Cyprus local government reform has failed and urgent corrections are needed to rescue it

Opinion Top News Cyprus local government reform has failed and urgent corrections are needed to rescue it Dimoi Id 639176 Relevant News Sopranos star Vincent Pastore dies aged 80 2 August 2026 Cyprus local government reform has failed and urgent corrections are needed to rescue it 2 August 2026 Boeing triggers US government challenge over record EU loan to Airbus 2 August 2026 Eleftheria Paizanou 2 August 2026 FacebookXWhatsAppEmailPrintViber A country without reforms cannot modernise and progress. Reforms improve the way the state functions so that it responds better to the needs of its citizens and the economy, with the ultimate goal of making it fairer, more efficient, and more transparent. In Cyprus, significant reforms have taken place over the last decade, including the National Health Scheme (Gesy), the digital transformation of the state, as well as overhauls in justice, the civil service, local government, and taxation. Every reform brings its own benefits, problems, and challenges, which often become the focus of political confrontation and disagreement. Unfortunately, however, it appears that some of the reforms implemented in our country are failing to fully achieve their goals, such as saving resources, delivering radical changes, and simplifying procedures. This is not to dismiss the efforts that have been made. Indeed, despite the weaknesses identified from time to time, some of these reforms have helped improve the quality of life for citizens and streamlined processes for businesses. On the flip side, however, certain ongoing reforms have brought about the exact opposite results. For instance, the fundamental aim of the local government reform was to ensure the administrative and financial autonomy of municipalities, secure their economic viability, and offer better quality services to the public. Regrettably, what we are actually witnessing is that the dependence of municipalities on central government has not decreased, local authorities have not become financially stronger, and the savings expected from mergers have failed to materialise. Furthermore, despite the promises made during discussions between the stakeholders, not only have there been no savings for the public, but local authorities have actually burdened citizens with additional fees and charges. Over the last few days, we have been watching an intense dispute unfold between the Union of Cyprus Municipalities and the Ministry of the Interior, driven primarily by the level of state funding allocated to the 20 municipalities. The ministry argues that, following the reform, state funding increased from €70.8 million in 2022 to €117 million in 2024. It also notes that from 2025 onwards, total state support to municipalities will amount to approximately €144 million annually. In fact, the ministry states that total state funding is expected to rise from €70.89 million in 2023 to €147,88 million in 2027, representing an increase of roughly 108.6 per cent. The municipalities, for their part, reject the government’s claims. They maintain that the additional funds of €27 million they receive post-reform—which cover road maintenance and lost revenue from transferring property development licensing to the District Self-Government Organisations—do not constitute an increase in basic state funding. Instead, they argue this is targeted funding tied directly to the transfer of new responsibilities under the overhauls. Aside from the funding amount, another major sticking point is the formula used to adjust state funding each year, alongside the size of the increases. Unfortunately, the facts show that the local government reform has failed, as it is creating additional costs for the state. The financial dependence of municipalities on central government is growing year by year. It is time for the state to consider stepping in with changes and corrections to eliminate these distortions. Concurrently, the government, in cooperation with political parties, must find ways to achieve savings by abolishing certain new positions, such as deputy mayors, who have no meaningful duties. The executive and legislative powers must work together to review the local government reform model and further reduce the number of municipalities. Political parties must accept that local authorities are no longer their partisan strongholds and fiefdoms. Ultimately, changes must be made with the sole target of improving the services provided to citizens. 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