Municipal Debts to the State and Banks
October 26, 2025
Municipalities owe approximately 600 million euros to the state and banks. This, along with the actuarial deficit, poses a significant problem that could affect citizens. State grants for municipalities will total 339 million euros, but overdue debts will need to be offset. The number of municipalities has been reduced to 20, aiming to improve financial management. The local government reform was implemented in July 2024.