Cypriot parliamentary committee debates cost of living measures amid government absence

On Tuesday, October 13, 2026, the Cypriot Parliamentary Committee on Commerce met to discuss strategies for addressing the rising cost of living. Representatives from various institutions, including the Central Bank, warned that non-targeted support measures could inadvertently exacerbate inflation by fueling demand. Central Bank spokeswoman Maria Papageorgiou noted that a European study found 31 percent of Cypriot households remain unaffected by current price pressures, urging the government to focus assistance solely on the most vulnerable groups.

The session was marked by tensions between the legislative and executive branches. Finance Minister Makis Keravnos did not attend, and Ministry Permanent Secretary Andreas Zachariades, who attended as his representative, left before the proceedings concluded. Committee Chairman and Disy MP Nikos Georgiou criticized the absence of political representation, stating it made a constructive discussion on the economy “extremely difficult.”

Zachariades argued that current inflation is driven primarily by external factors, such as energy and fuel costs. He defended existing government policies, including the five percent VAT on electricity, the reduction of fuel consumption taxes to EU-mandated minimums, and zero-VAT status for essential goods. He also cited ongoing institutional reforms, such as revisions to child benefits, student grants, tax reforms, and pension updates, as efforts to support household incomes amidst the ongoing economic challenges.