Dialogos

The Other Side of the 'Strong Economy'

Published March 25, 2026, 07:01
The Other Side of the 'Strong Economy'

The government promotes an image of a strong economy, however official data shows that one in six Cypriots lives in poverty or social exclusion. The government focuses on bank profitability and credit rating upgrades, overlooking the difficulties faced by citizens in their daily lives. The increase in poverty and inequality indicates that government policies are ineffective and that wealth is distributed unfairly. The government has chosen to keep the minimum wage low, undermine collective bargaining agreements, and impose a 12% penalty on pensions, burdening the most vulnerable. The lack of adequate social welfare support exacerbates the situation. The government has the resources, but their allocation does not meet the real needs of citizens. The increase in persistent poverty is a structural problem, as more and more people are trapped in a vicious cycle of poverty. The income gap between the richest and poorest 20% is significant, demonstrating the unequal distribution of wealth. The government bears the political responsibility for these choices. The need for a policy change is urgent, with an emphasis on protecting workers, pensioners and families. Measures are needed to increase the minimum wage, strengthen collective bargaining agreements, abolish the pension penalty and strengthen social welfare. Only then will the gap between the official narrative and real life be bridged.