Cyprus Removed from EU’s Macroeconomic Imbalance List – What This Means

by News Editor

June 5, 2025

EU Lifts Cyprus from Macroeconomic Imbalance List

Breaking News: The European Commission’s 2025 Spring Package confirms that Cyprus is off the list of countries with macroeconomic imbalances. This achievement stems from a consistent decrease in external and private debt vulnerabilities, bolstered by solid economic growth.

Nevertheless, Cyprus still faces challenges in areas like innovation and the green transition. According to a senior EU official, “Economic growth in Cyprus remains robust despite a volatile global landscape.”

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Major improvements include public finances showing substantial surpluses and a swiftly declining public debt. Diversification efforts in Cyprus’ economy are finally yielding positive outcomes, complemented by enhanced performance across United Nations sustainable development indicators.

Yet, ten predominant challenges have been identified by the commission, warning of risks tied to increasing public expenditures and slight deviations from the fiscal trajectory set for 2025. A glaring issue is research and innovation investment, which falls short compared to the EU average, presenting a need for enhanced collaboration among universities, the financial sector, and businesses.

The commission suggests the development of Cyprus’s financial system beyond banking and emphasizes the need to raise financial literacy levels.

Moreover, Cyprus must intensify its push towards cleaner energy. The nation’s current over-reliance on fossil fuels and imported energy leaves it vulnerable. High electricity costs for domestic usage, alongside low environmental performance, underline the urgency for these reforms.

Notably, Cyprus stands as a low investor in climate change adaptation when set against the EU norm. Using resources from the Recovery and Resilience Facility, Cyprus could address these critical areas swiftly.

Looking to the future, Cyprus is urged to enhance its labor market conditions. Youth engagement in vocational training and education in STEM fields need nurturing to tackle skill mismatches.

Though recent economic achievements mark progress for Cyprus, the commission stresses the importance of continued vigilance and reform to ensure lasting stability and prosperity.

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

by THEFUTURE.TEAM

November 22, 2025

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.

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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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