The dispute between the Union of Municipalities, the District Self-Government Organizations (EOA), and the Ministry of Interior over budget approvals has escalated, with municipalities threatening to suspend payments while the Ministry defends its position.

The Union of Municipalities and the EOA have raised serious concerns about delays in approving their budgets. Following a meeting, they warned that if their budgets were not approved by the upcoming Monday, they would suspend all payments, including salaries, if the issue remained unresolved by the end of the month.

Union President Andreas Vyras stressed the need for administrative and financial autonomy, warning that the ongoing delays threaten the effectiveness of local governance. He criticized the government’s failure to provide clear solutions, noting that municipalities and EOA could be forced into legal violations by making payments without approved budgets.

EOA Nicosia President Konstantinos Yiorkatzis further emphasized that the government is obligated to provide financial resources in accordance with the EU Charter, enabling municipalities to carry out their responsibilities. He announced that the Union and EOA would take decisive action, including holding a joint press conference and forming a committee to address the ongoing issues.

In a follow-up statement, the Union of Municipalities accused the Ministry of Interior of attempting to shift responsibility for the budget delays onto local authorities. The Union criticized the Ministry’s inaction, particularly regarding municipal reserves, financial commitments, and road maintenance, which had been transferred to local governments without the necessary funding.

Reiterating their stance, the Union warned that unless the budget impasse was resolved, municipalities and EOA would suspend payments starting Monday.

The Ministry of Interior responded to the accusations with surprise, insisting that it has maintained continuous communication and cooperation to finalize the budgets as quickly as possible.

According to the Ministry, municipalities only began submitting their budgets in February, with four still pending submission. Of the 16 budgets received, two have been approved, while the remaining 14 are under review. Regarding EOA budgets, the Ministry argued that they failed to meet required standards, necessitating further consultation to refine the budgeting framework.

The Ministry also addressed other concerns, such as proposed fee increases and the establishment of a municipal police force. It clarified that the government had set a maximum 35% increase in municipal fees in response to local government requests, and if municipalities wished to remove this cap, they could raise the issue in Parliament. Regarding municipal policing, the Ministry noted that a draft bill had been awaiting input from the Union of Municipalities for years.

In its concluding remarks, the Ministry maintained that it remains engaged in daily discussions with municipalities and EOA to resolve the budget issue and dismissed claims of government negligence.