Greece implements new Local Government Code

Greece's new Local Government Code, established under Law 5314/2026, introduces significant regulatory changes for municipal services and local authorities.

For Municipal Water and Sewerage Companies (DEYA), unpaid water bills remaining unsettled for more than six months will now incur a 50% penalty. The law allows for the transfer of debt collection to the Independent Authority for Public Revenue (AADE), which may lead to enforcement measures such as bank account seizures. However, the law does not mandate an automatic tax ID (AFM) block. Debtors may apply for repayment plans of up to 60 installments over five years.

The Ministry of Interior held an online briefing for DEYA officials to discuss the new institutional framework, financial management, and public procurement processes. Discussions addressed critical operational issues that may require further legislative amendments or interpretative circulars.

Additionally, the code modifies the operations of the Municipal Police. New regulations establish uniform criteria for exercising authority based on permanent population and staffing levels. The Municipal Police will gain expanded oversight in traffic enforcement, including the regulation of bicycles, motorcycles, and three-wheeled vehicles, as well as monitoring illegal parking at electric vehicle charging stations.