KEDE warns of protests over 2027 municipal funding cuts

The Central Union of Municipalities of Greece (KEDE) has warned of potential protests if the 2027 draft state budget does not include a significant increase in funding for local authorities. KEDE President Lazaros Kyrizoglou reported that total transfers to local government organizations are projected to decrease by approximately €670 million, falling from €6.575 billion in 2026 to €5.905 billion in 2027.

According to KEDE, the projected reduction in funding contradicts improving fiscal indicators, including a forecasted 2.3% economic growth and a €2.149 billion increase in tax revenues. The union noted that while statutory resources for municipalities amount to roughly €9.67 billion, their actual operational costs reach €5.5 billion. KEDE is calling for a specific readjustment of Central Autonomous Resources (KAP) before the final budget is submitted to Parliament in November.

Additionally, KEDE leadership met with the Minister of Environment and Energy, Stavros Papastavrou, to discuss reducing electricity costs for municipalities from €0.24 to €0.10 per kilowatt-hour.