Spain referred to ECJ by Commission

Wednesday November 11th, 2009

The European Commission has decided to take Spain to the European Court of Justice regarding joint ventures set up by the publicly owned company Instituto Valenciano de Vivienda, SA (IVVSA).

IVVSA is owned by the Government of Valencia. The company conducts urban planning studies and carries out infrastructure and management activities, among other activities.

The Commission considers that by setting up joint ventures IVVSA has, in some cases, awarded public procurement contracts to those joint ventures in contravention of certain provisions of Directives 92/50/EEC, 93/37/EEC and 93/36/EEC.

The Commission has concluded that this is in violation of the principle of equal treatment referred to in those Directives. Hence they believe that, when awarding those contracts, IVVSA did not comply with the Directives.

This case is at stage three of the infringement process and Spain will now be referred to the ECJ.

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