The Council of State (StE) has issued a decision that opens the way for the completion of dozens of “frozen” construction projects, while also introducing new institutional safeguards. The StE deemed the presidential decree from the Ministry of Environment regarding building permits issued under the incentives of the New Building Code (ΝΟΚ) as legal, with minor observations.

This ruling is considered crucial for the continuation of construction activity, as it allows the completion of projects that had been suspended due to legal appeals — but only under specific conditions.

The court did not reject the regulation introduced by the Ministry four months ago, but it did require an environmental pre-assessment for any case in which a building is to be legalized by exception. This applies to permits that have been annulled or are under litigation, provided that construction began before December 11, and to projects for which funding has been requested through the Recovery Fund or the NSRF.

The aim of this intervention is to balance the need for continuing construction with the protection of the urban and natural environment, placing the concept of environmental offsetting at the core of urban planning policy.

Environmental Pre-Assessment Before Any Legalization

According to reports, the StE’s main comment concerns the requirement of an environmental pre-assessment before approving any “special plan” for environmental offsetting. This is to determine whether a Strategic Environmental Impact Assessment (SEIA) is necessary.

The pre-assessment is a preliminary evaluation of the possible environmental impacts of a project. If it finds that the project may significantly affect the environment, then a full SEIA is required.

In this way, the StE aims to ensure that exceptions do not become the rule, at the expense of environmental protection. Although relevant authorities don’t expect widespread cases, the Court’s message is clear: urban planning flexibility must come with justified environmental accountability.

What the Presidential Decree Specifies

The presidential decree details the regulation for the New Building Code issued by the Ministry after the Council of State annulled the blanket application of its incentives last summer. It focuses on two critical parameters:

1. Establishing the start of construction activity before December 11, 2024, as the cutoff for maintaining permit validity.
2. Allowing “exceptional completion” of projects already in progress, on condition of paying environmental compensation.

This compensatory amount will be deposited into a special account at the Deposits and Loans Fund and then transferred to the relevant municipality for environmental enhancement projects, under plans approved by KESYPOTHA (the Central Council for Urban Planning Issues).

The December 11 “Red Line”

“Start of construction work” is defined as excavations or foundations, demolitions carried out up to six months before the deadline, or archaeological excavations under a valid permit. Proof can be based on administrative documents, aerial photographs, statements, or contracts with verified dates.

The approval of the decree enables the completion of halted projects in areas like Alimos, Vari–Voula–Vouliagmeni, Kifisia, and Athens, hinting at a new wave of appeals.

Council of State Sends a Clear Message

The StE’s decision is seen as both an institutional and political victory for the Ministry of Environment. It unblocks a contentious issue that had caused uncertainty in the construction sector and tensions in local communities. At the same time, it introduces a new balance between development and environmental responsibility.

In a period of strong recovery in the building sector, the top administrative court reminds that progress cannot be uncontrolled — it must be combined with respect for legality and environmental integrity.