Androulakis says Greek municipalities near bankruptcy, pledges five reforms at KEDE

Double crisis in local government

PASOK leader Nikos Androulakis, who leads the official opposition, addressed the annual ordinary congress of the Central Union of Municipalities of Greece (KEDE) in Kalamata on Thursday, 5 November 2026. The congress theme was "Strong Municipalities, Strong Local Communities, Strong Greece", and Androulakis used it to argue that local government is facing an institutional and economic crisis. He said this crisis threatens municipalities' ability to meet even the basic needs of local communities. He accused the government of treating local authorities as an executive mechanism for decisions taken at the centre, and he blamed the government's choices over the past seven years. According to him, powers over water, waste, energy and urban planning have been taken away from municipalities and regions.

Funding gap and the 2027 budget

Androulakis put the funding gap for municipalities' operational needs at 2.5 billion euros. He said the 2027 state budget provides for zero increase in resources for local government, even as costs rise for energy, payroll, water supply, cleaning, school maintenance and social services. He claimed that 60% of the revenues municipalities are entitled to is currently withheld. He further accused the government of not passing landfill fee revenue on to municipalities and of excluding them from the Resilience Fee. Throughout the speech he returned to the idea of dependence on the centre.

“In practice, they want you dependent on central power.”

Five commitments

Androulakis pledged to return statutory resources to local government in full, which he said would give municipalities economic autonomy. He promised to abolish the code passed under New Democracy and replace it with a new framework drafted through genuine dialogue, with a clear division of responsibilities between the central state, the regions and the municipalities. Any power transferred to local government would come with the matching resources and staff. He also pledged a Regional Resilience Fund to finance flood-control works, wildfire protection and disaster prevention. Further pledges included an institutional guarantee that KEDE's consenting opinion is required for critical legislation, and an electoral system that ensures municipal authorities reflect the majority of local communities. He said these changes would overturn the current model of administration after the next national elections, without giving a date.

“There cannot be a strong Greece without strong local government and without integrated regional development.”

Nursery rules and the minister

Androulakis criticised a recent ministerial decision on operating nurseries, which he said gives private structures more favourable terms without matching changes for municipal nurseries. Addressing the minister directly, he asked what the government intended and whether it wanted to grant more privileges to private providers at the expense of municipal social services. He argued that those services serve the poorer and more vulnerable Greeks and that they reduce inequalities. He warned that weakening them would deepen the marginalisation of families who depend on them. He said he wanted a real answer from the minister on these questions.