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Cyprus Faces Democratic Headwinds: A Closer Look At The 2024 Global Democracy Index

Cyprus has slipped three places to rank 40th out of 167 countries in the 2024 Global Democracy Index, a stark signal of the challenges facing modern democracies worldwide. Developed by the Economist Intelligence Unit, the index classifies Cyprus as a “flawed democracy”—a label shared with nations like Malta, France, the US, Israel, and Serbia. While Cypriots enjoy robust electoral processes and civil liberties—with scores of 9.17 and 8.82, respectively—there are glaring weaknesses. Cyprus’ functioning of government languishes at just 5.36, the lowest among the top 50 nations, reflecting persistent gridlock, corruption, and a growing disconnect between elected officials and the public.

The Anatomy of Democratic Decline

The index, which evaluates countries across five dimensions—electoral process and pluralism, functioning of government, political participation, political culture, and civil liberties—reveals that despite high scores in voting and individual rights, Cyprus faces significant hurdles in governmental performance. Experts warn that outsourcing decision-making to non-elected bodies, from central banks to courts, has further eroded public trust. As citizens feel increasingly disenfranchised, confidence in democratic institutions continues to wane, casting doubts on the ability of traditional systems to deliver effective governance.

Global Context and Regional Comparisons

The broader global picture is equally concerning. Out of 167 countries, 83 registered declines in democratic performance in 2024, while only 37 showed improvement. With over 39% of the world’s population now living under authoritarian regimes—a figure on the rise—many advanced democracies are struggling to meet citizens’ expectations. Western Europe, despite boasting the highest average scores and a quick recovery to pre-pandemic levels, is not immune. Recent elections across the region have highlighted a backlash against incumbents, as voters increasingly lean towards anti-establishment and populist parties.

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Norway, New Zealand, Sweden, Iceland, and Switzerland continue to set the gold standard as “full democracies,” while at the opposite end, conflict-ridden and authoritarian states like Afghanistan, Myanmar, North Korea, the Central African Republic, and Syria illustrate the extremes of democratic decay.

Implications for Cyprus

For Cyprus, the numbers are a mixed bag. With an overall score of 7.38—down three places from last year—and a rank of 22nd among the 27 EU member states, the country excels in electoral processes but lags in effective governance. This imbalance could further undermine public trust, especially if political leaders fail to engage citizens meaningfully in decision-making processes. The report underscores that formal democratic institutions alone are insufficient; a vibrant, responsive democracy demands an active, engaged electorate and leadership that genuinely addresses the concerns of its people.

Looking Forward

The 2024 Democracy Index serves as a wake-up call: while Cyprus retains strengths in ensuring free and fair elections, urgent reforms are needed to enhance governmental performance and restore public confidence. As the global democratic fabric continues to fray—with more than one-third of the world’s population under authoritarian rule—the challenge for Cyprus is clear. Addressing inefficiencies, increasing transparency, and fostering genuine citizen participation are not just ideals but imperatives for a resilient future.

Cyprus’ democratic journey, much like its economic and technological endeavors, will depend on its ability to evolve and meet the expectations of a modern society. In a rapidly changing world, ensuring that democracy delivers tangible benefits to citizens is the ultimate measure of success.

Strained Household Finances: Eurostat Data Reveals Persistent Payment Delays Across Europe and in Cyprus

Improved Financial Resilience Amid Ongoing Strains

Over the past decade, Cypriot households have significantly increased their ability to manage debts—not only bank loans but also rent and utility bills. However, recent Eurostat data indicates that Cyprus continues to lag behind the European average when it comes to covering financial obligations on time.

Household Coping Strategies and the Limits of Payment Flexibility

While many families are managing their fixed expenses with relative ease, one in three Cypriots struggles to cover unexpected costs. This delicate balancing act highlights how routine payments such as mortgage installments, rent, and utility bills are met, but precariously so, with little room for unplanned financial shocks.

Breaking Down Payment Delays Across the European Union

Eurostat reports that nearly 9.2% of the EU population experienced delays with their housing loans, rent, utility bills, or installment payments in 2024. The situation is more acute among vulnerable groups: 17.2% of individuals in single-parent households with dependent children and 16.6% in households with two adults managing three or more dependents faced payment delays. In every EU nation, single-parent households exhibited higher delay rates compared to the overall population.

Cyprus in the Crosshairs: High Rates of Financial Delays

Although Cyprus recorded a notable 19.1 percentage point improvement from 2015 to 2024 in delays related to mortgages, rent, and utility bills, the island nation still ranks among the top five countries with the highest delay rates. As of 2024, 12.5% of the Cypriot population had outstanding housing loans or rent and overdue utility bills. In contrast, Greece tops the list with 42.8%, followed by Bulgaria (18.7%), Romania (15.3%), Spain (14.2%), and other EU members. Notably, 19 out of 27 EU countries reported delay rates below 10%, with Czech Republic (3.4%) and Netherlands (3.9%) leading the pack.

Selective Improvements and Emerging Concerns

Between 2015 and 2024, the overall EU population saw a 2.6 percentage point decline in payment delays. Despite this, certain countries experienced increases: Luxembourg (+3.3 percentage points), Spain (+2.5 percentage points), and Germany (+2.0 percentage points) saw a rise in payment delays, reflecting underlying economic pressures that continue to challenge financial stability.

Economic Insecurity and the Unprepared for Emergencies

Another critical indicator explored by Eurostat is the prevalence of economic insecurity—the proportion of the population unable to handle unexpected financial expenses. In 2024, 30% of the EU population reported being unable to cover unforeseen costs, a modest improvement of 1.2 percentage points from 2023 and a significant 7.4 percentage point drop compared to a decade ago. In Cyprus, while 34.8% still report difficulty handling emergencies, this marks a drastic improvement from 2015, when the figure stood at 60.5%.

A Broader EU Perspective

Importantly, no EU country in 2024 had more than half of its population facing economic insecurity—a notable improvement from 2015, when over 50% of the population in nine countries reported such challenges. These figures underscore both progress and persistent vulnerabilities within European households, urging policymakers to consider targeted measures for enhancing financial resilience.

For further insights and detailed analysis, refer to the original reports on Philenews and Housing Loans.

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