Municipalities get less state aid than EU peers

Greek municipalities receive less state funding than their counterparts in the European Union, according to the results of a study whose results were made public Tuesday at a seminar organized by KEDE, the union representing Greece’s local authorities.

In the other 27 EU states, municipal spending accounts on average for 16.7 percent of gross domestic product and 34 percent of total public spending compared to 3.1 percent of GDP and 5.9 percent of overall public spending in Greece.

The results of the study were presented by Frederic Vallier, the secretary-general of the Council of European Municipalities and Regions, which carried out the study. But he did not propose the Greek government boost subsidies to local authorities, noting that this would not encourage municipalities to take a more responsible approach to financial management. He suggested municipalities be allowed to raise their own revenue through taxes.