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Cyprus Mulls Ending Gas Import Monopoly To Address Energy Challenges

by THEFUTURE.TEAM

August 30, 2024

Cyprus is contemplating the termination of its state-controlled gas import monopoly in a bid to resolve persistent energy challenges and inefficiencies in the market. The proposal aims to introduce private sector competition in the natural gas import sector, potentially leading to lower energy costs and a more efficient market structure. This move could also expedite Cyprus’s shift towards greener energy by fostering a more dynamic and competitive environment. The decision forms part of a broader strategy to modernize the island’s energy landscape and bolster energy security.

The idea of ending the monopoly is seen as a crucial step in addressing the current energy deadlock that has hindered the country’s progress in achieving a stable and affordable energy supply. With the state monopoly in place, the energy market has faced limitations that have slowed down the adoption of more sustainable energy practices and kept energy prices relatively high. By allowing private entities to participate in gas imports, Cyprus hopes to create a more competitive market that can better respond to the demands of consumers and the global energy market.

Additionally, opening up the gas market could attract foreign investment, further stimulating the economy and providing the necessary capital for energy infrastructure projects. This shift could also lead to a diversification of energy sources, reducing the country’s reliance on imported fossil fuels and supporting its environmental commitments.

The potential policy change comes at a time when many countries are reevaluating their energy strategies in light of global economic pressures and the urgent need to address climate change. For Cyprus, the end of the gas import monopoly could mark a significant turning point in its energy policy, aligning the country more closely with European Union energy market regulations and sustainability goals.

Illegal Employment on the Rise in Cyprus as Undeclared Work Declines

by THEFUTURE.TEAM

September 16, 2024

A recent report on the labour market in Cyprus has revealed a worrying increase in illegal employment, even as the rate of undeclared work shows signs of decline. The findings, which were discussed during a parliamentary session, have raised concerns among lawmakers and authorities alike about the ongoing challenges in combating labour exploitation and maintaining fair employment practices.

According to data presented by the Ministry of Labour, the issue of illegal employment—workers being hired without proper work permits or contracts—has escalated in recent months. This rise comes at a time when efforts to reduce undeclared work, where employees are not registered or insured, have seen moderate success. Despite progress in regulating the labour market, illegal employment remains a significant issue, especially in industries such as construction, agriculture, and hospitality.

Understanding the Distinction Between Illegal and Undeclared Employment

Illegal employment refers to the hiring of individuals who are not legally permitted to work, often due to their immigration status or lack of proper documentation. These workers are typically vulnerable to exploitation, receiving lower wages and lacking access to basic protections such as healthcare and social security benefits. In contrast, undeclared work involves the employment of individuals who may be legally allowed to work but are not officially registered, depriving them of insurance coverage and other legal protections.

While authorities have made strides in reducing undeclared work, particularly through stricter inspections and penalties, the rise in illegal employment presents a new challenge. Lawmakers pointed out that illegal employment poses even greater risks, as it not only harms the workers involved but also undermines the integrity of the labour market and contributes to unfair competition among businesses.

Factors Driving Illegal Employment

Several factors contribute to the increase in illegal employment, according to the Ministry of Labour. One key driver is the influx of migrant workers, many of whom lack the necessary documentation to work legally in Cyprus. Without proper channels for legal employment, these individuals often turn to unregulated jobs where they are vulnerable to exploitation.

The growing demand for cheap labour, particularly in sectors like construction and agriculture, also plays a significant role. Employers seeking to cut costs may resort to hiring illegal workers, bypassing the legal requirements for contracts, wages, and benefits. This practice not only puts workers at risk but also creates an uneven playing field, where businesses that comply with legal standards struggle to compete with those exploiting illegal labour.

Efforts to Combat Illegal Employment

In response to these findings, the government has pledged to intensify its efforts to combat illegal employment. This includes increasing inspections, imposing harsher penalties on employers found guilty of hiring illegal workers, and strengthening collaboration with immigration authorities. Additionally, there is a push to create more pathways for legal employment for migrant workers, ensuring they can enter the labour market with proper documentation and protections.