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The headquarters of the Cervantes Institute in Utrecht has been seized as a precautionary measure by order of a court in the Netherlands, in the context of the litigation opened by the cuts in renewable energy premiums approved in Spain in 2013.
The measure is in response to the enforcement on Dutch territory of international arbitration awards in favour of various investor funds.
According to the court documents, to which local media have had access, the property – valued at around €10m and registered in the name of the Spanish Institute of Emigration – will be sold before a notary if the claimed compensation is not paid.
Spain was formally notified on 20 April, but so far no payment has been made.
The conflict dates back to the energy reform promoted during the government of Mariano Rajoy, which retroactively reduced the remuneration of renewable installations. This decision led to dozens of lawsuits before international arbitration tribunals, mainly the ICSID, which depends on the World Bank.
Altogether, the claims exceeded €10 billion, although the government claims to have reduced this figure by 85% thanks to various rulings and agreements.
The foreclosed building houses one of the most emblematic Spanish cultural centres in the country.
Located opposite the cathedral and the Dom tower, the Instituto Cervantes in Ultrecht occupies a renovated 1913 church acquired by the state in 1972. It has classrooms, an assembly hall and a specialised library. The institution also has an “extension” in Amsterdam.
Sources close to the creditors maintain that the property would not be protected by sovereign immunity as it is a cultural institution, which complicates the Spanish defence while the legal battle continues over outstanding debts with the renewables sector.