Nicosia: The President of the Republic, Nikos Christodoulides, described the implementation of the Local Government reform as necessary, speaking on Monday at the General Assembly of the Union of Cyprus Municipalities in Nicosia, noting that any corrective measures will be examined through dialogue with all parties involved.
According to Cyprus News Agency, in his address, the President particularly welcomed “the achievement of a final agreement on the sensitive issue of the 40% limit, which affects not only the functioning of the municipalities themselves but also their employees, in a way that gives appropriate weight to the developmental role of the municipalities.” Regarding state subsidies to municipalities, President Christodoulides recalled that this is determined “by the relevant legislation to pound 117 million, which was also agreed with the Union of Municipalities.” He emphasized the importance of discussion to achieve the desired results and avoid fragmentation in relation to subsidies.
The President stated that the reform after nearly a year and a half of implementation has proved necessary, providing a healthier and more modern basis for local authorities’ operations. He acknowledged that the new municipalities, still in their early stages post-merger, require more time to achieve better results for citizens.
He further mentioned the government’s intention to review the Deputy Mayor institution, noting that corrective measures have already been implemented to clarify duties, approved by the House of Representatives. However, he noted the need for a comprehensive arrangement before the next local authorities’ term, stressing the necessity of revising plans that did not meet expectations and equipping municipalities with tools for efficient operation.
Minister of the Interior Constantinos Ioannou added that 16 months into the reform, ongoing evaluations are being conducted by the central government, parliament, and local authorities. Observations have led to two amendment strands aimed at addressing legislative distortions, with improvement measures to benefit society.
Minister Ioannou also raised concerns about the long-term sustainability of some municipalities, noting that mergers overlooked objective criteria, creating uneven speeds among local authorities. The government plans to review and evaluate these cases in consultation with the Union of Municipalities and political parties.
On municipal finances, Ioannou highlighted the increased subsidy to municipalities by pound 45 million post-reform. However, he noted the concern about the pound 117 million reduction in purchasing power affecting municipal development. Plans are underway to develop a formula for subsidy calculation, ensuring regular adjustments through legislative amendments.
Regarding deputy mayors, Ioannou mentioned recent amendments granting specific non-executive powers following discussions with deputy mayors. Mayor of Larnaca, Andreas Vyras, President of the Union of Cyprus Municipalities, mentioned the Union’s efforts to host the European Committee of the Regions’ Bureau meeting in 2026 and plans for extended meetings to review local government reform progress.