Greek parliament advances local government code reforms on municipal debt and fee collection

The draft Local Government Code under consideration in the Greek parliament introduces a permanent installment scheme for municipal and regional debts. The scheme permits repayment in up to 48 monthly installments, with a minimum payment of €30. The number of installments will be tailored to each debtor’s income, and interest, surcharges and penalties can be reduced or waived for vulnerable households. Approval authority varies by debt size, ranging from local treasury officials to municipal or regional councils.

The same legislation also seeks to end the longstanding practice of linking municipal taxes and fees to electricity bills. It would give municipalities the option to collect these charges directly from citizens, pending a presidential decree and the establishment of the necessary digital and administrative infrastructure. The transition is not expected before 2028 and will involve the Central Union of Greek Municipalities, relevant ministries and energy market participants.