Ioannina Mayor warns of financial strain on Greek municipalities

Ioannina Mayor Thomas Begas has highlighted severe financial and institutional challenges facing Greek local authorities. During a Municipal Council meeting, Begas reported on recent discussions held by the Central Union of Municipalities of Greece (KEDE).

A primary concern involves the new Local Government Code, specifically Article 376, which restricts the ability of municipalities to transfer resources to cover essential services like sanitation and street lighting. This restriction poses risks to the balanced budgeting of many municipalities, particularly in regional areas.

KEDE has unanimously decided to request legislative intervention from the Ministry of Interior. The organization is seeking a suspension of these problematic provisions and the maintenance of the previous framework for the preparation of 2027 municipal budgets. Other critical issues raised include the need for permanent national funding for childcare centers following the expiration of European funding, as well as rising energy costs for local governments.