Greece Unitary state

Reforms

A large-scale territorial reform, called Kallikratis, has been underway in Greece since 1 January 2011.

An extensive reform changed the territorial organisation of Greece on 1 January 2011. Planned out prior to the crisis, the different legislative changes were introduced in order to step up decentralisation and to streamline local and regional public administrations. The number of municipalities thus went from 1 034 to 325. Furthermore, the 13 administrative regions were transformed into regional authorities (peripherias), which replaced the 54 existing prefectures.

As a result of this decentralization process, the new municipalities now carry greater weight, particularly at the administrative level, and have seen their competences broadened. In particular, they now play a pivotal role as far as local development is concerned. New financing mechanisms are planned and their political autonomy is rising. Moreover, the mandate of local elected representatives has been extended from four to five years.

Due to the public administration’s search for greater efficiency and the economic and financial crisis, local and regional Greek authorities experienced significant budget cuts. The number of civil servants is in decline, along with their salaries, and major cost-cutting programmes were set up. state transfers were scaled back which worsened already difficult financial situations, especially for municipalities with increased outlays of expenditure as a result of their new decentralised competences, not to mention expenses linked to their populations’ growing demands as a result of the social crisis hitting the country.

Local self-government in Greece:

While the reform led to additional powers given to local and regional Greek authorities, their financial situation has negatively impacted their autonomy under Article 9 of the European Charter of Local Self-government relating to the financial resources of local and regional authorities.

KEY REFORMS

• 1997: “Kapodistrias” territorial reform, under which many communities were merged to form new municipalities.
• 1 January 2011: Kallikratis territorial reform entered into force:
  • Reduction of the number of communities
  • Abolition of 54 prefectures
  • Replacement of 13 administrative regions with regional authorities
  • Decentralisation and new municipal powers
  • Increase in the term of office for local elected representatives
  • Cut in the number of civil servants and streamlining of local government
• Changes brought about by economic conditions:
  • Cut in transfers from central government
  • Sweeping cost-cutting programmes
  • Wage decreases and further staff cuts