Govt, Akel trade statements over economy, cost of living

The government and Akel traded strongly-worded statements over the state of the economy on Saturday, with Akel decrying the fact that one in six people in Cyprus are, according to the European Union, at risk of poverty or social exclusion, and the government defending its records.

Akel began the day by criticising President Nikos Christodoulides’ May Day message, in which he listed the achievements of his government which he says have been to the benefit of workers, saying that Christodoulides “did not comment” on the EU’s findings.

It also said that in Christodoulides’ hailing of recent increases to the minimum wage, he “did not clarify” that Cyprus’ minimum wage still falls short of the EU’s target that the minimum wage in every member state be at least 60 per cent of the median salary.

Additionally, it said, Christodoulides “did not explain the long delay observed in the ratification by Cyprus of the European directive for at least 80 per cent of workers to be covered by collective bargaining agreements”

“The directive, which was supposed to be incorporated into national law by November 15, 2024, is one of the most important weapons in addressing the policies of deregulation of labour and the protection of workers,” it said.

Cyprus has not yet wholly transposed the directive into its national legal system, with the EU having set June 7 this year as its deadline for transposition. Should the government not meet that deadline, it could be taken to the European Court of Justice.

Akel on Saturday then turned its attention to the May Day marches organised across the island, saying that “thousands of workers of all ages” had “flooded the streets of every town and village in the country yesterday with … demands for workers’ rights and the dignity of society”.

“Amidst the pressing social conditions, on this year’s May Day, the resounding message sent by the working class stood out – that the country does not belong to the banks and the one per cent of the richest people in Cyprus who exploit the country’s wealth and benefit in every way from the policies of the government and the establishment parties,” it said.

It added that “the hundreds of thousands of workers who drive Cyprus’ economy every day are entitled to decent wages, guaranteed basic rights, collective labour agreements, job security, humane working hours”.

Government spokesman Konstantinos Letymbiotis offered a terse response, saying that “society does not need lessons in social sensitivity from those whose policies, when they governed, contributed to an increase in poverty, the explosion of unemployment, and the opening of food banks”.

“Akel remembers 2025. It forgets 2013. However, society cannot forget, because the consequences of its destructive policies still haunt the country,” he said.

His mention of 2013 is a reference to the banking crisis which hit Cyprus in 2012 and 2013, when rising amounts of non-performing loans – money owed to a bank which it is unlikely to recover – effectively left Cypriot banks insolvent, with the Cypriot state thus requiring a bailout from the European Union.

Letymbiotis on Saturday said that Akel “has every right to criticism”, but that “it does not have the right to a selective memory”.

“The facts show who, when they governed, poverty skyrocketed, who bequeathed food banks, and even today, 13 years later, we are called upon to pay the bill for their own reckless policies,” he said.

He added that while Akel invoked the figure of one in six being at risk of poverty or social inclusion, “the government does not underestimate any number or any social difficulty”, and that every person who “is pressured” constitutes “a reason for more effort, more targeted policies, and a stronger welfare state”.

“The truth, however, requires a complete picture, and not selective reports. Akel neglects to mention that in 2025, the percentage of people at risk of poverty or social exclusion was 17.1 per cent, while during the period it governed, the figure increased from 23.3 per cent in 2008 to 27.8 per cent in 2013,” he said.

He added that “in other words, under Akel’s government, the risk of poverty or social exclusion increased by 4.5 per cent”, but that “today, it is 10.7 per cent lower than it was in 2013”.

“This is not a detail. It is a receipt,” he said.

To this end, he said that “while Akel chooses to isolate a number, the overall picture shows something very specific – the incumbent government is implementing policies which truly boost people’s income”.