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ECB To Revise Monetary Policy Strategy Post-Summer

The European Central Bank (ECB) is preparing for its next strategic review of monetary policy, set to begin after the summer holidays in August. This revision, conducted in collaboration with the 20 national central banks of the eurozone, aims to shape future actions on interest rates and crisis responses. Unlike the extensive 2021 review, this assessment will likely be shorter and more focused, incorporating lessons from recent economic crises and inflation dynamics.

The ECB’s previous review in 2021 redefined price stability and influenced policy implementation, maintaining a symmetrical 2% inflation target. As the ECB navigates post-crisis policy adjustments, this forthcoming review will address new economic challenges, including supply chain disruptions, geopolitical uncertainties, and structural changes like climate change and population ageing.

Significant attention will be given to the ECB’s flexibility in policy responses and the effectiveness of its tools, such as quantitative easing. The review will also consider enhancing communication strategies to better address economic forecasts and investor expectations.

With a clear timeline and preparatory steps underway, the ECB aims to present its findings by the second half of 2025. This strategic review underscores the ECB’s commitment to evolving its monetary policy framework to ensure economic stability and growth across the eurozone.

New Decrees For Blue Card And Foreign Students: Key Changes And Implications

The Ministry of Labor and Social Insurance has announced a series of new measures aimed at addressing the increasing demands of Cyprus’ labor market. These initiatives are designed to attract highly skilled professionals from third countries and broaden employment opportunities for foreign students in select fields, as outlined in the recent Decrees published in the Official Gazette of the Republic.

Attracting Skilled Professionals

One of the key updates is the introduction of a minimum annual salary for foreign professionals, which has been set at €43,632, 1.5 times the average gross annual salary in Cyprus. This salary threshold applies to individuals coming to work in sectors such as Information and Communication Technologies (ICT), pharmaceuticals for research purposes, and maritime industries (excluding skippers and crew).

Expanded Employment Options For Foreign Students

The new regulations also provide an update on the employment rights of foreign students. From December 2024, students from third countries will be able to work in Cyprus, with the new rules replacing the previous March 2024 start date.

Students studying ICT who have completed their first academic semester will be eligible to work in occupations related to their field of study, thereby gaining practical experience while pursuing their education.

In response to critical sector shortages, the regulations also clarify the specific occupations and salaries that Blue Card holders—third-country nationals—will be eligible for in Cyprus. The Blue Card, in line with the European Directive, allows highly skilled professionals to live and work in EU member states.

Strengthening The Labor Market and Economy

These updates are expected to bolster the supply of specialized workers in key sectors, addressing existing gaps and promoting the continued growth of Cyprus’ economy. At the same time, the new measures offer foreign students enhanced opportunities for professional development, facilitating their seamless integration into the country’s workforce.

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