With municipal finances under severe strain and a genuine decentralisation of power needed, the Central Union of Municipalities of Greece (KEDE) presented its new list of demands after concluding its annual conference in Kalamata, held from 5 to 7 November 2026.
According to a KEDE study, municipalities’ annual operating costs amount to €5.4bn, while funding through the Central Autonomous Resources (KAPs) stands at €3.04bn, leaving a funding gap of €2.36bn.
The union is calling for an immediate adjustment to KAPs to cover municipalities’ actual operating needs, with 7% of net state budget revenues to be allocated gradually over the next five years and a long-term target of 8% of GDP.
Funding and staffing
Other key financial demands include reducing energy costs, returning resources to municipalities, strengthening school infrastructure, supporting municipal water and sewerage utilities, and creating a new development programme for local infrastructure.
Staff shortages are a particular concern, with an estimated 35,000 vacancies in municipalities. KEDE is calling for a three-year programme to recruit permanent staff, simpler procedures through ASEP and special incentives to attract staff to small, mountainous and island municipalities.
On institutional issues, ahead of the constitutional revision, it is seeking to enshrine the principle that every new responsibility must be accompanied by the necessary resources, promote fiscal decentralisation, abolish the Decentralised Administrations and establish metropolitan local government in Athens and Thessaloniki.
Achievements and a demand
KEDE recognises as significant achievements of the previous period the adoption of the new Local Government Code, the creation of 9,000 posts for social care services, the allocation to municipalities of 3% of the Green Fund’s reserves, and emergency funding of €140m for municipalities and €240m for municipal water and sewerage utilities.
However, the central message from Kalamata remains clear: local government is calling on the government to take concrete decisions, provide adequate funding and set a clear timetable so that municipalities can meet the needs of local communities.