The Minister of the Interior, Mr. Konstantinos Ioannou, knocked on the door of the Minister of Finance, Mr. Makis Keravnos, in order to prevent measures from being taken by the Municipalities, which had warned that they would close the shutters, in case the government did not increase the state sponsorship to the Municipalities, but it was already too late.
Finally, and despite the improved proposal, today the employees of the Municipalities are on a three-hour work stoppage between 9-12 and it is considered that consultations will follow in order to resolve the dispute.
The letter-proposal, which de facto turns out to be a desperate attempt to save what is being saved, is dated July 31, 2026 with the indication "urgent". However, the Municipalities consider the revised proposal a positive step, which, however, is far from leading to their smooth operation.
The letter-proposal under the title "Revision of the amount of annual state grant to the Municipalities" describes the analysis of the state grant, which rises from the current €117 million to €156,118,892 next year. It is noted that the ministry's initial proposal provided for an increase in the state grant to €147,888,000.
The table is as follows:
Implementation Stage Calculation
50% of the cumulative increase in net primary expenditure for the years 2024 (2.7%), 2025 (6%) and 2026 (5%) 6,85%
Implementation of the above increase in the amount of €117m. €8.014.500
117 million + increase 2024-2026 €125.014.500
Loss of revenue from a licensing sector €12.000.000
Responsibility for the maintenance of roads of primary importance €15.000.000
New Base €152.014.500
50% of the increase in net primary expenditure for 2027 (5.4%) 2,7%
Application of the above increase on the amount resulting from the above – Final Sponsorship for 2027 €156.118.892
The minister informs Mr. Vyras about the new data that emerged after a new consultation he had with the Minister of Finance regarding the method of calculating the state sponsorship to the Municipalities for 2027.
Mr. Ioannou also records the following regarding the revised proposal:
(a) Initially, the increase corresponding to 50% of the cumulative change in net primary expenditure for the years 2024, 2025 and 2026, as set out in the Medium-Term Fiscal Structural Policy Plan (BMSP), will be calculated. This increase will be applied to the state grant of €117 million provided for in article 94 of the Municipalities Law (Law 52(I)/2022).
(b) Subsequently, the grant of €12 million will be added to the resulting amount. against the loss of revenue from the licensing of the development and the sponsorship of €15 million. for the maintenance of roads of primary importance.
(c) On the total amount that will result, the increase corresponding to 50% of the change in net primary expenditure for the year 2027, as determined in the RBI, will be applied.
The minister informs Mr. Vyras that the increase in the state sponsorship will be paid for the first time in the year 2027 and will then be paid every three years, on the basis of the cumulative percentage that will arise during the period in question, as detailed in my aforementioned letters.
And the minister concludes:
In view of the above, I ask that I have the agreement of the Union of Municipalities and I hope that this agreement will be the final settlement of the issue, so that the relevant legislative regulations can be promoted quickly.
