As Cyprus heads towards the parliamentary elections of 24 May, parties are converging on a central message to voters regarding the economy. Addressing the rising cost of living is the top priority for the next parliamentary term. In an environment where high prices are affecting households and businesses, boosting incomes, particularly for the most vulnerable groups, is emerging as a common thread in election proposals. Despite differences in approach, parties are focusing on policies aimed at easing the burden of rising costs for essential goods, energy and housing. The housing issue, tax relief measures and strengthening social cohesion form the core of a broader strategy to reduce inequalities and restore purchasing power.
Party positions
DISY
According to DISY, “we have repeatedly highlighted the main socio‑economic issues.”
The first issue is the cost of living and how it can be addressed, especially for the most affected groups.
The second issue is housing, which should be tackled through incentives for the construction of new homes.
The third is bureaucracy, which should be reduced as much as possible through the digitalisation of the state and the wider economy.
The fourth is traffic congestion, which leads to a waste of resources, affects quality of life in cities, causes loss of working hours and imposes a substantial cost on the national economy.
AKEL
AKEL emphasises that its priorities in the new parliament will continue to focus on the social agenda.
Immediate priorities include:
Completing discussion on regulating the property market for third‑country nationals, introducing limits and restrictions on purchases by non‑EU nationals and foreign‑interest companies.
Finalising discussion on reducing indirect taxation, including a permanent 5% VAT rate on electricity, to ease the burden on low‑ and middle‑income households, along with imposing taxes on excess bank profits to fund housing policy.
Strengthening collective agreements, with the aim of ensuring their legal enforcement and expanding their scope across entire sectors.
EDEK
EDEK’s priorities in economic and social policy are as follows:
Housing crisis: EDEK has developed the 'General Housing Scheme,' based on cooperation between the state, local authorities and the private sector, making use of state land to quickly supply affordable homes for purchase and long‑term rental.
Pension reform: It proposes abolishing the basic pension and introducing a universal social and statutory pension for all insured individuals. The social pension would be set at 60% of the median wage, around €800, funded by the state’s Consolidated Fund, alongside a €435 minimum pension from the Social Insurance Fund, totalling €1,235.
The cost would be covered through savings from current low pensioner benefits and proportional reductions in the state contribution.
Early retirement penalty: EDEK proposes abolishing the 12% reduction for pensions below €1,000 and reducing it to 6% for higher pensions, as a temporary measure until the new universal system is implemented.
DIKO
DIKO’s positions will be featured in Tuesday’s edition
DIPA
DIPA identifies three key economic issues: the rising cost of living, the housing problem and the need to support the middle class, vulnerable groups and small and medium‑sized enterprises.
On cost of living, it proposes reducing energy costs, tax relief and lower VAT, especially on essential goods, as well as abolishing double taxation on fuel and electricity bills.
On housing, it calls for the creation of a unified housing authority, combining public bodies such as the Cyprus Land Development Corporation, the Housing Finance Corporation and KEDIPES, alongside the construction of social housing, rent subsidies for young people and single‑parent families, and support for young couples to acquire homes. It also advocates broader income criteria for housing schemes and revised criteria for disadvantaged areas, allowing partial eligibility rather than exclusion.
DIPA also supports compensation mechanisms for loss of use of properties in the occupied areas and transfer of building density to increase housing supply.
Finally, it prioritises strengthening the real economy, especially the middle class, vulnerable groups and SMEs, and proposes increased support for pensioners. It also calls for raising the minimum wage to €1,200 and introducing a four‑day working week with no reduction in pay.
In Tuesday’s edition: Positions of DIKO, Volt and Alma
