Vote on new Land Law postponed
Parties remain divided over pricing caps, procedures for reclassifying rural land, timeframes for urban development, additional restrictions for protected areas, and legal validity of the law.
The parliamentary vote on amendments to the Land Law, which would allow for the simplified reclassification of rural land into urban land, has been postponed.
The decision came following a request from the far-right Chega party, which argued that more time was needed to analyze the various proposals put forward by different parties.
By postponing the vote, Chega has ensured that its motion of censure against PM Montenegro—linked to his family company’s potential gain from land law changes—takes priority in debate.
According to Bloco de Esquerda MP Marisa Matias, the land law vote is now likely to be pushed to next week or even later.
The vote is now expected to take place next week.
Key Proposals Under Consideration
The amendments being debated include proposals from the Socialist Party (PS) and the Social Democratic Party (PSD), which hold the highest likelihood of approval given the PSD’s commitment to accommodating PS demands to ensure the bill’s passage.
Other proposals have been submitted by the Left Bloc (BE), ecosocialists Livre, Liberal Initiative (IL), and Chega.
Pricing Controversy
One of the most contentious issues in the proposed law is the concept of “moderate value,” introduced by the government under the amendments to the Legal Regime of Territorial Management Instruments (RJIGT).
Critics argue that this provision could allow properties to be sold above market prices.
The PS insists that this term be eliminated and replaced with the existing definitions of “affordable rent” and “controlled-cost housing.”
The PSD has aligned with this stance, proposing that municipalities be allowed to reclassify rural land for urban use, provided at least 70% of the total construction area is designated for public housing, affordable rental housing, or controlled-cost housing.
Chega, on the other hand, seeks to redefine “moderate value” based on the median house sale prices in each municipality.
Meanwhile, the Liberal Initiative proposes lifting all restrictions on housing types so that municipalities have full discretion in land reclassification.
Procedural Disputes
The PS and PSD differ on the procedural requirements for reclassifying rural land.
The PS advocates for restoring certain oversight mechanisms removed by the current government. Specifically, reclassification should only be permitted where there is a proven lack of available urban land, an assessment of the proposed urban development's impact, and an economic feasibility analysis.
Conversely, the PSD proposes fewer bureaucratic hurdles, requiring only an evaluation of the urban impact and the projected costs of the developments.
Both parties agree that reclassified land must be contiguous with existing urban areas.
For private land, the PS proposes that reclassification be subject to a non-binding opinion from the regional coordination and development commission to ensure compliance with legal and territorial planning regulations.
The PSD supports this measure.
Timeframes for Urban Development
Under the current law, urbanization and construction projects must be completed within five years, extendable by at least half of the initial period (over seven years total).
The PS proposes reducing this timeframe to three years, with an extension of up to half the original term (four and a half years).
The PSD suggests a four-year limit, extendable by one year, for urbanization projects, without specifying a timeline for building construction.
Protected Areas and Environmental Concerns
Regarding land within the National Ecological Reserve (REN), the PS proposes adding further exceptions, including strategic infiltration areas, groundwater recharge zones, areas with high soil erosion risk, and lands prone to slope instability.
The PSD does not support these additional restrictions but instead advocates implementing necessary measures to preserve protected areas based on technical evaluations.
Livre insists that any land reclassification within these areas should be backed by detailed environmental, social, and economic impact assessments.
The Left Bloc takes a stricter stance, proposing a complete ban on reclassifying land within sensitive areas of the REN or the National Agricultural Reserve (RAN).
Chega, on the other hand, proposes a provision allowing reclassification in REN or RAN areas, provided a detailed technical report and binding expert opinions justify the decision.
Legal Duration and Future Amendments
The PS demands a four-year validity period for the law, subject to extension based on an impact assessment. The PSD does not support this limitation.
The decree-law (117/2024), which amends the RJIGT to facilitate rural-to-urban land conversion for housing, came into effect on January 29.
However, the parliamentary Committee on Economy, Public Works, and Housing had scheduled a vote on proposed amendments for this Wednesday.
Due to Chega’s request, which is binding, the vote has been postponed and is now expected to take place next week.
The decree-law remained in force following a parliamentary review requested by BE, PCP, Livre, and PAN.
Attempts to repeal the decree were rejected by the votes of PSD, Chega, CDS-PP, IL, and an independent MP, with PS abstaining and the proponent parties, along with four Socialist MPs, voting in favor of annulment.
Source: Público