The Government recently approved Draft Law No. 58/XVII/1, which aims to grant Municipal Assemblies decision-making powers over expropriations for works and projects of local initiative.
This may cover a wide range of urban infrastructure and facilities, from the construction or expansion of road and rail networks to the installation or improvement of sanitation and energy networks, as well as the development of new public housing, schools, childcare facilities or health centers.
This power granted by law to Municipal Councils and Parish Councils, to deprive a private party of ownership of a given asset — typically a plot of land — must comply with three fundamental requirements:
- Public interest: the project must clearly benefit the local community and not merely private interests;
- Fair compensation: the owner must receive an amount that reflects the real value of the asset (market value), so as not to be left worse off financially;
- Legality: the procedure must comply with the Expropriation Code and be grounded in duly approved municipal plans.
If this legislative amendment is ultimately passed, Municipal Assemblies will have the power to issue declarations of public interest, in respect of the expropriation of real estate and related rights, as well as the establishment of administrative easements over the property to be expropriated.
In practice, the decision will be taken by the body of municipal deputies, upon a proposal from the Municipal Council, and that act will constitute the declaration of public interest.
In this regard, it is worth noting that such a measure is likely to raise legitimate questions about the limits of political power and the protection of citizens’ fundamental rights — in particular, the right to property.
Let us consider the case of owners of rural land – a common sight in the countryside, but also on the outskirts of towns: they are, in all likelihood, one of the most vulnerable groups and, possibly, among those most affected by this measure, especially in light of the recent amendments to the Legal Framework for Territorial Management Instruments (RJIGT). Those amendments make it possible, upon certain criteria, to reclassify rural land as urban land, for public housing purposes.
This means that an individual who owns land in areas that are, or may in future be, subject to town planning or covered by local development plans may find their property subject to decisions that significantly increase the value of the land, but also substantially heighten the risk of compulsory expropriation, based on a locally declared public interest.
In this context, and given the legal and social changes that lie ahead, we set out below some of the recommendations and legal considerations that we believe are essential to bear in mind, and which citizens and investors should take into account should they be affected by it:
1 – Ongoing legal support, through continuous and rigorous analysis and monitoring of legislation, municipal projects and the technical criteria associated with them;
2 – Oversight of municipal plans, by means of close and specialized monitoring of any changes that may arise, anticipating developments that could lead to expropriation requests and subsequent unfavorable offers or negotiations;
3 – Participation in public debate, by using public consultation mechanisms, in which citizens have both the right and the civic duty to take part and influence decision-making;
4 – Prior impact assessment, allowing potentially affected citizens to request independent valuations, capable of estimating the real value of the land and any property damage in the event of expropriation.
It is therefore absolutely essential to ensure that these mechanisms are properly understood, utilised and duly respected, so as to provide ordinary citizens with clear guarantees, enhanced legal protection and robust technical criteria.
Only in this way can decisions concerning the ownership of a given asset be prevented from depending on short-term political choices, with long-lasting effects on personal assets and a gradual erosion of confidence in the rule of law.
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