Cyprus Reviews Public Sector Reform And Working Conditions

by News Editor

August 4, 2026

The future of public sector reform, workplace conditions and the modernisation of government services were among the key issues discussed during a meeting on Tuesday between President Nikos Christodoulides, senior ministers and representatives of the civil servants’ union Pasydy.

The discussions brought together Finance Minister Makis Keravnos, Labour Minister Marinos Mousiouttas and Pasydy officials to review several outstanding issues affecting public sector employees and the operation of government services.

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Focus On Reform And Modernisation

Rather than seeking salary increases, Pasydy said its priority is improving the efficiency and quality of the public service. The union is calling for reforms that support digital transformation, clarify the status of permanent employees and create a more modern public administration for both citizens and businesses.

Pasydy General Secretary Stratis Mattheou described the meeting as constructive, adding that discussions with the Ministry of Finance will continue as work on the proposed reforms moves forward.

Concerns Over Public Infrastructure

The union also highlighted the condition of some government buildings, particularly those housing social welfare services, arguing that parts of the public sector continue to operate in facilities that fall well below acceptable standards. Mattheou described some workplaces as resembling “third world” conditions.

While plans already exist to gradually replace or upgrade government buildings, he acknowledged that implementation will depend on future state budgets and cannot happen immediately.

Next Steps

A joint working group comprising representatives from the Ministry of Finance, the Public Service Commission and Pasydy is expected to submit its recommendations on public sector reform to the president by the end of September.

Other outstanding issues discussed during the meeting are expected to be addressed before the end of the year, as consultations between the government and the union continue.

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Bank Of England Holds Rates At 3.75% In Split Vote As Inflation Risks Rise

by THEFUTURE.TEAM

September 17, 2026

The Bank of England kept its benchmark interest rate at 3.75% on Thursday, but the decision was not unanimous. In a 6-3 vote, the Monetary Policy Committee kept rates unchanged, while three members backed a 25-basis-point increase to 4%. Renewed energy price pressures have added to concerns that inflation could remain elevated.

Inflation Pressures Remain

Policymakers said inflation “is likely to rise further over coming quarters,” citing higher and more volatile crude oil and refined energy prices since the conflict began.

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So far, there has been “little evidence” of significant second-round effects, such as broader wage and price increases. Inflation risks, however, are now “tilted to the upside” and have increased since the July Monetary Policy Report.

Energy Prices Add To Inflation Risks

Brent crude has risen 36% since July, reaching $106 a barrel on Sept. 14, while UK wholesale gas prices increased 78% to 207 pence per therm.

Higher energy costs can feed into transport, production and household expenses, raising costs across supply chains. Refinery pressures have also pushed crack spreads, the difference between refined fuel and crude prices, well above pre-conflict levels.

Economy Shows Resilience

Despite the inflation risks, UK economic activity has held up slightly better than the Bank expected. A softer labor market and higher borrowing costs are expected to help reduce inflation over time.

Previous monetary tightening is still working through the economy, according to policymakers. So far, the latest energy shock has not produced clear evidence of a broader wage-price spiral.

Major Central Banks Take Different Paths

The decision comes during a busy period for global monetary policy. The Federal Reserve raised rates Wednesday to 3.75%-4% in its first increase since 2023, while the European Central Bank recently lifted its deposit rate to 2.5%.

The Bank of Japan is due to announce its decision Friday, with markets expecting a rate increase. Thursday’s split vote shows that pressure for tighter policy remains within the Bank of England’s Monetary Policy Committee.

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