Today is a special day for me, as it is the first Annual General Assembly of the Union of Cyprus Municipalities, following the reform of Local Government, but also the last one I am attending as President of the Republic of Cyprus.
My presence at this year's Assembly, as I have attended the previous ones, is an indication of the appreciation and continued interest of both my Government and myself personally, for the multi-dimensional work that you, the local rulers, carry out, both the Municipal Councils of our free and nationally occupied municipalities.
This year's General Assembly finds the local government in Cyprus facing new modern facts, since with your significant support and creative cooperation we have succeeded in passing one of the most important reforms in the course of the Republic of Cyprus so far.
The final result may not fully meet the objectives we had set as the executive and/or may have caused individual reactions in Municipalities and Communities, but what emerges is a substantial strengthening of the developmental role of Municipalities in key areas along the lines of most European countries and best practices.
The new Municipalities Law provides for the creation of a total of 20 Municipalities by merging the existing 30 municipalities operating in the free areas and 63 Communities.
The new Municipalities Law provides for the creation of a total of 20 Municipalities by merging the existing 30 municipalities operating in the free areas and 63 Communities.
And I believe that it has been understood by the vast majority that the mergers were not an end in themselves, but the means to create stronger and more efficient municipalities, stronger and more efficient local governments that will be able to provide effective and quality services to their citizens.
The passing of the laws was a very important achievement for everyone. And this, as I have already mentioned, is due to the continuous and substantial support offered throughout the long period of this process by the Union of Municipalities and the political parties as a whole.
As the Union of Municipalities itself states on its website, the Local Government Reform, which will come into force in May 2024, safeguards the key policy pillars, which was also our objective, set during the relevant consultations, namely:
- The new municipalities will have increased responsibilities and powers over a wide range of issues;
- The new municipalities will be substantially independent of the central State. The new municipalities will no longer be subject to control of expediency but of legitimacy.
- The new municipalities will be administratively autonomous from the central State, so that they can exercise real policy in the local community.
- The new municipalities, as larger entities with enhanced powers, will have the necessary functional structure to be able to provide quality services to the citizen.
- The new municipalities, as larger entities with enhanced powers, will have the necessary functional structure to be able to provide quality services to the citizen.
- The Union of Municipalities, as the coordinating body of the municipalities, is established as a legal entity under public law.
- The criteria on which the mergers/mergers of municipalities are based are not one-dimensional, but take into account various data/criteria (geographical, population, social, economic, etc.At the same time, one of the most important objectives of the reform was the financial sustainability of the new local authorities.
In this context, in addition to the increased revenues due to the extension of the competences of the municipalities, the financial support that the municipalities will receive from the state will now be fixed at 117 million per year and of course significantly increased from the existing grant of 71 million.
At the same time, one of the most important objectives of the reform was the financial sustainability of the new local authorities.
In this context, in addition to the increased revenues due to the extension of the competences of the municipalities, the financial support that the municipalities will receive from the state will now be fixed at 117 million per year and of course significantly increased from the existing grant of 71 million.
At the same time, we are strengthening internal control, transparency through the publication of decisions and data, as well as the role of the citizen in decision-making, in accordance with the principles of the European Charter of Local Self-Government of the Council of Europe.
Allow me at this point to express my absolute satisfaction that this year's address is taking place in one of the most modern Conference Centres in Cyprus.
A three million euro project, co-funded by the EU, the Republic of Cyprus and the Municipality of Lefkara, which falls within the wider efforts of the State and the Local Authorities to improve the quality of life of the inhabitants of rural municipalities, the countryside, to achieve socio-economic, cultural and tourism development, as well as environmental sustainability.
Objectives that extend to every Municipality and Community of Cyprus, where the State has proceeded with the implementation of more than 1000 development projects amounting to more than 4.5 billion euros, which have either been completed or are under construction.
It is well known how favourably we have tended to the Municipalities, all of them without exception, regardless of the ideological background of the Mayor. On the contrary. There and where there were mature projects there was a direct response from the state. And I am happy to say that through cooperation we are witnessing the reform of the municipalities, a new breath of life in the municipalities, with projects, with specific actions that generally upgrade local authorities.
In addition to the above and because sometimes the memory is sometimes weak, I must recall that the Government, by decision of the Council of Ministers on 19 July 2017, undertook the repayment of the guaranteed loans of the Local Government Authorities, totalling 178 million euros. That is the property tax for municipal properties. And I want to assure you that my efforts will be intense so that there will be a solution to this problem as well.
I felt obliged to mention the above, not only to demonstrate that only through determination, responsible financial management and reform actions can we implement concrete projects that contribute to development and improve the quality of life of citizens, but also to highlight the initiatives of the municipalities and communities themselves towards the local community and their ability to act in a complementary and reinforcing way to the efforts of the central government.
And I am sure that with the common reform, common because it was the result of joint consultation of municipalities, local communities, political forces, we have achieved the achievement of administrative and financial autonomy and flexibility and the acquisition of increased and expanded powers by municipalities and communities and the goal of providing all citizens, wherever they live, with quality and upgraded services from local government at the lowest possible cost.
This project, like any great change, presents many challenges and difficulties, but I am sure that with the commitment you have shown, the initiatives you are taking - and I am glad that with Mr. Makriyannis, who will be one of the advisers to overcome some of the difficulties or to implement the reform more smoothly - we will finally be able to give flesh and blood to what has been the vision of all local communities, of all local governments - that is what I want to call them, separating them from the central State. You may be gaining a financial autonomy, but the state will never be far from the policies that you make because there are funds that can be absorbed for mature projects in municipalities, communities, etc. from the EU, from the central state through loan guarantees, etc.etc, and therefore what the close cooperation has worked so far, will continue with any Government, because no one is indifferent to the well-being of the municipalities, the countryside and the citizens of this country in general, so I am sure that through what we have achieved so far we will manage to deliver a Local Government that will be worthy of the expectations of citizens.
I wish you every success in the work of your Conference.
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