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Cyprus Labor Committee Demands Overhaul Of Child Benefit Legislation

Government Under Scrutiny Over Social Exclusions

The House Labor Committee has renewed its call for a comprehensive revision of the child benefit legislation, urging both the government and the Sub-Ministry of Welfare to reform the existing framework. This initiative follows concerns voiced by the Child Rights Protection Inspector, who highlighted key flaws in the current system. Specifically, the residency requirement confined to designated zones in the Republic of Cyprus is effectively excluding many families from receiving critical social benefits.

Inadequate Policies Under Fire

Committee Chair and AKEL MP Andreas Kavkaliás criticized the prevailing legal structure, asserting that it fosters social exclusion by denying families access to benefits closely tied to child welfare—ranging from tuition support to various service discounts. According to Kavkaliás, social policies should focus on the needs of children rather than penalizing families based on the duration of their residence in the country.

Pressure Mounts For Immediate Legislative Amendments

In a decisive move, members of the committee have pressed the government for swift and meaningful legislative changes. Lawmakers have also signaled their readiness to submit a formal legislative proposal should there be an inadequate official response.

Political Divides Emerge

Notably, dissent within the political spectrum has surfaced. ELAM MP Sotiris Ioannou argued that the current benefits system unfairly favors non-nationals such as foreigners and Turkish-Cypriots, cautioning that this approach could inflate costs and ultimately diminish the benefits available for Cypriot citizens. In response, his party is preparing to file a proposal that would limit benefits exclusively to Cypriot nationals.

Addressing Injustices For Returning Cypriots

Adding to the debate, MP Andreas Apostolou condemned what he described as a severe injustice against Cypriots repatriating from non-European nations. Apostolou has secured a meeting with officials from the benefit service and has committed to presenting a legislative proposal by October. His initiative aims to ensure that returning Cypriot families receive child benefit payments from the very first day of their arrival.

DISY Calls For Faster AI Adoption In Cyprus To Boost Business Competitiveness

Cyprus needs to move beyond announcing artificial intelligence ambitions and focus on integrating the technology into businesses, public services and the wider economy, Democratic Rally (DISY) president Annita Demetriou said.

Speaking at a press conference titled “Artificial Intelligence, Competitiveness and Economic Growth”, Demetriou warned that Cyprus risks falling behind despite strong public interest in AI.

Cyprus Faces An AI Adoption Gap

More than four in 10 people in Cyprus used AI in the previous year, placing the country among Europe’s leaders in individual adoption. However, local businesses rank near the bottom in AI use, while citizens also lag in advanced digital skills.

“The problem is not the people or the businesses. It is the policy gap. And policy must close it,” Demetriou said.

She criticised the government’s ambition to make Cyprus a regional AI hub, arguing that it lacks sufficient planning for energy demand, clear budget commitments and effective workforce reskilling measures.

Six Priorities To Accelerate AI Adoption

DISY outlined six priorities to turn AI into a driver of economic growth:

  1. Reskill Workers: Establish funded training programmes supported by tax incentives.
  2. Support Businesses: Offer tax incentives and exemptions to encourage AI integration.
  3. Attract Investment: Bring international companies with significant AI operations to Cyprus.
  4. Modernise Public Services: Connect government systems, reduce bureaucracy and improve services.
  5. Secure Affordable Energy: Ensure sufficient capacity and competitive electricity prices for digital infrastructure and data centres.
  6. Protect Rights: Safeguard personal data, privacy and human rights through effective oversight.

“Our answer is not to stop technology. Our answer is to ensure no one is left behind. Reskilling becomes a social policy priority,” Demetriou said.

Public-Sector Reform Is Essential

Konstantinos Mountoukkos, who oversees digital policy, research and innovation on DISY’s Council for Monitoring Government Work, argued that AI adoption requires changes to public administration, not just new technology.

He called for secure interoperability between government systems, a move from pilot projects to practical implementation and stronger safeguards against inaccurate outputs, privacy breaches and cybersecurity threats.

Mountoukkos also urged the government to modernise technology procurement. Digital projects should have clear objectives, timelines and measurable results, including their cost, time savings and impact on public services.

Skills Will Determine Cyprus’s Competitiveness

Michalis Ioannidis, head of DISY’s Council for Monitoring Government Work, described AI adoption as a social policy priority. DISY spokesperson Onoufrios Koullas warned that without adequate training, Cyprus could lose ground in workforce productivity and economic competitiveness.

The party said it would present further proposals on managing the risks associated with AI and digital life at a future press conference.

The central challenge for Cyprus is to turn public interest in AI into wider business adoption, a more skilled workforce and measurable improvements in public services.

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