A debate has erupted in Cyprus between trade unions and the Minister of Finance over the automatic wage indexation policy. The government is reconsidering the cost of living allowance (CoLA) after a previous agreement cost 1.2 billion euros. The European Commission, IMF, and Fiscal Council warned of the risks to fiscal stability. The unions are trying to reverse reforms made under the country's rescue package. The author suggests that the government should adopt serious policy measures to address fiscal risks and drive economic growth. This includes incentivizing public and private employees to work past retirement age, creating a sovereign fund, and addressing the demographic risk by providing low-cost housing for new couples. The author questions whether the president has the vision and team to implement such a policy agenda.
A recent article from Cyprus Mail titled 'Has Cyprus adopted a mindset of helplessness?' highlights the dissatisfaction among Cypriots with their lives and the island's economy. As many as 35% of Cypriots are dissatisfied with their lives, and 19% are extremely dissatisfied with the economy. However, 80% believe that nothing will change. The article explores the influence of Stoicism, a philosophy that originated in Cyprus, on the island's mindset. Critics argue that stoicism leaves little room for emotion and natural human responses. The article mentions Philosophy Shots, a gathering in Paphos that aims to explore different schools of thought and find practical wisdom for everyday challenges. The meetings encourage dialogue, critical thinking, and action. The educational system in Cyprus is criticized for conditioning children to learn 'the right answer' by rote, and the church and parents are also accused of stifling true passions. The Philosophy Shots meetings aim to challenge these paradigms and encourage questioning and examination of beliefs. Despite the dissatisfaction expressed by Cypriots, Cyprus scored a 7.2 out of 10 on the wellbeing index, higher than the EU average. The article suggests that Cypriots may have a natural inclination towards stoicism due to the challenges they face, but this mindset can also hinder progress and lead to complacency. Philosophy Shots aims to encourage open-minded philosophical discussion and action to address pressing issues.
A new article from Financial Mirror titled 'A strategic EU role for the Cyprus problem' discusses the need for a strategic EU role in resolving the Cyprus problem. The author argues that the traditional negotiations process is flawed and suggests a slow, incremental process of 'deliberative democracy' to reach a negotiated settlement. The author also emphasizes the importance of the international community, particularly the EU and the US, in coordinating incentives to get the leaders to agree on a new process design. The article draws inspiration from the US's approach to Greece and suggests offering Cyprus a significant upgrade in its geopolitical clout and security as a carrot for a negotiated settlement. One idea is to establish a permanent humanitarian coordination base in Cyprus after a settlement is reached. The author also discusses the potential role of the European Commission or the Secretariat-General in driving the strategic thinking about Cyprus. The article concludes by mentioning the ongoing EU-Turkey dialogue and the need for a strategic approach to both the Greek Cypriots and Turkey.
Cyprus has appealed to the EU for assistance in dealing with a recent increase in Syrian refugees arriving by sea from Lebanon. The interior minister of Cyprus, Constantinos Ioannou, stated that the situation is worsening, with an influx of refugees arriving in rotting boats and putting their lives at risk. Over 600 people arrived in Cyprus this week alone, and Ioannou believes that the trend will continue. The increase in arrivals is partly due to a decrease in Lebanese authorities' efforts to stem migration at their coastline. Cyprus has been urging its EU partners to declare parts of Syria safe and provide aid to Lebanon to help stop the outflow of migrants. In the first three months of 2024, 2,004 people arrived in Cyprus by sea, compared to just 78 in the same period of 2023. Traffickers are charging $3,000 for a journey to Cyprus, compared to $7,000 for Italy.
According to a recent article from In-Cyprus, rental prices in Cyprus have increased at a faster rate than salaries. Limassol has higher salaries and rents compared to other cities. Paphos has higher average salaries and rents than Nicosia, while Larnaca has higher rents than Nicosia. Rents in Limassol, Nicosia, and Larnaca are more expensive compared to Athens and Thessaloniki. In Limassol, a family of four has a monthly cost of €3,145.7 excluding rent. Nicosia is 8.3% cheaper than Limassol, and the average rent in Nicosia is 55.8% lower than in Limassol. In Larnaca, the estimated monthly cost for a family of four is €3,112 excluding rent. Paphos is 2.1% more expensive than Nicosia, and the average rent in Paphos is 33.7% higher than in Nicosia. [990b4d03]