Athens Mayor warns of 2.5 billion euro deficit for Greek municipalities

Athens Mayor Haris Doukas has warned of a 2.5 billion euro funding gap facing Greek municipalities, stating that 10% of local authorities may be unable to finalize their budgets. Speaking ahead of the Central Union of Municipalities of Greece (KEDE) conference, Doukas highlighted that while municipalities require 5.35 billion euros to cover operational needs and infrastructure maintenance, available resources fall significantly short.

The deficit includes 1.3 billion euros for operational expenses and 1.2 billion euros for infrastructure upkeep. Doukas criticized the government for underfunding local authorities, noting that state funding for municipalities in Greece accounts for only 3.4% of the national budget, compared to much higher percentages in countries like Italy (29%), France (20%), and Spain (15%).

Furthermore, Doukas warned that the financial strain is compounded by rising costs, including a projected 7% to 8% increase in payroll and a 10% rise in energy costs. He also alleged that recent government measures are undermining the institutional autonomy of local governments.