The EU demands an explanation on the plan of confiscating properties from banks.

The European Commission wants more details on the plans of Andalusia and other autonomous regions to confiscate temporarily properties from banks, as it doubts this can be compatible with the commitments reached by Spain in order to receive European financial aid.

In a letter addressed to the Ministry of Economy, the European Commission declares its concern on the initiatives of some regional governments on temporary confiscations of properties from banks, evictions or the establishment of sanctions on empty homes.

The European authorities consider that these proposals could be against the commitments taken on by Spain with the signature of the Memorandum of Understanding (MOU), the document that holds the conditions imposed in order to receive funds from its European partners to rescue its financial system.

A warning to regional governments such as the one in Andalusia or the Canary Islands that one month ago showed their intention to confiscate temporarily properties so as to prevent the eviction of families that were not able to pay their mortgages. (…)

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