Nicosia, Cyprus. Nicosia mayor Charalambos Prountzos backed a municipalities’ protest over local government reform on Monday, calling for increased state funding and saying the capital receives at least €12.5 million less than it needs in annual grants.
He said insufficient funding affects residents’ quality of life, rather than only municipal operating costs.
Funding shortfall
Prountzos described the protest, organised by the Union of Cyprus Municipalities, as highly symbolic.
He said staff costs account for around 40 per cent of Nicosia municipality’s expenditure and that municipalities want to provide more than basic services.
A recent study found that Nicosia should receive at least €35 million in annual state funding, he said. The municipality currently receives €22.5 million, leaving a shortfall of €12.5 million.
Calls for indexation
Prountzos said municipalities were ready to make difficult decisions but said the government must also fulfil its responsibilities.
He called for an indexation mechanism to adjust municipal funding in line with inflation and operating costs, while rejecting an interior ministry proposal to raise municipal fees.
“We have no problem with rationalisation; we are ready to make difficult decisions,” he said.
Strovolos position
Strovolos mayor Stavros Stavrinidis also called for increased state funding and greater administrative independence for municipalities.
“The state has two weapons: it can cut state funding if it disagrees with the figures submitted and it can refuse to approve municipal budgets,” Stavrinidis said.
He said the objectives of local government reform had not been achieved and argued that the cost of services should not be transferred to residents through higher taxes or fees. He added that municipalities could take further action if no agreement is reached with the interior ministry.
