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Cyprus Labor Costs Rise 3.8% As Growth Outpaces EU And Euro Area

by THEFUTURE.TEAM

September 17, 2026

Hourly labor costs in Cyprus rose 3.8% year on year in the second quarter of 2026, faster than the euro area and EU averages, according to Eurostat and the Cyprus Statistical Service (Cystat).

Labor Costs Rise Faster Than Regional Benchmarks

The 3.8% increase in Cyprus compared with 3.1% in the euro area and 3.2% across the EU. Both wage and non-wage costs contributed to the increase.

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Hourly wages and salaries rose 3.9% from the second quarter of 2025, while non-wage labor costs increased 3.6%, according to Cystat.

Growth Accelerates From The First Quarter

The annual increase also accelerated from 3.4% in the first quarter of 2026 and was slightly above the 3.7% recorded a year earlier.

Wage growth rose from 3.4% in the first quarter, while non-wage costs increased at a faster pace than the 3% recorded during the same period.

Labor Cost Index Continues To Rise

Cyprus’ unadjusted total labor cost index reached 121.87 in the second quarter, up from 119.43 in the previous quarter and 117.38 a year earlier. The index for wages and salaries rose to 122.20, compared with 119.79 in the first quarter and 117.64 in the second quarter of 2025.

The non-wage labor cost index stood at 120.48, up from 117.92 in the first quarter and 116.33 a year earlier. Cystat uses 2020 as the reference year, with an index value of 100.

Seasonally Adjusted Costs Rise 1%

On a seasonally adjusted quarter-on-quarter basis, total hourly labor costs increased 1% in the second quarter. Wages and salaries also rose 1%, while non-wage costs increased 0.9%.

The quarterly increases were stronger than those recorded in the second quarter of 2025, when total labor costs and wages and salaries each rose 0.6%, while non-wage costs increased 0.5%.

Business Economy Labor Costs Remain Elevated

Eurostat data also showed relatively strong labor-cost growth in Cyprus’ business economy. Annual growth reached 4.3% in the second quarter, compared with 4.4% in the first quarter and 4.1% a year earlier.

Across the euro area, business-economy labor costs increased 3% year on year, down from 3.3% in the first quarter and 4.5% a year earlier. Wage costs rose 3%, while non-wage costs increased 3.2%.

EU business-economy labor costs rose 3.1%, compared with 3.5% in the first quarter and 4.8% in the second quarter of 2025. Wage costs increased 3.1%, while non-wage costs rose 3.2%.

Construction Records Fastest Growth Across Main Sectors

Across the wider economy, hourly labor costs rose 3.1% in the euro area and 3.2% in the EU during the second quarter.

Construction recorded the fastest growth among the three main sectors in both regions. Costs increased 3.9% in euro-area construction, compared with 2.9% in industry and 3% in services, while the EU recorded increases of 3.9%, 3% and 3.1%, respectively.

Wage Growth Varies Across EU Economies

The largest annual increases in hourly wage costs were recorded in Bulgaria at 9.9%, Lithuania at 9.6% and Croatia at 8.9%. Luxembourg and Romania recorded the lowest increases at 1.8%, followed by France and Italy at 2.1%.

For non-wage costs, the largest increases were reported in other service activities at 5.7%, real estate activities at 4.9% and administrative and support services at 4.8%. Mining and quarrying recorded the smallest increase at 0.7%, followed by professional, scientific and technical activities at 1.6% and electricity, gas, steam and air conditioning supply at 1.7%.

Cyprus therefore entered the second half of 2026 with annual labor-cost growth above both regional benchmarks, while wage and non-wage costs continued to increase domestically.

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EU Agrees On Major Overhaul Of Financial Market Supervision

by THEFUTURE.TEAM

October 9, 2026

European Union finance ministers have reached agreement on a sweeping package designed to strengthen oversight of the bloc’s financial markets, in a move aimed at reducing fragmentation and improving the flow of capital across borders.

A Push To Deepen Capital Markets

The Market Integration and Supervision Package, or MISP, would grant the European Securities and Markets Authority direct supervision over major market operators that are currently regulated by national authorities. The reforms are intended to make Europe’s capital markets more integrated, more efficient and better able to channel savings into productive investment.

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According to the Irish presidency, the package is meant to help savings and investments move more freely across the European Union, improving access to finance for companies while giving households broader opportunities to earn returns on their savings.

What The Reform Would Change

Under the new framework, ESMA would take direct oversight of key trading venues, clearing houses, securities settlement bodies and crypto-asset service providers. The package would also establish a permanent, independent executive board within the regulator, strengthening its institutional capacity.

Market operators would be able to opt into a new EU-wide operating framework. In parallel, the reforms would seek to make national supervision more consistent and update rules governing trading, transaction completion, investment management and the use of blockchain technology.

Why The Agreement Matters

Supporters of deeper capital markets argue that Europe has long paid a price for regulatory inconsistency. While many rules are harmonised across the bloc, differences in enforcement and supervision have contributed to a patchwork system that can make cross-border investment slower and more costly.

A more integrated framework, proponents say, could lower costs for companies seeking funding and broaden the menu of investment options available to savers and institutional investors alike.

Outstanding Questions Remain

Despite the broad agreement, some important details remain unresolved. Trading venues operated by Deutsche Börse, the company behind the Frankfurt stock exchange, may remain outside ESMA’s direct supervision.

Euronews previously reported that Germany had secured an exemption for Deutsche Börse’s domestically focused trading venues, leaving part of the system under regional supervision. The latest announcement did not clarify whether that arrangement will stand.

A Step Forward For The Savings And Investments Union

Dutch Finance Minister Eelco Heinen welcomed the deal, calling it a major advance for the Capital Markets Union and saying Europe had made more progress in 10 months than in the previous 10 years.

The agreement is an important milestone in the Savings and Investments Union, the EU’s broader effort to channel more of Europeans’ savings into investments that can support growth, innovation and competitiveness across the bloc.