Municipal leaders meet in Kalamata to demand 2.7 billion euros in funding

The annual convention of the Central Union of Municipalities of Greece opens in Kalamata on Thursday and runs through Saturday. The gathering brings local government leaders together as new Local Autonomy Code rules take effect and parliament debates the 2027 state budget.

KEDHE says municipalities face a serious funding gap. A study prepared with the Hellenic Company for Local Development and Self-Government puts real operating costs at about 5.35 billion euros, while municipalities receive roughly 3 billion euros.

“The real operating cost of municipalities amounts to approximately 5.35 billion euros, while they receive approximately 3 billion euros.”

The union’s Administrative Council decided on October 22 to demand an adjustment of Central Autonomous Resources. It warned of protest mobilizations if the government does not respond.

Energy costs are another priority. President Kyrizoglou has proposed cutting the electricity price for municipalities to 0.10 euros per kilowatt-hour, down from about 0.24 euros today, which could save about 240 million euros annually.

The 2027 budget draft also draws criticism. Despite higher tax revenues, total transfers to local authorities are projected to fall by about 670 million euros, from 6.575 billion euros in 2026 to 5.905 billion euros next year.

Municipalities are also demanding the return of 311.47 million euros collected from landfill fees through February 2025 to fund waste management projects.