**Nicosia Mayor Supports Municipalities' Protest for Increased Funding**
Nicosia, Cyprus – Charalambos Prountzos, the mayor of Nicosia, has publicly endorsed a protest organized by the Union of Cyprus Municipalities, advocating for increased state funding to local governments. The protest, held on Monday, highlighted the financial challenges faced by municipalities, particularly in the capital, which Prountzos claims is receiving significantly less funding than necessary.
During the protest, Prountzos emphasized that Nicosia requires at least €35 million in annual state funding to meet its operational needs. However, the city currently receives only €22.5 million, resulting in a shortfall of €12.5 million. The mayor stated that this lack of funding directly impacts the quality of life for residents, beyond merely affecting municipal operating costs. “We want to do as much as we can, not just the basics,” he remarked, noting that staff costs constitute around 40 percent of the municipality’s expenditures.
The mayor called for the government to implement an indexation mechanism that would adjust municipal funding in accordance with inflation and rising operational costs. He expressed his disapproval of the interior ministry's proposal to increase municipal fees, arguing that municipalities are willing to make necessary adjustments but that the government must also fulfill its financial obligations.
Stavros Stavrinidis, the mayor of Strovolos, echoed Prountzos's concerns, stressing the need for greater administrative independence and increased funding for municipalities. He pointed out that the state has significant control over municipal budgets, with the power to cut funding or refuse budget approvals. Stavrinidis criticized the current local government reform efforts, stating that they have not met their intended objectives. He warned that municipalities might consider further actions if an agreement with the interior ministry is not reached.
Stavrinidis highlighted that municipal funding in Cyprus constitutes less than 2 percent of the state budget, a stark contrast to the 4 to 5 percent allocation seen in many European Union countries, and up to 20 percent in some instances. He argued that the demand for increased funding is not due to poor financial management but rather a result of additional responsibilities being placed on municipalities without the necessary resources to support them.
Both mayors underscored the importance of adequate funding not only for covering expenses but also for the development and enhancement of their cities. Without sufficient financial support, they contend that municipalities will struggle to deliver on their commitments to residents.
The protest served as a critical reminder of the ongoing challenges faced by local governments in Cyprus and the need for a collaborative approach between municipalities and the state to ensure sustainable development and improved living conditions for citizens.