Politis

First Lady's Fund: Institutional Correction or Political Retreat?

Published February 15, 2026, 12:18
First Lady's Fund: Institutional Correction or Political Retreat?

The government appears to be backtracking on its initial decision to abolish the First Lady's fund, opting for a "differentiation" of its operation. The Deputy Minister to the President, Irene Piki, confirmed that an amending bill will be submitted to the Parliament, aiming to address the transparency and vote-buying issues associated with the fund. This change of stance raises questions about institutional credibility, political consistency, and Cyprus's image as an investment destination. The "differentiation" will be considered successful only if accompanied by clear legal provisions, full disclosure of contributions, annual audited financial statements, oversight by an independent Authority, and a ban on contributions from individuals with pending requests to the state. Without these guarantees, the change will be seen as mere impression management. The initial announcement of abolition was interpreted as an acknowledgement of a problem, while the retreat may be interpreted as a political maneuver. The European Union evaluates not only legality but also the quality of governance. The existence of a fund linked to the highest state office is not problematic in itself, but becomes so when there are no clear conflict of interest filters, there is no full traceability of funding, and the impression of access in exchange for favors is created. The choice of "differentiation" turns the issue into a test of institutional maturity. Society will assess whether the new form of the fund completely cuts off any possibility of a quid pro quo relationship, whether objective rules are established, whether oversight is truly independent, and whether a barrier is placed on contributions from entrepreneurs seeking state decisions. The issue now is whether the existence of the fund can be reconciled with the principle of institutional impartiality, the prohibition of indirect political funding, and the assurance that the Executive Branch does not operate under the slightest suspicion of financial gain.