The budget proposal for the state aid ombudsman in 2026 has seen a significant increase, totalling €703,280, as announced by commissioner Stella Michaelidou during a session with the House Finance Committee on Monday.
State aid: Budget Increase and Staffing Developments
The budget has risen by €129,852 compared to previous allocations, a development welcomed by committee members. Notably, the office has recently expanded its workforce with the hiring of four permanent staff members, enhancing its operational capacity.
Concerns Over Rising Accommodation Costs
Despite the positive staffing news, there are concerns regarding a 42 per cent increase in accommodation costs for the office. Diko MP Christiana Erotokritou, chair of the committee, questioned the necessity of this rise in rental expenses. Michaelidou clarified that the office currently operates from an apartment and that the new premises were selected through a transparent process involving the public works department and finance ministry. The rental increase is set at €63,000, as assessed by the land registry.
Long-Term Stability and Future Planning
The commissioner assured the committee that the new location meets the approved organisational requirements, which should prevent the need for further relocations in the near future. Following the addition of four permanent hires, the office aims to operate exclusively with permanent staff moving forward. Any secondments that conclude in 2026 will be evaluated individually, with renewals being considered based on the office’s operational needs at that time.
Strengthening EU Relations and Upcoming Events
Additional budget increases are attributed to the office’s participation in European Union competition groups. Michaelidou highlighted the office’s recognition from the EU for maintaining the state aid register. In a significant upcoming event, the office will host the state aid working group in Cyprus for EU member states in June 2026.
Guiding Principles of the Office
Michaelidou emphasised the importance of the office’s role in advising on the allocation of public resources, adhering to EU state aid principles such as transparency, proportionality, necessity, and appropriateness. This guidance is critical for ensuring that aid is distributed effectively and fairly.
Political Support and Broader Implications
Support for the office’s work was voiced by Disy MP Harris Georgiades, who pointed out that EU competition policy is among the most advanced in Europe, underscoring the vital role of the commissioner. Meanwhile, Green Party MP Stavros Papadouris raised inquiries regarding outcomes from a recent Copenhagen conference focused on affordable housing. In response, Michaelidou indicated that the office is contemplating whether housing could be classified under services of general economic interest, which would enable EU member states to better serve their citizens.
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