted by the Petitions Committee on 11th April. The vote had 15 members in favour 3 against (all Spanish PP from Valencia), the other EPP ( ie. from other EU states) representatives left the room rather than have to vote and reveal divisions. A number of Spanish MEPs supported the report.
During the visit the Valencian Government managed to upset and insult the MEPs – this was observed in the report and without helped our cause considerably in most quarters. All three reports thus far from the EuroParl proclaim the land laws to be totally unacceptable in terms of EU law and against the rights of EU citizens.
Michael Cashman MEP, is still busy helping and supporting the fight for changes to the land laws.
Demonstrations against Land Laws
There have been several demonstrations against the land laws in various parts of Valencia during the past few weeks. Whilst some members/supporters of AUN have informally joined in these demonstrations, it was not felt appropriate for AUN as such to take part alongside radical and nationalist protesters who have platforms with which we do not agree. It is good that others are getting mobilized against the land law and environmental abuses, but some of these are becoming excessively nationalistic and radical.
There is a planned demonstration by AUN and others who wish to join us which will take place on 2nd June in Valencia. Permissions have been applied for and more details will follow when plans are finalized – the route should start in the large square by the Church at 11.00. It is felt more suitable to let others cause upsets prior to the elections, we will deal with the new Government after the elections – when we will prove to them that we are still here and still fighting. ( Theme: We didn’t cause the problems: We suffer from the problems: We must be part of the answer to them.)
Stock Market and Property Market
Recently, as predicted, the house market has begun to collapse with related problems on the stock market. The AUN regularly-almost day by day- informs important journalists and media outlets of the situation regarding the land laws. A good sign for homeowners is that in recent weeks the local newspapers Costa Blanca News and CostaNachrichten have also shown more concern and interest in the problems and given extra coverage of the situation. Britain´s Daily Telegraph has had a large article regarding land problems which was printed in the Business Section. Bloomberg, New York Times, Herald Tribune, the Economist and the Financial Times and are amongst the most recent non Iberian media outlets to take on the fight. TV Channel 4, amongst other Spanish media will be showing a programme before the elections, which should help the fight and further the argument against the Valencian Government’s policies and practices. Unfortunately, as in a lot of cases, things could get worse before they get better, but hopefully it will not be too long before families who wish to do so should find it easier to sell because there should be a safer market for purchasing property.
Local Elections
The AUN has no electoral affiliations, however it suggests that when considering who to vote for, it is extremely important that you take a long hard look at the propaganda from each party, and be skeptical of promises made. The best outcome for residents is for minority governments who will be more responsive to local issues and rights and thus work harder for the people. Absolute majorities or construction oriented coalitions do not respect peoples’ rights as has been shown all over Spain.
The next matter being discussed concerned the local area of Benissa (see foot of notice).
Court of Human Rights
At long last the first twelve or so cases will soon be presented to the Court of Human Rights ( ECHR) in Strasbourg. At this point Charles explained the AUN Legal Fund procedure, whereby a donation of 50 euros from everyone helps to pay the legal fees (€300) for the few in order to establish ECHR precedents, win cases and help the many. Members of AUN who have joined the Legal Fund are eligible for their contingency fee being paid to the British solicitors Irwin Mitchell. If the case is lost there is no further payment due. If the case is won, the homeowner is liable for 20% of the compensation awarded by the ECHR. In effect, because of the rigorous screening processes involved, any case making it onto the ECHR court docket has a good chance of success.
Title Insurance
The Society has been trying to obtain Title Insurance for the last two years. Until now no company has previously shown any interest. Recently a new company has done so and the matter is being looked into and considered. Cost, the extent and the amount of coverage are important issues to clarify-plus discounts for AUN members! More on this soon.
ANY OTHER BUSINESS
A question was asked as to whether the foreign press were aware of the financial problems in Spain, we were assured that all media are given information regularly from AUN and Ciudadanos Europeos. We were reminded that the BBC has also carried a story recently on their website. In recent weeks the foreign and Spanish media have been full of stories, regarding the plummet in Astroc shares ( 77%) with a capital loss of many billions of Euros-which has had a knock on effect for the IBEX and several Spanish banks.
The originater of Astroc is a recently rich Valencian , who began as a part owner of a small factory and who through manipulating local laws buying land and getting greedy town halls to reclassify the status of the ground, had managed to acquire a fortune of some 9 billion euros. (9,000,000,000)- for a time the world’s 95th richest man.
He has recently lost a lot of this, thanks to the scandals relating to the land laws, higher interest rates, etc.
