Larnaca, Cyprus. Municipalities across Cyprus warned on Monday that residents could face higher local taxes or reduced services unless the government increases state funding, following a three-hour protest outside Larnaca Municipal Hall.
Funding pressure
Larnaca mayor and Union of Cyprus Municipalities president Andreas Vyras said municipalities could not continue cleaning cities with garbage trucks that were 20 and 30 years old.
He said many municipalities lacked the funds to maintain roads or buy new equipment, including refuse collection vehicles, while many local projects were being financed through European funds rather than state support.
Vyras said stagnant state funding, inflation and higher operating costs had left municipalities facing a choice between reducing services and increasing fees. He said the purchasing power of state funding had fallen by around 20 per cent during the past year.
Call for agreement
While saying that the philosophy of local government reform was not wrong, Vyras said municipalities remained significantly underfunded and were struggling to meet basic obligations.
He said the work stoppage was not directed at residents but aimed to protect them from higher municipal taxes and ensure they continued receiving services.
Vyras said the government presented a new funding proposal on Friday, which municipalities were still examining, but said it did not appear to address their main concerns. He expressed hope that continued dialogue could produce an agreement, while warning that further action could follow if the proposal did not address the concerns.
