Union of municipalities call out government over funding

The union of municipalities on Wednesday called an urgent meeting with all mayors to assess the government’s commitment to the reform and financial sustainability of the municipalities.

The union said that a letter was sent to President Nikos Christodoulides expressing its concerns over the progress implementing the government’s commitments.

Active issues include the payment of 60 per cent of lost licensing revenue, securing funds for road network maintenance, disbursing funds for development projects in newly established municipalities, and calculating 40 per cent of payroll costs.

“These commitments, after all, constitute announcements the president made himself,” added the union.

In the letter, the union noted that during a meeting with Interior Minister Konstantinos Ioannou and a finance ministry representative, delays and ambiguities regarding key financial issues from previous agreements were confirmed.

The union of municipalities said that failure to comply with the agreements creates reasonable concern and undermines trust between the municipalities and the state.

Th union finally called on the president to personally intervene to ensure compliance with the agreement and the smooth functioning of local governments in the new institutional framework.