Apparently the more serious financial problems of Spain have come about due to the banks’ assistance in investing in building projects, which are becoming less feasible or practical. At the present time the Spanish Central bank reports that 250 billion euros are owed to banks by developers. This amount is one quarter of Spain´s national product (GNP) . When this amount is added to the amount owed to banks in mortgages the total becomes over one half of the Spanish national product.
Whilst we are all hopeful for a change in the laws and an end to the over development of Spain, the financial and social consequences could be bad for everyone. Construction is now the main work for the Spanish – no construction, no jobs, no alternative employment. And there are a lot of the construction workers who are illegal and who have no social security safety net. This will affect us all, not only with prices of properties going down and difficulty in selling, but the crime rate from the unemployed could be a major problem.
Specific issues:
A German member from Javea, asked a question, the answer being that the Government is playing games. Both laws LRAU and LUV are both unreasonable, and should be changed. One better point of the LUV is that it states those homeowners with full services and paperwork in order, should be excluded from most infrastructure costs and if land is taken it should not be so much. There are in fact four new laws, the LUV, another one regarding the coastal environment, another as regards non buildable land and yet another pending as regards Golf courses. There is also a set of rules , that seem to be flexible and thus amended whenever a major development conflicts with them .Alas, these laws are very difficult to understand even for Spanish experts . The rules are contained in over one thousand pages, some paragraphs are one and one half pages long, some sentences contain up to one hundred words.
We were asked not to confuse land grab with construction. They are related issues, but not the same. Many prospective developers are obtaining land by land grab – then holding on to the land for months/years as an investment but no construction takes place. Meanwhile the banks have given easy loans, so promoters have their money even without facing their own risks related to building and sales. But banks are now becoming nervous about over exposure in the property market. If they begin to be more difficult in terms of loans, then the promoters may have a tougher time making money. Already a lot of their funds are going into developments in other countries, and banks are looking to the UK, etc to place their funds.
The members/supporters of AUN were reminded that it is best to try to stop the land problems before they happen. It is too late once the developers and bulldozers arrive. That means local political pressure, legal actions, etc. But there are still recourses to the EU, the Parliament , Commission and Courts, which are now becoming more effective pressure tactics.
A gentleman from Los Frailles advised that the New General Plan 2005 (PGOU) for his area came under LRAU but was not approved prior to the law changing in February 06. Now it needs to be approved but supposedly must be modified to comply with the LUV. The local PP mayor has promised that the 400 homes built in the campo would be rendered legal if he is reinstated to the council. It was suggested that the gentleman studies the promise carefully and it was also pointed out that if the houses have already been built over four years ago they may now actually be legal
( prescrito) and if knocked down now the homeowners should be compensated.
Chuck was asked – now that the Petitions Committee has visited Spain and the matter has gone to Luxembourg and Strasbourg – what is the next step? We were advised that there is no next step for now. Given the continued interest and the number of petitions being submitted, the MEPs will no doubt visit the region again, perhaps annually if necessary. The EU Commission and the Courts are already in the picture and should be taking effective action soon, led by the decisions of the Petitions Committee and the EU Parliament. The AUN is very optimistic and full of hope for a change in the laws, the Valencian Government is in a panic with the problems being in the hands of the EU and the threat of funding being decreased in 2008.
The next meeting of AUN will take likely place mid June after the May elections and the planned protest on 2nd June.
Meeting closed 17.45.
Notice for families in Benissa
Whilst the AUN is not connected or sympathetic to any electoral party, several members of AUN residents of Benissa, (Lisa, Ecky, Pauline) are running for election in name of CIBE (Citizens of Benissa).
In Benissa the majority of coastal properties are owned by non-Spanish. These homeowners pay higher taxes for poor services and are not represented in the Town Hall. It is essential all ´foreigners´ use their right to vote and get representation on the council by voting for CIBE.
For residents to find out more about the CIBE programme there are two meetings planned for next week to be held at Restaurant La Michetta (near golf course behind Pepe La Sal Supermercado) Benissa. 18.00
Tuesday 15th May For English speaking residents
Wednesday 16th May for German speaking residents
AUN MEETING held at Restaurante Asia, Benissa
The meeting went ahead, despite Chuck and Lisa Svoboda both having very bad colds and sore throats. The former was the principal spokesperson, aided by Hubert V. who provided German translation, and others who helped with Spanish and French.
