€7 million state grant released to parties ahead of May elections

Parliament has released €7 million in state funding to political parties for the upcoming elections in May, clearing a legal hurdle that had blocked the grant amid questions over alleged irregular payments in previous election cycles.

The release follows an opinion from the attorney-general, George Savvides a week ago which concluded that legal action to recover €2.6 million allegedly received illegally by parties in 2018 and 2021 would face serious obstacles.

The opinion said pursuing recovery would raise doubts about the success of any attempt and therefore the funds could be distributed without conditions.

The disbursement, credited to party accounts on Friday, provides a significant financial boost ahead of the May elections.

Parties can now fund campaigns and communications freely, with allocations based on the 2021 parliamentary election results.

Disy received €1.98 million, Akel €1.62 million, Diko €890,000, Elam €591,000, Edek €587,000, Dipa €546,000 and the Ecologist Movement €434,000.

Youth wings were granted €314,640 and an additional €100,000 was earmarked for overseas activities promoting Cyprus’ official positions.

The dispute over the €2.6 million has persisted for now eight years.

€2.09 million from 2018 was intended for presidential election campaigns but was used by parties for operational expenses.

The remaining €577,511 from 2021 arose from misallocated funds that a legal review concluded should be redistributed among parties rather than reclaimed by the state.

Previously, auditor-general, Andreas Papaconstantinou, urged Savvides to freeze the 2026 grant until clarification on the disputed funds.

His office had argued that the failure to recover the 2018 and 2021 amounts could result in a permanent loss of public money.

Yiota Michael, audit office spokeswoman, said the intervention was intended as “a means of pressure” but ultimate responsibility rests with parliament.

The 2026 House budget also includes €5.6 million to cover salaries and benefits for more than 100 parliamentary staff, effectively an indirect grant to parties.

Under the law, parties must submit audited accounts of state funding within ten months of the end of each financial year.

The release comes as parties prepare for a competitive parliamentary election in May, with new political formations challenging the dominance of the political establishment.

Legal and financial uncertainties over the state grant, which were only resolved following the attorney-general’s opinion, had raised concerns over campaign readiness.