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Victoria Mindova

Unclear remains the fate of illegal and semi-legal buildings in Greece, after the former Economy Minister George Papakonstantinou assumed his new post as the Minister of Environment, Energy and Climate Change. His predecessor Tina Birbili introduced a law last year and stated that the owners of buildings, structures and unfinished buildings without permits would be allowed to register them in the urban planning services after paying a fine. It is calculated based on the size of the unregistered building and the property tax assessment, but it does not imply its legalization.

The right to apply for settlement of illegal buildings had to expire at the end of this month. Papakonstantinou stated that the Ministry extends the term by the end of October. In this period, property owners may apply, informing the state about the changes, so as to save the big fines that will follow after the deadline. Over 600,000 applications have been received and the fines paid exceed 150 million euros, which is higher than the revenues expected from this procedure.
 
However, the problem remains. Even before the cabinet reshuffling George Papakonstantinou and Tina Brbili had a clash of opinions on what should be the fate of illegal buildings. Birbili argued that no owners of illegal buildings should be rewarded for the transgression of the law and they would remain illegal regardless of the fine paid. Papakonstantinou, in turn, supported the idea that once the buildings or outbuildings are registered and the penalty fees are paid, they should be legalized.

It seems that since Papakonstantinou became Minister of Environment, he could step back from his firm position. During his first official press conference in the new Ministry he said that the issue of illegal buildings is the thin red line, which he would not cross without specifying what he meant.

According to some sources, the illegal construction in Greece flourished in the past 30 years and the problem is not solved yet. The Minister said he is not ready yet to respond what their fate would be. However, there was a leak to the Greek press earlier this week that there would be a legalization procedure. Papakonstantinou neither denied it, nor confirmed it. He said that a new action plan would be made in the coming weeks which would determine the fate of the buildings and outbuildings made without permission.

Another of George Papakonstantinou’s ambitions is to reorganize the urban planning services which currently have two main functions. The first is to issue building permits and the second is to carry out construction supervision. From now on, permits will be issued by town-halls and municipalities as they have the clearest view of the urban areas needs. The supervision will be entrusted to private agencies that will be licensed by the Ministry of Environment and will consist of architects and engineers. According to the Deputy Minister of Environment Nikos Sifounakis, the need to reform and decentralize urban planning services is urgent. He defined them as completely chaotic and acting in terms of lack of transparency, which largely favours the high level of corruption in the construction sector.