UNION OF MUNICIPALITIES - DESCENDS ON A THREE-HOUR PROTEST AGAINST THE STATE SPONSORSHIP ON 3 AUGUST - Filenews 24/7
"The government proposal does not primarily affect the Municipalities but affects the citizens. Insufficient funding limits the ability of Municipalities to offer quality services, to proceed with new projects and to substantially improve the daily life and quality of life of citizens," the Union of Municipalities said in a statement.
It is added that "when the central state does not cover the real cost of the responsibilities it transfers to Local Government, the options left are to reduce services and projects or to impose new and increased taxes and fees on citizens".
As noted, the Union of Municipalities "will not accept the transfer of the cost of the reform to the citizens". At the same time, it is added that the government proposal "includes data and allegations that do not reflect the true picture of the funding of Local Government and create false impressions in society".
In particular, it is stated that the claim that the state sponsorship is being doubled does not correspond to the real data. According to the announcement, the comparison is made with the amount of €70.8 million, which had been frozen for years due to the cuts of the economic crisis, and not with the actual basis before the cuts. According to the Ministry's own data, the state grant in 2010 amounted to €104.8 million.
While state revenues increased by 132% in the period 2010-2024, the state grant to the Municipalities increases by only 42% by 2026, the Union adds, noting that the request for an inflationary adjustment of the sponsorship is still not met.
The proposal to return only 50% of the increase in net primary expenditure of the state, instead of linking the sponsorship to the increase in state revenues, does not ensure fair and sustainable financing, the announcement continues. "Even more problematic" is the provision for the adjustment of the grant every three years, at a time when the Municipalities are called upon every year to cover increasing and inelastic costs for energy, fuel, services, infrastructure and personnel.
At the same time, it is noted that the funding for the maintenance of roads of primary importance and the compensation for the loss of revenue from the licensing of the development do not constitute an increase in the basic state sponsorship, but a coverage of obligations arising from the transfer of responsibilities in the context of the reform.
It is also stated that the inadequate costing does not only concern the former Communities that joined the new Municipalities, but also the mergers of Municipalities, to which responsibilities, obligations, deficits and operating costs were transferred without providing for the corresponding resources.
"The Union of Municipalities supports the reform of Local Government. In several cases, mergers have proven successful and beneficial, creating synergies, better services, new projects and more potential for development for entire local communities," it is noted. However, it is underlined that the lack of adequate funding cancels out these benefits in practice and does not allow the Municipalities to offer citizens what they have already proven to be able to offer.
The savings to date resulting from the reform seem to work to the benefit of the central state, while the financial burden is transferred to the Local Government and, ultimately, to society, the Union states in its announcement, adding that this approach undermines the financial autonomy of the Municipalities and is contrary to the principles of the European Charter of Local Self-Government, which provides that local authorities must have sufficient financial resources, commensurate with their responsibilities and responsibilities.
"The struggle of the Municipalities is not a struggle for administrative structures or operating costs. It is a struggle so that the citizens do not pay the cost of a reform that the state itself decided and to maintain the services, projects and infrastructure to which they are entitled. The viability of the Municipalities is a prerequisite for quality services, development and substantial improvement of the daily lives of citizens", it is added.
"Ensuring it is the responsibility of the State," the announcement notes, with the Union of Municipalities noting that it will present in detail the positions and data documenting the above findings at a press conference, the details of which will be announced within the next few days.
