Cyprus' municipalities will stage a three-hour peaceful protest on Monday, 3 August, escalating their dispute with the government over state funding and warning that the cost of local government reform must not be passed on to residents.
Speaking at a press conference in Nicosia on Friday, Union of Cyprus Municipalities president Andreas Vyras said municipalities are seeking the financial resources needed to match the expanded responsibilities transferred to them under the local government reform programme.
Funding dispute at centre of row
Vyras argued that the actual state grant received by municipalities amounts to €117 million, rather than the €144 million frequently cited by the government.
He said the amount agreed in 2019, adjusted for inflation, should now be close to €139 million.
According to Vyras, part of the funding presented as additional support actually relates to responsibilities transferred from central government.
Of the €144 million, around €15 million concerns the maintenance of primary road networks, a responsibility now carried out by municipalities.
A further €12 million relates to compensation for revenue losses linked to development licensing.
Inflation has eroded support
The Union of Municipalities said state tax revenues increased from €4.65 billion in 2010 to €10.8 billion in 2024, while municipal funding remained largely unchanged.
It also argued that funding per resident has fallen from €188.35 in 2010 to around €155 today, despite municipalities taking on additional responsibilities, integrating 63 communities and facing higher operating costs.
Vyras said inflation has reduced the purchasing power of the state grant by roughly 20%, while the costs of fuel, electricity, materials, labour and services have risen substantially.
'Residents will not pay'
The municipalities' president said the reform itself remains necessary and important, but warned that its success depends on adequate financing.
"The reform did not fail because of its philosophy. It is being undermined by chronic underfunding," he said.
"When the state transfers responsibilities without the corresponding financial resources, either services to citizens are reduced or the cost is shifted onto residents. We will not allow that."
The Union continues to advocate linking state grants to a fixed percentage of the national budget, in line with principles contained in the European Charter of Local Self-Government.
Three-hour protest on Monday
The Union of Municipalities has announced a three-hour protest from 9am to 12pm on Monday, 3 August, while also launching discussions with political parties, MPs, mayors, employees and trade unions on a long-term funding model.
Vyras said municipalities are not seeking special treatment but the resources required to carry out the duties assigned to them.
"State grants are not an expense. They are an investment in local communities, municipal services and citizens' quality of life," he said.
Source: CNA
