Greece’s development playbook: new building code, energy role and investment security

Greece is embarking on a major overhaul of its urban planning and building regulations with the introduction of a unified Town Planning Code aimed at ending decades of fragmented and contradictory rules that have hindered investment and transparency. According to Environment and Energy Minister Stavros Papastavrou, the reform will consolidate currently scattered regulations into a simplified, digital, transparent framework that gives clear rights to citizens and investors — a significant step toward legal certainty and economic predictability.

Ending the ‘Urban Planning Maze’

Papastavrou and his ministry say the current system is plagued by overlapping or conflicting provisions that have created delays, uncertainty and legal disputes over building permits. The new Code is designed to replace this patchwork with a single, accessible set of rules guiding zoning, building permits and land use. In recent comments on national TV, the minister stressed that an organized, transparent digital regime will allow citizens and investors alike to know definitively what is permitted and what isn’t, which is crucial for economic activity.

The reforms build on long-standing government plans to modernize building permit services and improve the efficiency of urban planning offices, including transferring responsibilities like construction licensing into centralized digital platforms.

Investment Security and Environmental Protection

A central thrust of the reform is investment security: a stable and predictable regulatory environment significantly lowers the risk for both domestic and foreign long-term projects. This is especially relevant as Greece seeks to attract more infrastructure, tourism, logistics, and energy development capital. Papastavrou underscored that the Code ties directly into efforts to protect the environment and ensure lawful development, prompting authorities, for example, to suspend construction at the Milos hotel site pending Supreme Court review — demonstrating the government’s willingness to enforce environmental and planning law while reforming the system.

The push toward digital, clear planning aligns with broader European trends to streamline administrative processes, reduce bureaucratic burden, and promote smart, climate-neutral urban investments. For instance, the European Investment Bank has signed advisory agreements to help Greek municipalities plan sustainable urban development and integrate climate priorities into local projects — underscoring the importance of strategic planning in unlocking green and resilient investment pipelines.

Greece’s Geopolitical and Energy Position

Beyond urban planning reform, Papastavrou frames Greece’s role in the EU’s strategic reshaping of energy supply as geopolitically significant. Greece has positioned itself as a key transit and infrastructure hub linking European markets with diverse energy sources, an increasingly vital role as the EU implements rules to phase out dependence on Russian natural gas. Under new European regulations, gas that transits via routes such as TurkStream is considered Russian unless proven otherwise, a change Greece supported as strengthening transparency and market clarity.

In this context, the minister described energy cooperation as a “bridge between Europe and the United States,” highlighting U.S. liquefied natural gas (LNG) and related infrastructure as key partners in diversifying supply — a major strategic aim of the EU’s REPowerEU agenda.

Planning, Infrastructure and Global Trade Corridors

Greece’s upgraded planning framework and improved legal clarity could also buttress its role in emerging international trade and energy corridors, such as the India–Middle East–Europe Corridor (IMEC), which seeks to facilitate economic integration across wide regions. Greek officials have noted that Greece’s geographic position and stable policy environment make it an attractive entry point for global investors eyeing this corridor.

Towards a Unified Regulatory and Investment Landscape

Greece’s dual push — urban planning reform and strategic energy positioning — reflects a broader ambition to transform from a country burdened by regulatory uncertainty into a predictable, competitive hub for capital, infrastructure, and international cooperation. The effectiveness of the new Town Planning Code in curbing legal challenges, simplifying processes and fostering investment will be watched closely both domestically and abroad, as Greece strives to balance sustainable development, environmental stewardship and geopolitical economic opportunity.

Source: pagenews.gr