Greece is moving to accelerate investment in areas affected by the phase-out of lignite, with a proposed regulation aimed at unlocking land that has been granted for projects but remains unused.
The provision, included in a new bill from the Ministry of Rural Development and Food that has been put out for public consultation until Sept. 7, concerns the lignite phase-out zones in Western Macedonia and Megalopolis.
The proposed rules would apply both to new land concessions and to older concessions that have remained on paper without substantial progress.
Two-year deadline for investments
The key change is a reduction in the time allowed to complete an investment within the lignite phase-out zones to two years, from the current five-year period.
If an investment is not completed within the new deadline, the land concession would be revoked.
The proposed legislation could also apply to concessions that have already been approved. Each case would be examined separately through a specifically justified decision, taking into account factors including the level of progress on the investment and the public interest.
According to sources at the Ministry of Rural Development and Food, the aim is to release land where no economic activity is taking place.
Where an investment has stalled and there has been no substantial progress, the concession could be revoked, allowing the land to be made available for another investment.
The objective is for released land to be directed toward new projects that can generate productive activity, jobs and income for local economies affected by the lignite phase-out.
Concessions for investments of at least €5 million
The proposed bill would establish a process for granting the use of land for qualifying investments without an auction.
An investment of at least €5 million would be eligible if it concerns the primary sector or processing related to it, regardless of whether the investment is developed entirely or partly on the land being granted.
The competent body of the Ministry of Rural Development and Food would issue a decision within 30 days of an applicant submitting a request.
The land would be granted for a fee and without an auction following an application identifying the property by area, location and coordinates under Greece’s national geodetic reference system.
The concession decision would specify its terms and conditions, duration, fee, payment method and start date, as well as any other necessary details.
Concessions could last up to 60 years
The initial concession period would be up to 40 years, with the possibility of an additional 20-year extension following an application by the investor.
The fee would be determined by the Auction Committee, while the investment would have to be completed within two years. Failure to meet the deadline would result in the concession being revoked.
For concessions that have already been issued, the competent body of the Ministry of Rural Development and Food would issue a specifically justified decision after assessing the progress of the investment and the public interest.
Rules also target long-standing land disputes
The bill also includes a separate measure addressing long-standing ownership disputes involving agricultural properties.
It would broaden the scope of a legal framework under which the Greek state does not assert ownership rights over certain properties that have been subject to land distribution or consolidation procedures but remain affected by state ownership claims.
The aim is to provide greater legal certainty for private owners holding title documents and reduce outstanding disputes that prevent properties from being put to productive use.
Special provisions for former Lake Karla land
Particular attention is given to land exposed following the drainage of Lake Karla in Thessaly.
Under the proposed provision, these properties would be brought within the framework under which the state does not assert ownership rights, subject to the conditions established by existing legislation.
The measure would not be limited to the former lake area. It would also extend relevant procedures to areas already covered by Law 5024/2023, which concerns the state’s non-assertion of rights over properties that were subject to distribution under agricultural legislation.
Among other provisions, the bill would allow corrections to initial land registry entries and establish specific conditions under which the state could assert ownership rights.
Pending applications concerning the state’s non-assertion of rights could also be archived when the properties involved have already completed another legally prescribed process in favor of a third party.
The measure seeks to resolve ownership disputes that have left properties tied up for years, preventing their owners from using them, while establishing clearer rules for state claims.
