Newsroom
In an article in this Sunday's Kathimerini, Apostolos Tomaras writes that Just two months into the tenure of Cyprus’ new local government, the Nicosia Municipality is grappling with significant financial challenges, raising concerns about its ability to comply with legal requirements.
According to the article, Nicosia Mayor Charalambos Prountzos expressed doubts about the municipality's capacity to present a balanced budget, a prerequisite for receiving the annual state grant. This financial strain is compounded by the heavy burden of operational and developmental responsibilities, including preparations for Cyprus’ EU Presidency in 2026.
The financial difficulties stem from a combination of inherited deficits, the city’s role as the state’s administrative center, and daily pressure from visitors. Prountzos highlighted that Nicosia, unlike other municipalities, lacks revenue streams like tourism, and called for realistic state funding without risking accusations of preferential treatment.
The municipality's payroll exceeds the legal limit of 40% of the budget, reaching 50%, and outdated infrastructure adds to the financial strain. For instance, Nicosia’s aging fleet of vehicles costs the city €1 million annually in fuel, and the Aglantzia swimming pool, which needs maintenance, will require over €400,000.
In addition to financial management, Nicosia faces other pressing issues, such as ongoing projects, historic center revitalization, and environmental concerns related to outdated vehicles. The municipality also struggles with the complexities of the new local government model, including staff and system integration, asset management, and the absence of consistent regulations across newly consolidated areas.
Prountzos has also raised concerns about recent changes to Makarios Avenue, Nicosia’s commercial hub. He suggested reversing the one-way traffic system in part of the area and mentioned that the Traffic Committee would address the broader issues affecting the avenue, potentially involving public consultation.
As Nicosia navigates these challenges, the pressure is on to adapt to the new administrative framework while ensuring the city’s financial and operational stability.
