The interior ministry will submit amendments to the current local government reform legislation to parliament by January, chairman of the union of municipalities Andreas Vyras said on Tuesday.
He was speaking following a meeting between the union and President Nikos Christodoulides and Interior Minister Constantinos Ioannou at which Vyras outlined the union’s request for its recommendations to be considered in proposed changes.
Vyras said discussions focused on the progress of the reform and the planned legislative adjustments aimed at achieving administrative and financial autonomy for municipalities, as well as addressing other matters such as the role of vice mayors and objectives for the next five years.
The meeting also covered the issue of state grants, with Vyras saying that the current legislation includes provisions for the transfer of powers to municipalities, along with corresponding funding from the central government.
“However, there has been a problem with the transfer [of powers]. We implemented the reform to be more flexible and efficient, but we have largely failed to achieve the goal of administrative autonomy,” he said.
Vyras provided the example of municipalities being unable to autonomously hire workers or employees if their expenses remain within a specific budget percentage, resulting in significant operational issues.
He also said the finance ministry has determined that municipalities with a budget surplus will not receive or will see reductions in state grants.
Vyras explained that such surpluses are often allocated for specific projects or works, which the finance ministry’s stance does not consider, nor has it been discussed or agreed upon.
By January, Christodoulides is expected to discuss this matter with the finance minister, as well as the issue of property tax on municipal assets.
“If this tax is implemented, almost all municipalities will face closure,” Vyras warned, adding, however that the president has committed to handling the issue personally and updating the union on the outcome.
