The 2026 budget for the state aid ombudsman has increased by €129,852, bringing total planned expenditure to €703,280, commissioner Stella Michaelidou told the House Finance Committee on Monday.
Committee members welcomed the recent hiring of four permanent staff members to the office. However, the committee’s chair and Diko MP Christiana Erotokritou raised concerns over a 42 per cent increase in the office’s accommodation costs.
During the session, Erotokritou questioned the need for the rise in rental expenses. Michaelidou explained that the office currently operates from an apartment. The new premises were selected following procedures set by the public works department and the finance ministry. The land registry assessed the rent, which is set to increase by €63,000.
The commissioner said the new location meets the approved organisational requirements, avoiding the need for further relocations in the coming years.
She also clarified that, following the four permanent hires, the office plans to operate solely with permanent staff. Any secondments ending in 2026 will be assessed individually, and renewal will be considered based on the office’s needs at that time.
Additional budget increases are linked to participation by the commissioner or her staff in European Union competition groups. Michaelidou said that the office has received recognition from the EU for maintaining the state aid register and announced that in June 2026 it will host the state aid working group in Cyprus for EU member states.
The commissioner emphasised that the office advises on the allocation of public resources according to EU state aid principles: transparency, proportionality, necessity and appropriateness.
Supporting the office’s work, Disy MP Harris Georgiades said that EU competition policy is one of the most advanced in Europe and highlighted the importance of the commissioner’s role. Green Party MP Stavros Papadouris asked about conclusions from a recent Copenhagen conference on affordable housing.
Michaelidou responded that the office is examining whether housing could be included under services of general economic interest, allowing EU member states to better serve citizens.
