Kyriakos Mitsotakis, Prime Minister of Greece, is throwing himself into the effort to rally New Democracy’s support across the country, embarking on a packed schedule of regional visits while also seeking to resolve disputes that have emerged in recent months and have been exacerbated by international inflationary pressures. That was the approach he took yesterday in Kalamata, where he toured the wider region from morning until evening. Serres is next on Sunday, and further visits are planned, as the campaign to consolidate support will continue in parallel with the government’s work.

Mr Mitsotakis’s appearance in Kalamata yesterday was not merely a ceremonial one, nor did the prime minister limit himself to observing new projects being inaugurated or progressing and making a difference to local communities. Recognising the demands of local government and noting that even New Democracy-affiliated local officials were voicing complaints about a lack of resources – a situation evidently aggravated by international pressures arising from the war – Mr Mitsotakis attended the conference of the Central Union of Municipalities of Greece (KEDE) with a package of more than €500 million in direct funding. He also announced plans for talks with the Public Power Corporation (PPC) on debt arrangements and the introduction of a special electricity tariff for local authorities.

Addressing the KEDE conference, Mr Mitsotakis announced that €300 million from the Hellenic Recycling Agency (EOAN) would be transferred to municipalities immediately, allowing them to allocate the funds to recycling projects in their areas. He also announced an immediate injection of €240 million during November to repay overdue municipal debts to energy suppliers. In other words, the funding boost for municipalities exceeds €500 million. At the same time, the annual state grant for the maintenance of school buildings will be doubled, while the programme for local road improvements will gradually receive a further €200 million, to be financed through a special levy on fuel once international prices have stabilised.

In addition, to boost municipal revenues, the government is increasing the accommodation tax paid directly to local authorities by businesses in the hospitality and tourism sectors from 0.75% to 1%. The government has also reached an understanding with the Public Power Corporation on an additional debt settlement covering amounts of up to €60 million, alongside the previously announced special electricity tariff for municipalities.

Warning of financial suffocation

The prime minister’s speech was preceded by a stark warning from KEDE president Lazaros Kyrizoglou, who is affiliated with New Democracy, about the looming financial squeeze on municipalities as state funding is effectively eroded. Specifically, the KEDE president highlighted a funding gap of around €2.5 billion facing municipalities, pointing out that rising costs for energy, fuel, wages and the operation of municipal services had significantly reduced the real value of state funding. Interior Minister Theodoros Livanios had also spoken before the prime minister, announcing the emergency funding and defending the government’s policy of supporting local authorities.

New Democracy, after all, has considerable influence among municipalities, and mayors often act as “multipliers” of the government’s message. It was therefore crucial for the Maximos Mansion, as the country moves towards the ballot box, to avoid an active dispute with KEDE – let alone protests – as Mr Kyrizoglou appeared to suggest in his speech. He also has to manage a number of mayors with roots in PASOK within the union, led by Athens Mayor Haris Doukas, as well as the political re-emergence of Alexis Tsipras through Giorgos Ioakeimides, the party’s candidate for regional governor of Attica and current head of the Hellenic Police’s local government department.