Working group proposes that real estate expropriation for security reasons be assigned to Ministry of Defence

Working group proposes that real estate expropriation for security reasons be assigned to Ministry of Defence

On 10 December 2024, the Finnish Ministry of Defence set up a project to examine the need to amend the Act on the Expropriation of Immovable Property and Special Rights to Ensure National Security and related legislation. The objective was to draw an overview of how the current legislation should be amended to ensure fair and effective safeguarding of real estate critical to national security.

The current Act on the Expropriation of Immovable Property and Special Rights to Ensure National Security enables the expropriation of real estate to safeguard Finland's security, security of supply and critical infrastructure. The working group examining the need to amend the expropriation legislation found that it has been difficult to apply the current act as each ministry is responsible for granting expropriation permits in their respective branch of government.

The working group proposes that only the Ministry of Defence would grant expropriation permits. It has the widest experience of assessing real-estate-related threats, and it is already responsible for supervising foreign real estate ownership and for preparing proposals for the state's use of its pre-emption right, both tasks being closely related to expropriation for reasons of security. The group further argues that the Ministry of Defence, in collaboration with other branches of government, should be responsible for maintaining a situational picture of real estate that pose a potential security threat.

The working group also proposes that the right to obtain information under the current act be extended and updated so that other branches of government could issue statements in matters concerning expropriation. The group maintains that appropriate sanctions for violating the prohibition of measures under the act should be introduced and that a prohibition of measures should be issued as soon as a potential need for expropriation is identified. It should be possible to abandon voluntary transaction as a primary objective in urgent cases and to depart from the obligation to consult other authorities during the permit procedure if the matter is urgent or if the consultation is deemed not necessary for resolving the matter. The relevant authorities should also have wider possibilties to take temporary possession of real estate.

The working group proposes that compensation for expropriation for reasons of security be aligned with compensation payable under the Act on the Expropriation of Immoveable Property and Special Rights. Funding for expropriation for reasons of security should be pooled and taken into account in budgets.

The project implemented the Government Programme's objectives to examine possibilities to engage in more effective ex post facto intervention and control in respect of assets central to the security of society and security of supply.

The report is a unanimomus view of the working group. The group had representatives from the Ministry of Defence, the Ministry of Agriculture and Forestry, the Ministry of Transport and Communications, the Ministry of Justice, the Ministry of the Interior, the Ministry for Foreign Affairs, the Ministry of Economic Affairs and Employment, Defence Command Finland, the Finnish Border Guard, the National Land Survey of Finland, the Finnish Security and Intelligence Service and the National Bureau of Investigation.

Link to the working group report (in Finnish)

Inquiries: Kosti Honkanen, Senior Specialist for Legal Affairs, Chair of the project, Ministry of Defence, tel. +358 295 140 607, and Sami Heikkilä, Senior Specialist, Vice-Chair of the project, Ministry of Defence, tel. +358 295 140 452.