Nicosia Mayor Charalambos Prountzos on Thursday rejected the view that closing the capital’s central Makarios Avenue to traffic is the main issue facing the street, warning instead against a possible loss in European Union funding should the road be fully opened to regular traffic.

Speaking to the Cyprus Mail, Prountzos said it was “a disservice” to shopkeepers and residents to promote the narrative that a lack of vehicular traffic on the road has caused its decline.

He cited findings from the Academy of Urbanism and the scientific and technical chamber (Etek), alongside his own view, that cars were not the chief problem.

“We need an integrated and robust solution that can address these long-term issues”, he said.

He said the city council had requested a full scientific and holistic study of the avenue.

The transport ministry has since informed the municipality in writing that it will not cover the cost of the study.

“Obviously I am not downplaying the impact on the shopkeepers”, Prountzos said, “but before any decision is made we must ensure that European funding is protected and that the project still serves its original intention.”

The funding lies at the heart of the dispute, with the redevelopment of the commercial triangle, Makarios Avenue and Stasikratous Street costing €24.7 million, of which the EU contributed €21 million.

The money was granted for objectives that included sustainable mobility and reducing private car use.

“There is a decision by the city council, and we are earnestly trying to provide a real solution to decisions the municipality inherited”, Prountzos said.

The council voted last year to allow private vehicles on the avenue on weekdays between 7am and 9pm, with access outside those hours limited to buses, taxis, residents and employees.

The decision still needs approval from the transport department and the public works department, as well as police chief Themistos Arnaoutis.

The transport ministry has said it will not agree to changes unless it is established that they would not lead to EU funding being recovered.

Transport Minister Evi Tsolaki is due to meet Prountzos on Friday to discuss outstanding issues in the capital.

A joint platform of shopkeepers claims two in three shops on the avenue are empty and wants two-way traffic restored on its southern section, south of the former Debenhams and Woolworth’s

Prountzos disputed the figures, citing municipal data that shows “70 of 106 ground floor premises are occupied and 36 are vacant, of which only 16 are on the market for rent”.

The municipality intends to propose a tax on idle shops held by landlords demanding exorbitant rents.

Prountzos acknowledged shortcomings in the original scheme, as it required the state to “double down on public transport and cycling lanes, which [the government] has admittedly failed to do”.

Likewise, a committee representing shopkeepers and residents in the historic old walls demanded on Wednesday that the mayor resign over a preliminary redevelopment proposal for Ledras and Onasagorou streets.

It accused him of mishandling the public consultation and claimed a contract with PwC, paid from municipal funds, was intended to “buy the result” against small businesses and residents.

Prountzos outright refuted the committees’ “insinuations”, insisting that “PwC was hired as an independent consultant to design an innovative structure for public dialogue” on the old town projects, an approach he explained as being “perfectly in keeping with other European urban projects”.