President Nikos Christodoulides has set his government’s sights on pension reform as the next major undertaking, with a clear target set for 2026. He stressed that economic growth must translate into tangible benefits for citizens.
Speaking to daily newspaper Phileleftheros, the president said: “Our next big goal is pension reform, with the aim of achieving a significant increase in pensions in 2026, starting in particular with low-income pensioners.”
Based on the groundwork already underway, this target will be met, Christodoulides said.
Minimum pension ‘unacceptable’
He described as unacceptable the fact that the minimum pension currently stands at around €510, noting that no one can live with such an income. He linked the planned reform to the country’s strong economic performance and responsible fiscal policy, which allow the government to strengthen social policies in a sustainable way.
Core priorities
Christodoulides outlined five core government priorities: a strong and resilient economy; security, including foreign policy, defence and migration; reforms, transparency and accountability with a focus on combating corruption and improving citizens’ daily lives through better health care; education; and housing policies. “This direction guides our decisions and our policies,” he said.
He placed particular emphasis on recent parliamentary decisions, calling the approval of education and tax reform “a very good day for Cyprus.” Both reforms, as he said, passed with strong majorities, despite earlier doubts about the government’s ability to secure legislative support.
Addressing reactions from trade unions, especially over the evaluation of teachers, the president made clear that the government would not retreat. He said reforms are designed in a targeted way to support families, the middle class and young people, and that the same resolve will continue.
On social spending, Christodoulides noted that social expenditure rose by 6% in 2024–2025, with a further 6% increase planned for 2026. He also highlighted investments in education, aiming for all primary schools to operate as optional full-day schools by 2028, and in health care, with more than €126 million allocated for new infrastructure.
Christodoulides also referred to migration policy, saying the situation has changed “radically,” with arrivals reduced by more than 80% and returns increased by over 60%. He said the “Cyprus model” is now discussed at European level.
Challenges: high electricity costs, housing and cost of living
At the same time, the president acknowledged ongoing challenges, including high electricity costs, housing and the cost of living. While inflation in Cyprus is now among the lowest in Europe, prices remain high, requiring measures to boost purchasing power and reduce basic expenses, he said.
Finally, Christodoulides pointed to reforms in institutions such as the Legal Service and Audit Office, as well as efforts to tackle organised crime.
“For the first time, cases are being systematically investigated where, for example, someone owns an expensive car while receiving a guaranteed minimum income,” he said, adding that such cases are now reaching the courts.
Source: CNA