European Parliament
As already reviewed at a previous meeting the Petitions Committee ( FFV) visit at the end of February was for five days. Having arrived in Madrid, the FFV travelled to Almeria, Murcia, Valencia and back to Madrid. Apart from “victims” the delegation met with EU Ambassadors in Madrid, the British Consul and various town officials, plus representatives of the Valencian and Madrid Governments. The Valencian Government hosted a large and hostile gathering presided over by its own Minister for Urbanismo ( Conseller Gonzalez Pons) and attended by an equally angry group of developers and promoters in Valencia. (Having criticised the fact finding mission for spending less than it would cost a land law victim for legal fees, the Valencian Government went on to spend some €500,000 to take PP Mayors to a tourist fair in Berlin and a week or so later later, some 40 promoters to an impromptu exhibit in Brussels timed to coincide with the Petitions Committee meeting, in order to offset the effect of the fact finding mission.) The FFV Report was ready within two weeks, and was adopted by the Petitions Committee on 11th April. The vote had 15 members in favour 3 against (all Spanish PP from Valencia), the other EPP ( ie. from other EU states) representatives left the room rather than have to vote and reveal divisions. A number of Spanish MEPs supported the report.
During the visit the Valencian Government managed to upset and insult the MEPs – this was observed in the report and without helped our cause considerably in most quarters. All three reports thus far from the EuroParl proclaim the land laws to be totally unacceptable in terms of EU law and against the rights of EU citizens.
Michael Cashman MEP, is still busy helping and supporting the fight for changes to the land laws.
Demonstrations against Land Laws
There have been several demonstrations against the land laws in various parts of Valencia during the past few weeks. Whilst some members/supporters of AUN have informally joined in these demonstrations, it was not felt appropriate for AUN as such to take part alongside radical and nationalist protesters who have platforms with which we do not agree. It is good that others are getting mobilized against the land law and environmental abuses, but some of these are becoming excessively nationalistic and radical.
There is a planned demonstration by AUN and others who wish to join us which will take place on 2nd June in Valencia. Permissions have been applied for and more details will follow when plans are finalized – the route should start in the large square by the Church at 11.00. It is felt more suitable to let others cause upsets prior to the elections, we will deal with the new Government after the elections – when we will prove to them that we are still here and still fighting. ( Theme: We didn’t cause the problems: We suffer from the problems: We must be part of the answer to them.)
Stock Market and Property Market
Recently, as predicted, the house market has begun to collapse with related problems on the stock market. The AUN regularly-almost day by day- informs important journalists and media outlets of the situation regarding the land laws. A good sign for homeowners is that in recent weeks the local newspapers Costa Blanca News and CostaNachrichten have also shown more concern and interest in the problems and given extra coverage of the situation. Britain´s Daily Telegraph has had a large article regarding land problems which was printed in the Business Section. Bloomberg, New York Times, Herald Tribune, the Economist and the Financial Times and are amongst the most recent non Iberian media outlets to take on the fight. TV Channel 4, amongst other Spanish media will be showing a programme before the elections, which should help the fight and further the argument against the Valencian Government’s policies and practices. Unfortunately, as in a lot of cases, things could get worse before they get better, but hopefully it will not be too long before families who wish to do so should find it easier to sell because there should be a safer market for purchasing property.
Local Elections
The AUN has no electoral affiliations, however it suggests that when considering who to vote for, it is extremely important that you take a long hard look at the propaganda from each party, and be skeptical of promises made. The best outcome for residents is for minority governments who will be more responsive to local issues and rights and thus work harder for the people. Absolute majorities or construction oriented coalitions do not respect peoples’ rights as has been shown all over Spain.
The next matter being discussed concerned the local area of Benissa (see foot of notice).
Court of Human Rights
At long last the first twelve or so cases will soon be presented to the Court of Human Rights ( ECHR) in Strasbourg. At this point Charles explained the AUN Legal Fund procedure, whereby a donation of 50 euros from everyone helps to pay the legal fees (€300) for the few in order to establish ECHR precedents, win cases and help the many. Members of AUN who have joined the Legal Fund are eligible for their contingency fee being paid to the British solicitors Irwin Mitchell. If the case is lost there is no further payment due. If the case is won, the homeowner is liable for 20% of the compensation awarded by the ECHR. In effect, because of the rigorous screening processes involved, any case making it onto the ECHR court docket has a good chance of success.
Title Insurance
The Society has been trying to obtain Title Insurance for the last two years. Until now no company has previously shown any interest. Recently a new company has done so and the matter is being looked into and considered. Cost, the extent and the amount of coverage are important issues to clarify-plus discounts for AUN members! More on this soon.
ANY OTHER BUSINESS
A question was asked as to whether the foreign press were aware of the financial problems in Spain, we were assured that all media are given information regularly from AUN and Ciudadanos Europeos. We were reminded that the BBC has also carried a story recently on their website. In recent weeks the foreign and Spanish media have been full of stories, regarding the plummet in Astroc shares ( 77%) with a capital loss of many billions of Euros-which has had a knock on effect for the IBEX and several Spanish banks.
