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Non-EU Citizens Face Elevated Part-Time Employment in the EU, Eurostat Data Shows

Overview of Disparities

Recent Eurostat data has underscored persistent employment discrepancies among different citizenship groups within the European Union. In 2024, non-EU citizens were markedly more likely to be employed part-time compared to both intra-EU nationals and those residing in their country of origin. Specifically, non-EU nationals made up 22.2% of part-time workers aged 20–64, while mobile EU citizens constituted 20.8%, and nationals residing in their own country recorded a lower rate of 16.6%.

Decade-Long Trends and Convergence

Over the past decade, EU nationals have consistently exhibited the lowest rates of part-time employment. However, all groups have experienced a decline in their part-time employment shares since 2014. Notably, the convergence between non-EU citizens and mobile EU citizens has accelerated, with the decline among non-EU nationals narrowing the gap between these groups. This trend reflects a broader shift in employment patterns and raises questions about labor market integration and policy implications.

Gender Disparities in Employment Patterns

The data also reveals pronounced gender disparities across all citizenship groups. Among mobile EU citizens, 35.8% of women held part-time jobs compared to just 7.9% of men. Similarly, for non-EU nationals, 36.8% of women were employed part-time, in contrast to 11.8% of men. For nationals residing in their home countries, 27.0% of women worked part-time while the rate for men was a mere 7.4%. These figures highlight a critical, ongoing gender imbalance in work arrangements within the EU.

The Cyprus Labor Market Scenario

Cyprus presents a unique case in the broader EU labor landscape. Non-EU workers are becoming increasingly integral to the Cypriot labor market. As of December 2024, data from Trading Economics indicated that 73.3% of non-EU nationals aged 20–64 were active in employment. Demographically, non-EU residents account for approximately 24% of the population, while intra-EU nationals represent around 11%, according to both the European Commission and the Robert Schuman Foundation. Although Cyprus’s overall part-time employment rate stands at a modest 7.6%, migrant workers—especially non-EU citizens—are disproportionately represented in part-time and temporary roles.

Implications for Policy and Future Research

The disparities in part-time employment among non-EU nationals, mobile EU citizens, and home-country nationals underscore the need for nuanced labor market policies. Addressing these discrepancies will be essential for ensuring fair employment practices and enhancing economic integration across the EU. As policymakers and business leaders assess the implications of these trends, further research and targeted interventions may prove crucial in bridging the existing gaps.

Cyprus Foreclosure Reform Debate Intensifies Amid Rising Non-Performing Loans

Political Stakes And Foreclosure Regulation

Cypriot political parties are engaging in a high-stakes debate in parliament as they deliberate changes to the legal framework governing foreclosures ahead of the May parliamentary elections. The proposed shifts are aimed at curbing the rapid escalation in the value of non-performing loans, a trend that has sparked significant public and legislative concern. Confidential data from the Central Bank of Cyprus indicates that the nation has not yet moved away from its longstanding issues related to so-called “red loans.”

Non-Performing Loans: A Mounting Financial Challenge

Recent figures show that the value of distressed loans has continued to rise, surpassing €20 billion following transfers involving banks and credit recovery companies. This level exceeds the approximately €15 billion recorded during the economic crisis period. Central Bank data indicates that after loan sales, credit recovery firms now manage portfolios totaling €19.7 billion, of which €18.5 billion are classified as non-performing. About 87% of these loans are considered terminated, while the firms acquired 141,478 loans for €3.2 billion, roughly 80% below their original value.

Credit Recovery Companies: Overshooting Investment Returns

By June, credit recovery companies had recovered €5.7 billion through a combination of cash repayments, judicial asset auctions and property-for-debt exchanges. Cash repayments accounted for €3.6 billion, judicial recoveries contributed €619 million, and property swaps added €1.5 billion. These recoveries exceeded the original purchase cost of many loan portfolios while overall balances continued to increase due to accrued interest, a development that remains a concern for policymakers.

Bank Portfolios And The Impact On Financial Stability

Data from the State Guarantee Fund for Deposits and Loans shows that 77,561 loans valued at €7.5 billion were transferred, leaving a remaining balance of €5.7 billion by June 2025, of which €5 billion are non-performing. Within the banking sector, non-performing loans totaled €1.45 billion across 24,736 accounts as of last June. Since December 2024, these figures have improved by approximately €86 million due to repayments and asset recoveries. The reduction in problematic loans has lowered bank exposure compared with levels recorded during the 2013 crisis.

Legislative Proposals And Government Considerations

Political leaders argue that adjustments to foreclosure procedures can be introduced without undermining banking stability. Parliament’s Economic Committee is scheduled to begin discussions on March 9, with an estimated 20 to 30 legislative proposals currently pending from multiple parties. While the Ministry of Finance has not announced immediate legislative action, officials are evaluating the potential reintroduction of elements of the Rent-Versus-Rate plan for vulnerable borrowers, subject to fiscal impact assessments.

Advocacy From AKEL And Environmental Groups

Proposals supported by the AKEL party and several civil organizations focus on strengthening legal protections for borrowers. Among the suggested measures is restoring the right to seek judicial relief to delay foreclosures in cases involving disputed charges or alleged abusive contract clauses. AKEL representative Aristos Damianou criticized the pace of foreclosure proceedings and warned of risks to primary residences and small businesses.

Proposals Targeting Guarantors And Foreclosure Processes

The Democratic Rally party has introduced a proposal aimed at limiting guarantor liability during foreclosure procedures. Under the draft measure, if a property is auctioned or repossessed, the guarantor’s responsibility would be capped at the original loan amount adjusted by recovered sums. The proposal also requires that enforcement actions against guarantors be suspended until a court ruling is issued if the borrower formally disputes the debt.

Revisions Proposed By The Democratic Party of Cyprus

The Democratic Party is also preparing new legislative measures to be introduced on Thursday. Party leader Mario Karogian outlined plans to suspend the foreclosures of primary residences valued up to €350,000 until the end of the year, allowing time to address legislative gaps. Additional proposals include broadening the powers of the Financial Ombudsperson to make binding decisions on disputes up to €50,000, enforcing the Central Bank’s code of conduct, and ensuring strict adherence to refinancing guidelines for first residences.

Outlook And Strategic Implications

The range of proposals reflects an ongoing effort to balance financial system stability with stronger consumer protections. Decisions made in the coming months are expected to shape the regulatory environment for foreclosures and influence broader confidence in Cyprus’ financial sector and economic outlook.

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