The government’s measures to address rising prices are a step in the right direction, but they are not sufficient to alleviate the pressure households are facing from the increased costs of fuel, electricity, and heating, according to AKEL and DIKO. Speaking on the Alpha Kalimera program, economist and member of AKEL’s Central Committee, Vakis Charalambous, and DIKO Spokesperson Giorgos Solomou agreed on the need for additional and more targeted support.
Vakis Charalambous noted that increases in fuel and electricity prices have now become structural, with energy costs constituting one of the biggest “burdens” for households. As he put it, the government’s measures “are generally moving in a positive direction,” though he noted that “it’s not nearly enough. The measures are insufficient given the severity of the cost-of-living crisis.” He even argued that in some cases, the support amounts to little more than a “pat on the back” given the scale of the problem.
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According to Mr. Charalambous, AKEL proposes a different allocation of funds, with interventions totaling approximately €45–50 million. These include a quarterly transportation allowance based on income criteria for low- and middle-income households, single parents, low-income pensioners, and families with children, as well as a one-time heating allowance that is not limited solely to residents of mountainous areas. At the same time, a targeted 50% reduction in vehicle registration fees is proposed for approximately 100,000 of the poorest households.
Regarding the financing of these proposals, Mr. Charalambous pointed to increased government revenues, noting that in the first eight months alone, approximately €250 million more in VAT, as well as revenue from the auctioning of emissions allowances, which he estimated at close to €100 million annually. He also raised the issue of a greater contribution from those reporting very high profits, arguing that “those with immense wealth must, at long last, contribute to a reasonable extent. Proposals exist. The means exist. The scope exists. What is it that we find is missing? It is the political will.”
For his part, George Solomou acknowledged that the government has identified the problem and is moving in the right direction, but made it clear that DIKO believes there is room for further action. “To be honest, I don’t think the government has done enough with these measures. I believe it needs to introduce further measures. I believe it needs to examine other situations as well,” he said, referring in particular to high fuel prices and the increased cost of heating as winter approaches. He added that proposals for longer-term support for citizens—extending even until the end of next spring—will be considered.
The cost of electricity was also at the center of the discussion, with Mr. Charalambous reiterating AKEL’s proposal for a permanent 5% VAT rate on electricity and an expansion of the social tariff program. Mr. Solomou placed particular emphasis on the need to move forward with energy storage infrastructure, noting that it is not enough to provide incentives for solar panels without simultaneously creating the necessary infrastructure. “If we do not move forward, it will be one of this government’s greatest failures,” he said specifically regarding the issue of storage, emphasizing that Cyprus’s long-term dependence on oil leaves the economy and households vulnerable to international price hikes.
