Cyprus municipalities warn of higher local taxes or reduced services without increased state funding
Municipalities across Cyprus have issued a warning that residents may face increased local taxes or reduced municipal services unless the government steps up state funding. This follows a three-hour protest outside Larnaca Municipal Hall, where officials highlighted the urgent need for financial support. Andreas Vyras, mayor of Larnaca and president of the Union of Cyprus Municipalities, emphasized the dilapidated condition of essential equipment, such as garbage trucks aged 20 to 30 years.
Vyras explained that stagnant state funding, coupled with inflation and rising operating costs, has left municipalities struggling to maintain roads and services. Many local projects are currently reliant on European funds rather than sufficient government support, and the real value of state funding has dropped by about 20% over the past year. Despite reforms aimed at improving local governance, municipalities remain significantly underfunded.
While a new funding proposal was presented by the government last Friday, municipal leaders feel it does not adequately address their concerns. Vyras stressed that the recent protests aimed to protect residents rather than disrupt services, and warned that further action could be taken if dialogue does not lead to an acceptable funding agreement.
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