By Andromachi Sophocleous* Volt Co-president
At a time when inequality in Cyprus is widening and economic pressures weigh heavily on households, Volt has placed the economy at the very heart of its political agenda. We believe Cyprus urgently needs a new economic paradigm, fairer, more sustainable, and above all, grounded in the realities citizens face every day.
While economic success is often measured through complex indicators and GDP, people measure it by what remains in their pockets at the end of each month. And today in Cyprus, too many people work hard yet cannot escape poverty or live with any sense of security. Wages stagnate, the cost of living soars, and a generation of young people is locked out of the housing market. If politics is to mean anything at all, it must respond to these realities.
That is precisely what Volt has been doing. Over the past months, we have tabled a series of interventions on key economic matters, from the housing crisis to the government’s proposed tax reform, and the debate on the Cost-of-Living Allowance (CoLA). Our aim is to present a coherent economic vision for the country, offering pragmatic answers to pressing problems.
On housing, one of the most urgent challenges for young people, we propose tax incentives and disincentives for unused properties in urban and commercial zones to return to the market. We also advocate temporary restrictions on purchases of residential units by non-permanent residents. Our goal is clear: to secure affordable housing and rents for those who live and work in Cyprus.
On tax reform, our position is equally straightforward: Cyprus needs a fairer, more progressive tax system that ensures more just distribution, growth, and transparency. Among other things, we propose broadening the tax brackets in such a way that provides necessary relief to the middle class, benefits to small and medium-sized enterprises, and support for low-wage earners who are currently left out.
On CoLA, Volt’s stance is both principled and pragmatic. We fully support its continuation and expansion across all sectors of the economy. This is not just our position, it is also a priority of the European Union. Yet Cyprus lags far behind other member states in extending collective agreements. Our position is that CoLA should be granted in stages, based on measurable criteria such as salary levels. Low-wage workers, those hardest hit by inflation, must receive full protection. For higher incomes, adjustments may be partial or even zero at very high incomes. After all, high earners are less exposed in times of inflation, while low-wage workers are forced to cut back on essentials, often slipping perilously close to the poverty line.
But CoLA is only part of the wider picture. At Volt, we consistently emphasize robust workers’ rights, the centrality of quality of life, and modern policies that reflect today’s realities, from flexible working arrangements to a renewed focus on work-life balance.
Let's be clear: without addressing the structural challenges of energy and water, the cost of living will only rise further. Years of inertia by successive governments have left these issues unresolved. Our proposal is to radically rethink Cyprus’s approach, placing the climate crisis and sustainability at the center of solutions.
What sets Volt apart is not only the content of our proposals, but also our method. Cyprus faces 21st-century problems, and Volt is a 21st-century movement. We embrace rational thinking, evidence-based policymaking, and the pursuit of tangible results. The challenges before us are immense. Faced with widening inequality and mounting economic pressure, Cyprus cannot afford more of the same. It is time for a radical reimagining of how we structure our economy and our society. It is time for a new economic paradigm. Volt offers that vision: pragmatic and just. It is on this vision that we are ready to be judged in May 2026.
*Andromachi Sophocleous, Volt Co-president
