The economic measures announced are imperative and necessary, but there is a lack of comprehensive planning

Statement by AKEL Political Bureau Member and Head of AKEL’s Economic Policy Bureau Haris Polycarpou

26 March 2026, AKEL C.C. Press Office, Nicosia

Nikos Christodoulides’ announcements regarding the response to the economic impacts of the ongoing war—under pressure from society itself—include measures that are imperative and necessary.

All the measures that have been announced are included in the comprehensive proposal we had presented recently, because we understand the need and importance of supporting society and the economy. In particular, the measures to reduce taxes on fuel and electricity and the withdrawal of “green taxes” are measures AKEL has long pointed out should have been announced by the government.

However, once again, the government is leaving significant aspects of the economic impact out of its measures, especially when we consider the measures taken in other European countries. There are no measures addressing the debt obligations of households and businesses in the event of a significant increase in borrowing costs, social policy measures to support vulnerable population groups are absent, as well as measures to control prices in the face of continuous increases in energy and fuel costs. Above all, however, there is no clear direction on how the State will proceed—based on scenarios—if the war drags on for a longer period.

Today’s announcements are once again limited to stopgap measures and short-term fixes. The country needs a comprehensive plan and vision, with measures that permanently and structurally address the weaknesses of the Cyprus economy.