Economy and cost of living the main reasons Cypriots voted in this years European elections

by THEFUTURE.TEAM

October 4, 2024

The economic situation and rising prices and cost of living were the main topics that motivated Cypriots to vote in the last European elections in June this year, according to a post-electoral survey published by the European Parliament.

These were also the two main reasons for voting on the EU level (42% for cost of living and 41% for the economic situation), but the shares were much larger in Cyprus where the economic situation led with 56%, followed by rising prices and cost of life with 47%.

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The third most popular reason in Cyprus was migration and asylum (45%, compared to 38% and sixth place in the EU average), followed by education in fourth place (26%, compared to 13% in the EU) and democracy and rule of law in fifth place (24%, compared to 32% and fourth place in the EU).

The international situation was in sixth place for Cypriots tied with the defence and security of the EU (21%), while on average in the EU the global situation was picked in third place with 34% and defence and security in seventh place with 28%.

Those who did not vote in Cyprus said the cost of living (53%), migration and asylum (45%) and the economic situation (42%) could have motivated them to participate in the elections.

The European Parliament post-electoral survey across the EU was conducted between June 13th and July 8th 2024, with a total of 26,349 face-to-face interviews. In Cyprus, the survey was conducted from June 13th to July 5th, and a total of 506 face-to-face interviews.

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ECB Raises Deposit Facility Rate For First Time In Nearly Two Years

by THEFUTURE.TEAM

June 15, 2026

Economic Shift: ECB Reverses Years Of Declining Rates

The European Central Bank (ECB) confirmed its first interest rate increase in nearly two years, raising the deposit facility rate in response to inflationary pressures and geopolitical uncertainty. Marking a shift in monetary policy, the move follows a period of rate cuts aimed at supporting economic activity and easing financing conditions.

Reevaluation Of Bank Liquidity Strategies

Although the immediate impact will be felt by only part of the borrowing market, the decision carries broader implications for banks. During the period of lower rates, banks maintained significant amounts of excess liquidity with the ECB as returns on these funds declined alongside deposit rates. With the deposit facility rate increasing by 0.25 percentage points to 2.25% from 2.00%, returns on surplus liquidity are expected to improve.

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Higher interest rates, however, could also increase borrowing costs and influence lending conditions across the banking sector.

Transitioning Investment Approaches And Market Dynamics

Banks had already begun diversifying the use of excess liquidity through investments in bonds and by expanding lending activities.

Successive reductions in the deposit facility rate from 3.00% at the end of 2024 through four consecutive cuts in early 2025 reflected a more accommodative policy stance as inflation pressures moderated.

Sectoral Impact And Future Outlook

Data from the ECB’s 2025 monetary policy report show that liquidity in the Cypriot banking system declined from €19.2 billion at the end of 2024 to €18.6 billion by the close of 2025. Despite the reduction, liquidity levels remained elevated. Outstanding loans increased from €27.6 billion to €31.7 billion, while deposits recorded a slight decline. Customer deposits continued to account for the vast majority of funding. By the fourth quarter of 2025, they represented 95% of total liabilities, highlighting their importance as the banking sector’s primary source of financing.

Changes in ECB rates are expected to influence how banks manage liquidity and allocate capital as monetary conditions evolve.

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