“No” from the CoE to the municipalities for the cash

The compulsory presentation of local government accounts with a special Bank of Greece account does not eliminate or cancel the fiscal independence of local authorities, according to the main plenary session of the State Council, which considered that the two relevant decisions of the Vice Minister were constitutional .

The Plenary Session of the Supreme Court of Cassation, rejecting the requests for annulment presented by KEDE and 10 municipalities throughout the country, approved the decisions of the Ministry of Finance, arguing that they do not violate the provisions of the Constitution. This is because, as he states, “this is a fiscal measure that, insofar as it is applied to local authorities, such as General Government agencies, prevents their free management of their cash resources, but does not cause them property damage and does not prevent the execution of your budget, as detailed in the previous decisions. “

According to state councilors, “the legislator chose the mandatory collection and management of cash from the General Government Organizations in the Bank of Greece, as the main one among those disputed in this case, as the appropriate measure for the Minister of Finance. Constitution and the law, the responsibility to control the amount of the public deficit and public debt, to obtain a complete and clear picture of the liquidity and cash needs of the whole n General government agencies, whose financial data are taken into account, from in accordance with the requirements of EU legislation, to determine the amount of the public deficit and public debt, in order to improve the efficiency in the use of available liquidity, achieve reliable forecasts for cash flows throughout the General Government and avoid unnecessary loans ”.