Cash-strapped municipalities to hike fees

Many of Attica’s new municipal authorities are reportedly planning significant hikes in municipal fees in order to manage and balance their budgets. 

The authorities have their backs up against the wall due to the accumulation of fines for the poor performance of municipalities in recycling which has burdened landfills, and the increase in the salaries of municipal employees from the beginning of the year.

Sources have told Kathimerini that there are currently no thoughts at the Municipality of Athens to increase municipal fees.

At the same time, the Central Union of Municipalities of Greece (KEDE) plans to appeal to the Council of State and the Regional Union of Municipalities (PED) over the constitutionality of a recent move by the Finance Ministry to order a retention of a percentage of Central Autonomous Resources (ΚAP) for the debts of municipalities. 

Municipalities are required by law to submit balanced budgets, so any increase in expenditure should be accompanied by an increase in revenue.

Most municipalities in Attica, including the Municipality of Athens, have single-digit recycling rates, which means that a large proportion of their waste ends up in the Fyli landfill.

According to the law, from the beginning of the year, municipalities will pay a fine of 35 euros for every ton of waste buried in 2024.

In fact, the fine will be imposed retroactively also for the years 2022 and 2023.

The fine will increase each year in order to pressure municipalities to implement recycling systems.

Meanwhile the Municipality of Hania on the island of Crete is also set to increase municipal fees. The mayor of Hania, Panagiotis Simandirakis, said the reduction in municipal revenue due to the implementation of central government decisions is expected to reach 3.5 million euros for next year.