The reform of local government in Cyprus represents a historic milestone, laying the foundations for more modern and efficient local authorities. Its first year of implementation highlighted the advantages of a unified system, but also the difficulties that inevitably accompany such a major change.

With targeted improvements in institutional clarity, financial autonomy, staffing, citizen participation, the role of deputy mayors and digital transformation, the reform can evolve into a cornerstone for local development, the strengthening of democracy, and the improvement of citizens’ quality of life. One year later, it is appropriate to assess its results – the positive steps, as well as the challenges that emerged.

Positive outcomes

The merger of many small municipalities and communities into larger entities reduced fragmentation and created economies of scale. This led to more coordinated service provision, better use of resources, and the ability to implement larger infrastructure projects that were previously impossible.

The District Organisations of Local Authorities (EOA) improved uniformity and speed in key areas such as town planning, building permits, water supply, waste management and sewerage. The introduction of central procedures and common standards reduced bureaucracy, though delays still persist due to understaffing.

Community clusters allowed small rural areas to maintain their services and access expertise that was previously unavailable. This cooperation strengthened solidarity and reinforced local identity.

The reform also introduced greater transparency in the operation of local authorities. The publication of decisions, the existence of internal control mechanisms and the digitisation of procedures represent important steps toward a more open and accountable administration.

Moreover, the reform reinforced citizens’ perception that local government can serve as a driver of development, and not merely as a mechanism for meeting daily needs. The assumption of broader responsibilities by municipalities, along with closer cooperation with the state, opened new prospects in areas such as culture, green development and social policy.

Problems and weaknesses

The merger of municipalities and the creation of new structures proceeded without fully clarifying competencies, resulting in overlaps and administrative uncertainty.

The financial cost of the transition proved higher than expected, exceeding €320 million. The new structures require significant resources for staffing and operation, while municipal revenues are often insufficient to cover increased obligations. Consequently, reliance on state subsidies has grown, limiting the desired financial autonomy.

Another pressing issue is understaffing, especially within the EOA. Many positions are filled on a temporary basis, causing delays and overburdening existing staff. The lack of proper training and specialisation poses risks to the quality of services provided.

A further serious concern relates to the institution of deputy mayors, who in many cases function more as political representatives than as administrative officers. This disrupts smooth municipal operations and adds additional costs.

At the same time, citizens expressed dissatisfaction with the limited consultation before implementation. The changes were perceived as imposed “from above”, without meaningful participation of local communities. This affected trust and willingness to cooperate, particularly in small communities that fear the loss of their identity.

Finally, inequalities between urban and rural areas became evident. Large cities have more resources and administrative capacity, while smaller clusters struggle to meet increased obligations.

Recommendations for improvement

Based on the experience of the first year, several proposals emerge.

First, the competencies of each authority should be fully clarified to avoid overlaps and increase efficiency.

Next, for financial autonomy, mechanisms for resource redistribution should be created, giving municipalities greater revenue-raising capacity and reducing dependence on the state.

Permanent staff with properly trained personnel must proceed immediately, along with continuous education.

Regarding participation and consultation, institutionalised processes for citizen and stakeholder consultation should be introduced, ensuring decisions reflect real needs. To achieve balanced development, policies must support rural areas to reduce inequalities and safeguard the sustainability of all clusters.

Also, the completion of digitalisation of services is essential to enhance transparency, reduce bureaucracy and provide faster service to citizens and businesses.

Lastly, revision of deputy mayors’ role is needed. Their responsibilities must be clearly defined so they support, rather than compete with the mayor.