The originater of Astroc is a recently rich Valencian , who began as a part owner of a small factory and who through manipulating local laws buying land and getting greedy town halls to reclassify the status of the ground, had managed to acquire a fortune of some 9 billion euros. (9,000,000,000)- for a time the world’s 95th richest man.
He has recently lost a lot of this, thanks to the scandals relating to the land laws, higher interest rates, etc.
Apparently the more serious financial problems of Spain have come about due to the banks’ assistance in investing in building projects, which are becoming less feasible or practical. At the present time the Spanish Central bank reports that 250 billion euros are owed to banks by developers. This amount is one quarter of Spain´s national product (GNP) . When this amount is added to the amount owed to banks in mortgages the total becomes over one half of the Spanish national product.
Whilst we are all hopeful for a change in the laws and an end to the over development of Spain, the financial and social consequences could be bad for everyone. Construction is now the main work for the Spanish – no construction, no jobs, no alternative employment. And there are a lot of the construction workers who are illegal and who have no social security safety net. This will affect us all, not only with prices of properties going down and difficulty in selling, but the crime rate from the unemployed could be a major problem.
Specific issues:
A German member from Javea, asked a question, the answer being that the Government is playing games. Both laws LRAU and LUV are both unreasonable, and should be changed. One better point of the LUV is that it states those homeowners with full services and paperwork in order, should be excluded from most infrastructure costs and if land is taken it should not be so much. There are in fact four new laws, the LUV, another one regarding the coastal environment, another as regards non buildable land and yet another pending as regards Golf courses. There is also a set of rules , that seem to be flexible and thus amended whenever a major development conflicts with them .Alas, these laws are very difficult to understand even for Spanish experts . The rules are contained in over one thousand pages, some paragraphs are one and one half pages long, some sentences contain up to one hundred words.
We were asked not to confuse land grab with construction. They are related issues, but not the same. Many prospective developers are obtaining land by land grab – then holding on to the land for months/years as an investment but no construction takes place. Meanwhile the banks have given easy loans, so promoters have their money even without facing their own risks related to building and sales. But banks are now becoming nervous about over exposure in the property market. If they begin to be more difficult in terms of loans, then the promoters may have a tougher time making money. Already a lot of their funds are going into developments in other countries, and banks are looking to the UK, etc to place their funds.
The members/supporters of AUN were reminded that it is best to try to stop the land problems before they happen. It is too late once the developers and bulldozers arrive. That means local political pressure, legal actions, etc. But there are still recourses to the EU, the Parliament , Commission and Courts, which are now becoming more effective pressure tactics.
A gentleman from Los Frailles advised that the New General Plan 2005 (PGOU) for his area came under LRAU but was not approved prior to the law changing in February 06. Now it needs to be approved but supposedly must be modified to comply with the LUV. The local PP mayor has promised that the 400 homes built in the campo would be rendered legal if he is reinstated to the council. It was suggested that the gentleman studies the promise carefully and it was also pointed out that if the houses have already been built over four years ago they may now actually be legal
( prescrito) and if knocked down now the homeowners should be compensated.
Chuck was asked – now that the Petitions Committee has visited Spain and the matter has gone to Luxembourg and Strasbourg – what is the next step? We were advised that there is no next step for now. Given the continued interest and the number of petitions being submitted, the MEPs will no doubt visit the region again, perhaps annually if necessary. The EU Commission and the Courts are already in the picture and should be taking effective action soon, led by the decisions of the Petitions Committee and the EU Parliament. The AUN is very optimistic and full of hope for a change in the laws, the Valencian Government is in a panic with the problems being in the hands of the EU and the threat of funding being decreased in 2008.
The next meeting of AUN will take likely place mid June after the May elections and the planned protest on 2nd June.
Meeting closed 17.45.
Notice for families in Benissa
Whilst the AUN is not connected or sympathetic to any electoral party, several members of AUN residents of Benissa, (Lisa, Ecky, Pauline) are running for election in name of CIBE (Citizens of Benissa).
In Benissa the majority of coastal properties are owned by non-Spanish. These homeowners pay higher taxes for poor services and are not represented in the Town Hall. It is essential all ´foreigners´ use their right to vote and get representation on the council by voting for CIBE.
For residents to find out more about the CIBE programme there are two meetings planned for next week to be held at Restaurant La Michetta (near golf course behind Pepe La Sal Supermercado) Benissa. 18.00
Tuesday 15th May For English speaking residents
Wednesday 16th May for German speaking residents
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