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European Court Of Human Rights Rejects Claims Over Cyprus Public Sector Pay Cuts

The European Court of Human Rights (ECtHR) has dismissed five claims submitted by 450 public and related sector employees and retirees from Cyprus. The cases, filed under Constantinou and Others v. Cyprus, challenged the constitutionality of measures enacted during the economic crisis, including pay and pension deductions. The decision is of particular importance in the context of the nation’s public finances.

Details Of The Case

The claimants contested the constitutional validity of Law 168(I)/2012 and Law 112(I)/2011. These laws mandated temporary cuts and extraordinary contributions on salaries and pensions for public sector employees. Prior to reaching the ECtHR, similar appeals had been rejected by Cyprus’s Supreme Court, adding weight to the contested decisions.

Claims And Legal Arguments

The litigants argued that the measures violated their right to property (as provided by Article 1 of Protocol No. 1) and their right to a fair trial (guaranteed by Article 6). Some claimants further alleged discrimination compared to their counterparts in the private sector.

Court’s Reasoning

The ECtHR found no basis for claims of unequal treatment. The court clarified that public sector employees are inherently distinct from private sector workers because their wages and pensions are directly linked to the state budget. In addressing the issue of a fair trial, the Court concluded that there was no deviation in the legal reasoning of the Supreme Court, the decisions of which were adequately substantiated.

Justification And Public Interest Considerations

While acknowledging that the pay and pension cuts did interfere with the right to property, the ECtHR emphasized several critical points:

  • The measures were enacted in accordance with national law;
  • They were upheld as constitutional by the Supreme Court;
  • They addressed a compelling public interest during an era of severe economic crisis;
  • The deductions were proportionate and implemented on a gradual basis;
  • They were designed to be temporary; and
  • A fair balance was maintained between the exigencies of public interest and the rights of the claimants.

Decision And Key Voices

The ruling, delivered by a majority of five judges, was accompanied by dissenting opinions from Judges Georgios Sergidis and Anna Adamska-Gallant. The case was argued on behalf of the General Public Prosecutor by the Senior Advocate of the Republic, Theodora Christodoulidou.

Implications For Cyprus

This decision underscores the judiciary’s deference to legislative measures implemented in times of crisis, illuminating how such measures are scrutinized against constitutional safeguards while balancing public interests. The ECtHR’s stance may influence future legislative actions regarding public sector finance amidst economic challenges.

For further context on the legislative measures in question, refer to pay and pension cut regulations.

doValue Cyprus Strengthens Market Leadership With New Astrobank Portfolio

Expanding Market Influence

Loan and real estate management firm doValue Cyprus has significantly reinforced its domestic presence in non-performing loan servicing by acquiring a new portfolio from Astrobank Public Company Limited. This development follows Astrobank’s recent transition, marked by the transfer of key operations to Alpha Bank Cyprus Limited and the subsequent surrender of its banking licence.

Strategic Acquisition And Swift Execution

Finalized on November 3, 2025, the agreement underscores a decisive strategic shift as doValue Cyprus assumes management of Astrobank’s remaining portfolio. The immediate commencement of portfolio management is a testament to the firm’s commitment to delivering specialized, resilient solutions within the non-performing loan market.

Expertise Driving Market Growth

Chief Executive Officer Varnavas Kourounas emphasized that the latest portfolio acquisition not only expands the firm’s operational footprint but also validates its credibility and deep expertise in the competitive Cypriot financial sector. The strategic move is aligned with the broader growth ambitions of the doValue Group.

Broader Market Implications

Operating as part of the international doValue Group—the largest independent loan and real estate management organization in Southern Europe—doValue Cyprus is well-positioned to leverage its newly expanded portfolio. With approximately €136 billion in assets under management, the group maintains a dominant presence across Italy, Greece, Spain, Portugal, and Cyprus. Moreover, its subsidiary, Altamira Real Estate, runs Cyprus’ largest real estate platform, managing extensive property portfolios alongside the island’s most comprehensive sales network.

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