DISY president Annita Demetriou has called for a shift in fiscal policy away from rigid expenditure and broad-based measures towards investment, reform and targeted social support, criticising the government's priorities in the 2027 state budget.
Speaking at a press conference, Demetriou accused the government of lacking a coherent development strategy to tackle the rising cost of living and the challenges facing households and businesses.
While confirming that DISY will vote in favour of the budget, she made clear that the party will push strongly for changes and outlined 12 policy priorities for 2027.
“A large part of available resources was directed to those with less need. The government supported higher-income earners more and lower-income earners less,” Demetriou said.
She also expressed concern that economic policy is being pursued without a clear plan.
Cost of living remains a major challenge
Demetriou argued that inflationary pressures are not temporary, pointing to the continued burden of living costs, energy prices, housing expenses and high interest rates.
Despite positive economic indicators and continued fiscal stability, she said targeted policies are needed to strengthen disposable income and reduce everyday costs for citizens.
Presenting DISY's proposals, she described the government's fourth budget as more managerial than developmental, arguing that it fails to respond adequately to current economic and social challenges.
Public sector payroll under scrutiny
A central element of DISY's proposals is curbing rigid spending and improving the use of public resources.
Demetriou accused the government of opting for across-the-board increases, new recruitments and non-targeted measures instead of directing support to those most in need.
She highlighted the public sector wage bill as the largest non-flexible expenditure item, noting that it is expected to reach €3.7 billion in 2027 and exceed €4 billion in 2028.
According to Demetriou, the state payroll has increased by €1.38 billion over the past five years.
Referring to comments by DISY MP Savvia Orphanidou, she argued that such figures reflect misplaced priorities.
“Should all this money have been given to citizens as relief measures for those who need it most? Were all these positions really the state's absolute priority during a period of high living costs and such serious and complex challenges? I ask that rhetorically.”
DISY's proposals
DISY is calling for greater investment in:
- Digitalisation of the public sector.
- Research and innovation.
- Productivity-enhancing reforms.
- Reduction of bureaucracy.
- Improved services for citizens and businesses.
The party is also seeking faster implementation of major development projects and infrastructure works, arguing that these would boost employment, competitiveness, reduce traffic congestion and lower transport costs.
Energy and transport measures
Among DISY's energy proposals are:
- Expansion of energy storage systems.
- More photovoltaic installations, particularly for vulnerable groups and small businesses.
- Greater investment in energy-efficiency measures for buildings and equipment.
The party also proposes:
- More electric vehicle charging infrastructure.
- Incentives for scrapping older vehicles.
- Expansion of school bus services.
- Measures encouraging remote working.
Tax, pensions and social support
DISY's social and fiscal priorities include:
- Introduction of a family tax-free income allowance.
- Tax relief for middle-income families.
- Completion of tax reform.
The party is also calling for:
- Pension reform involving provident funds.
- Safeguarding the sustainability of the Social Insurance Fund.
- Reducing the number of low pensions without increasing the burden on the middle class.
Housing, education and vulnerable groups
Additional proposals include:
- Further measures to address the housing crisis.
- Universal all-day schooling.
- Improvements to childcare subsidy schemes.
- Support for the primary sector, which is facing rising production costs, irrigation water shortages and the effects of foot-and-mouth disease.
DISY is also seeking increased:
- Child benefit payments.
- Student grants.
- Support for low-income pensioners.
- Assistance for single-parent families.
- Support for people with disabilities.
