The new study by the Hellenic Agency for Local Development and Local Government (EETAA) on the real cost of running municipalities marks an especially important step toward the institutional and financial strengthening of local government. For the first time, an attempt has been made to produce a complete, scientifically documented picture of the actual cost involved in carrying out municipal responsibilities, with the goal of shaping a fair and sustainable financing policy.
According to the study’s findings, the total operating cost of municipalities stands at 5.34 billion euros. For 2026, municipalities are receiving 2.9 billion euros in funding, leaving a funding gap of 2.44 billion euros. Of that amount, roughly 1.3 billion euros concerns the day-to-day operational needs of municipalities alone, while an additional 1.2 billion euros is needed for investment, maintenance, and upgrades to municipal infrastructure. These figures clearly outline the scale of local government’s real needs and point to the need for more rational and adequate funding.
The value of the study is not limited to recording financial data. It draws on constitutional requirements and the European Charter of Local Self-Government, underscoring the principle that every responsibility handed to municipalities must come with the financial and human resources needed to carry it out. In doing so, it strengthens the institutional standing of local government and lays the groundwork for meaningful reform.
A particularly positive aspect is the study’s methodology, which combines macroeconomic data, municipal financial figures, and qualitative research through interviews with elected officials and local government staff. As a result, its conclusions are not based on theoretical estimates but on the actual conditions municipal services deal with every day.
The study’s central message is that a strong local government system is a prerequisite for better services to citizens, more effective management of local affairs, and meaningful regional development. A documented picture of the real cost of running municipalities can serve as the foundation for a new relationship of trust between the state and local government, built on stable rules, adequate resources, and greater administrative efficiency.
This is, then, a study that does more than highlight the problems. It offers a complete framework of proposals capable of contributing to the modernization of Greek local government and to shaping a more functional and sustainable model of administration for the benefit of local communities.
Takis Avramidis is president of the Piraeus Municipal Council.
