Abstract
<jats:p>The article evaluates the economic efficiency of municipal entities in remote islands of the Hellenic Republic during 2020–2025. Based on official Greek and European statistical sources, the CAP Strategic Plan 2023–2027, local government legislation (Kallikratis and Kleisthenis reforms), and peer-reviewed research, the study examines the revenue and expenditure structure of island municipalities, structural constraints of «insularity», COVID-19 impacts on municipal finances, and post-pandemic recovery mechanisms. A typology of five municipal categories is developed according to financial autonomy levels. The study concludes that the current inter-governmental transfer system systematically underestimates the actual needs of island municipalities due to the absence of an «island surcharge coefficient» in allocation formulas.</jats:p>