Politis

AKEL: 11 Proposals to Address the Impact of the War

Published March 21, 2026, 12:16
AKEL: 11 Proposals to Address the Impact of the War

AKEL has presented a package of 11 proposals to address the impact of the war in the Middle East on the Cypriot economy and society. The party points out that uncertainty about the duration and outcome of the conflict remains, while the consequences of the war have already begun to affect the global economy, with increased inflationary pressures and a slowdown in growth rates. Particular reference is made to the increases in international energy prices, which are also being passed on to Cyprus, affecting fuel and electricity costs. Estimates suggest a possible increase of up to 15% in electricity prices by the end of the summer. This is expected to affect household disposable income and business operating costs. In addition, impacts on tourism are being recorded, with cancellations and lower occupancy rates compared to last year. AKEL calls on the government to draw up a comprehensive response plan, including short-term, medium-term and long-term measures. The AKEL's proposals include support for affected sectors, protection of vulnerable borrowers, reduction of VAT on electricity, tiered subsidies for electricity costs, reduction of excise duty on fuel, strengthening of controls to prevent profiteering, withdrawal of 'green' taxes, support for tourism and strengthening of domestic tourism. Funding for the measures could come from the state budget, European programs, pollution revenues and taxation of excess profits.