Greek municipalities face deep funding gaps and staffing crises

A study by the Greek Local Development and Self‑Government Company (EETAA) finds that the average annual operating cost of Greek municipalities in 2025 will be €7.5 billion, yet municipalities cover only about 28 % of that amount from their own revenues. The remaining 72 % comes from state subsidies, central autonomous resources and special programmes, creating a financing gap that worsens as energy costs and wages rise.

The report highlights severe organisational weaknesses: many municipal services are fragmented, numerous vacant posts exist and there is heavy reliance on contractors. Of the roughly 140,000 municipal employees, 47 % are permanent while 53 % are temporary or on limited‑term contracts, and there is a notable shortage of specialised scientific staff.

A new financing framework, linked to the Multi‑Year Fiscal Plan 2027‑2030 and upcoming EU budget cycles, will allocate funds only to municipalities that submit mature technical studies, detailed budgets and monitoring mechanisms. This stricter criteria may widen the gap between well‑staffed larger municipalities and smaller, understaffed ones. According to a joint study by the Central Union of Municipalities of Greece and EETAA, 165 of the 329 municipalities (about 50 %) generate less than 20 % of their regular revenues, limiting their ability to secure future funding.