Change in JDK 1.7.0_25 breaks all grails applications:

https://bugzilla.redhat.com/show_bug.cgi?id=976693 

I just tried grails 2.2.3 - the problem is still not fixed, the application fails to start with an error message "Could not determine Hibernate dialect for database name [H2]".

Any workarounds suggesting to replace hibernate libraries don't work.

The following additional parameter allows to start grails:

grails -noreloading run-app

But hey, it's no fun to start in no-reloading mode! Oracle, but things back!