MEP Giorgos Georgiou of AKEL says the European United Left group in the European Parliament has formally urged the European Commission to send a fact finding mission to Cyprus in order to assess, on the ground, alleged violations committed by banks, courts and the Republic of Cyprus in cases involving the forced sale of people’s primary residences. Speaking to Politis, he argues that the EU must see for itself the practices that have fuelled a social crisis.
Thousands of families in Cyprus live under the threat of foreclosure. Why has there been no political solution? Is it a matter of weakness or political unwillingness?
Foreclosures have grown into a social crisis because Cyprus lacks a comprehensive housing policy capable of protecting families who stand to lose their homes. Above all there is no political will on the part of the government to build a socially just framework that secures, in practice, the right to housing. AKEL has long pushed for a coherent strategy with strong and bold measures. Even the two housing schemes recently announced by the government may be positive steps but they do not address the underlying problems. The timeline of implementation also remains unclear. We recall the “New Housing Policy” of 2023 which, by broad consensus, has not delivered. We call on everyone who believes in the right to housing to support our efforts so we can secure real protection of the primary residence, fair restructuring of loans based on social criteria and a framework that places people, not bank profits, at its centre.
The debate inside the EU
You have asked, through the Left group, for EU intervention on the right to housing. How is the discussion evolving, including in relation to Cyprus?
In December 2023 the European Parliament held a debate on the situation in Cyprus. We sent a formal resolution on violations of borrowers’ rights to the Commission Vice President and relevant Commissioners. In January 2025 we succeeded in setting up a dedicated parliamentary committee on the housing crisis. As the Left group we tabled 147 amendments demanding an end to unlawful bank practices driving foreclosures. Importantly, we secured agreement to examine cases of Cypriot borrowers facing the loss of their primary residence at the Committee on Petitions.
Housing is not merchandise
Can the EU treat housing as a social right or do market logics prevail?
When we appealed to the Commission asking for measures because the right to housing is being violated in Cyprus, the Commission replied that it could not intervene. Despite all the rhetoric about values, the market logic prevails and treats housing as a commodity. Foreclosures of primary residences proceed at speed, with no alternative housing options. The legal framework serves the banks and leaves vulnerable groups unprotected. People are not even guaranteed the right to request suspension of a foreclosure until a court rules on the legality of the amount claimed by the bank.
Do you believe your interventions can change anything for Cyprus?
We owe the truth to people. Despite years of struggle both in Cyprus and in the Parliament, the problem persists and is growing. Since 2019 we have submitted 20 parliamentary questions and a memorandum signed by 50 borrowers documenting violations of EU directives. Yet no effective action was taken. Nothing has changed. The Commission’s tolerance is unacceptable. Their inaction sustains the injustice and makes them complicit. The continuous breach of EU borrower protection rules by the Republic and by the courts is evident and people are being crushed. Foreclosures accelerate. Banks’ windfall profits soar. Servicers act unchecked.
Inaction sustains the injustice
Is it possible for the EU to adopt binding rules forcing Cyprus to change policy or halt foreclosures of primary residences?
Commissioner Reynders disclosed that an infringement procedure has been open against Cyprus since 2013. Yet no meaningful action has followed to ensure alignment with EU law. Shockingly, during the 1 December debate at the Petitions Committee, Commission representatives claimed Cyprus is fully compliant. This shows they act as guardians of banking interests rather than citizens’ rights. They say they are waiting for Cypriot courts to refer bank violations to the EU Court of Justice. That will not happen because the courts themselves violate the directives. This is why we have proposed that the Commission send a fact finding mission to Cyprus to witness the violations directly and finally take action.
Can the Left build wider alliances to shift European policies?
We always seek alliances with progressive forces that understand the need for deep change so that EU policy puts people, not profit, at its core. Unfortunately some groups that present themselves as progressive often side with the right and far right against citizens’ interests.
Fidias and the ‘after the fact saviours’
There are reportedly two items relating to Cyprus on the Petitions Committee agenda. Influencer Fidias Panayiotou also claims credit for the initiative.
Petitions on Cyprus foreclosures are not new. The issue has appeared before the Petitions Committee in previous years. Last year it was again raised after a submission made in 2023. He did indeed take an initiative, but the request was tabled by the Left group. Many appear as ‘saviours’ after the fact. People will judge. What matters to us is achieving a real solution to a problem that is tearing society apart. We will continue our struggle undistracted by fireworks.