At the 18th RED Meeting Point, key figures from Greece’s economic, legal, and investment sectors convened to discuss the challenges posed by institutional instability and regulatory unpredictability. Among the main speakers was George Alogoskoufis, Professor Emeritus of Economics at the University of Athens and former Minister of Finance, who underscored that both the global and Greek economies are at a critical crossroads, facing headwinds from slowing growth, structural inefficiencies, and policy volatility.
A Deep Dive into Legal and Economic Disruption
The discussion featured contributions from prominent participants including George Stasinos, President of the Technical Chamber of Greece (TEE); Dimitrios Pyrgakis, President of the Council of State (CoS); Konstantinos Karatsolis, partner at DTK Law Firm; Fotis Gioftsios, Vice President and CEO of Ten Brinke Hellas; and Yiannis Delikanakis, co-founder and CEO of investment firm Southrock.
Judge Pyrgakis emphasized that “institutional instability remains a persistent challenge for the legal system,” warning that frequent legislative changes are pushing stakeholders—property owners, engineers, and investors—toward what he described as a “state of nervous breakdown.”
TEE President Stasinos went further, calling the abolition of development incentives under the New Building Regulation (NOK) a direct blow to the country’s growth efforts: “Dozens of construction permits are in limbo. The removal of NOK incentives undermines Greece’s environmental strategy for sustainable building and energy upgrades.”
Rule-of-Law Concerns Undermining Investment Confidence
The lack of legal certainty dominated the conversation. Attorney Konstantinos Karatsolis stressed that “only a clear, stable, and predictable institutional framework can safeguard the interests of both citizens and investors.” He noted that many property owners are now facing abrupt building restrictions—even in cases where permit applications have already been filed or land has changed hands.
Investor Anxiety and the Risk of Capital Flight
On the investment front, speakers expressed deep concern over growing uncertainty. Yiannis Delikanakis remarked that “investors are increasingly hesitant to engage with properties outside urban plans or in zones with unclear legal status,” warning that this uncertainty raises investment risk and restricts capital flow.
Fotis Gioftsios added, “Greece is becoming prohibitively expensive for foreign investors. The lack of regulatory clarity creates an unstable and high-risk environment.” He highlighted the issue of legal delays, noting that it can take up to four years to resolve a legal appeal in Greece—compared to just 6–7 months in other EU countries. “The Greek investment brand is being seriously damaged,” he concluded.
A Growing Rift Between Institutions
Tensions between the TEE and the Council of State extended beyond regulatory matters into deeper institutional concerns. Stasinos accused the CoS of sluggish responsiveness, pointing out that “decisions are often issued 13 years after the fact—punishing citizens, not the state responsible for poor policy.” He called for fundamental constitutional principles such as equality and legal certainty to be better reflected in judicial rulings.
In response, Pyrgakis acknowledged past mistakes, citing the “original sin” of 2012, when the NOK extended beyond building codes to introduce urban planning measures—disrupting spatial planning and overstepping its intended scope.
Threat of Fiscal Shock from Compensation Claims
Concern was also raised over potential large-scale compensation claims, with many affected investments already in advanced stages of planning and permitting. “It’s not just the cost of permit fees,” Gioftsios explained. “Hundreds of thousands of euros have been spent on studies that are now worthless.” He warned that the Greek state may face multimillion-euro compensation payouts.
Retroactive Rulings and Democratic Implications
Particular criticism was directed at the retroactive application of CoS decisions. Delikanakis stressed that “if the state cannot guarantee stability in its decisions, this is no longer a legal issue—it becomes a matter of democratic governance.” He proposed the involvement of technical experts in judicial decision-making processes to ensure technically sound and fully substantiated rulings.
Calls were also made to adopt transitional periods and compensation mechanisms—similar to frameworks used in Italy and Spain—as part of a broader institutional reform.
A Clear Need for Political Intervention
All participants agreed that restoring predictability and institutional continuity is a political responsibility. Only through stable, transparent, and enforceable rules can Greece rebuild investor confidence and transition to a sustainable development model rooted in legal clarity and long-term planning.
