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10.07.2026
ECONOMY
12:28

"We are forced to raise taxes": Municipalities are at their limit regarding state subsidies, they warn, calling for protests

They are waiting for the government's final position and making decisions
ALPHANEWSLIVE


Municipalities are at their limit regarding state funding, and the Union of Municipalities has decided to hold a three-hour protest on August 3, if the Ministry of the Interior’s proposal is not satisfactory.

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Speaking on the Alpha News program, the Association’s President, Andreas Vyras, emphasized that “we cannot perform our basic functions as municipalities.”

As he explained, the state subsidy is a fixed amount, a fact that is at odds with the rising costs and inflation of recent years.

“I don’t think there’s anywhere else where the state subsidy is a fixed amount. Every year it erodes due to inflation, and with the rising cost of living in recent years, we’ve lost about 20–25% of our purchasing power. The cost of living in recent years has been crushing; municipalities are forced to raise taxes, and everyone blames ‘the bad mayors, the bad municipalities.’”

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During today’s meeting, attended by all the mayors, an update was provided on the negotiations with the government regarding the municipalities’ financial autonomy and waste management.

Since 2021, as Mr. Vyras noted, there has been no adjustment to state subsidies based on economic conditions, with the government’s position being that “while we are discussing some link to a key economic indicator, we are not discussing any increases—that from now on, increases and adjustments will begin— a move that the municipalities oppose.

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At the same time, waste management—specifically the landfill tax—is a burning issue.

“We’re going to burden people with a tax for which they are not responsible,”

As Mr. Vyras added, investments totaling approximately 160 million euros will be made in Kosia and Pentakomo, though it remains unclear who will bear this cost.

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“If the government’s position is that the Local Authority will cover the costs, citizens must be informed that garbage collection fees will rise from 200 euros per year to 400–500 euros per year, and the Local Authority is not responsible.”

The Union of Municipalities is awaiting specific proposals and positions from the government, with the minister having “promised” that he will submit his final position by Friday, June 17.

If the government’s position satisfies them, they will make new decisions; otherwise, they will hold the three-hour peaceful protest outside each municipality on August 3, as they have announced.

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According to Mr. Vyras, the protest is a first step, and if there is no appropriate response from the government, “these measures will be escalated.”

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