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Government Achievements: Employment Surge And Falling Unemployment In Cyprus

The Cypriot government has achieved remarkable success in bolstering employment and reducing unemployment, according to Labour and Social Insurance Minister Yiannis Panayiotou. Over the past two years, employment in Cyprus has soared by 4.3%, reaching an all-time high of 79.8% in 2024, while unemployment has plummeted by 21%, settling at 4.9%.

Impactful Policies And Future Goals

During a comprehensive press conference on April 15, Minister Panayiotou highlighted the government’s dedication to a human-centric policy. Key outcomes include not only increases in employment and skilled workforce development but also a significant boost in average wages. For comparison, the national employment target of 80% by 2030, part of the European Pillar of Social Rights, is anticipated to be achieved as early as 2025.

Furthermore, noteworthy strides have been made in empowering women and youth in the workforce, hitting unprecedented employment figures for these groups. The youth employment rate, now at 87%, represents a historical peak.

Sustainability And Economic Growth

Skill development focusing on green and digital education has been amplified, with training programs expanding almost sevenfold. The surge in average wages—rising to just under €2,500 in 2024 from approximately €2,000 in the previous decade—demonstrates substantial economic growth. Meanwhile, the government has ensured that wage increases surpass inflation, thereby improving living standards.

Additionally, the government’s decision to raise the minimum wage to €1,000 further exemplifies its commitment to economic stability and social cohesion.

As Cyprus continues to shape its future, the government’s policies are undeniably building a solid foundation for a prosperous and sustainable economy.

Digital Euro Moves Forward In EU Push For Payment Independence

Strengthening Strategic Autonomy

At an event held at the House of the Euro in Brussels on April 22, central bank officials discussed the role of a digital euro in strengthening the European Union’s financial independence. Participants included Stelios Georgakis, Payments Supervision Director at the Central Bank of Cyprus, and Joachim Nagel, President of the Deutsche Bundesbank.

Redefining Central Bank Role In A Digital Era

Nagel stated that the digital euro is no longer viewed solely as a technical development but also as part of a broader policy direction. He emphasized the need to strengthen Europe’s payment infrastructure to ensure resilience and independence. The digital euro is intended to complement cash rather than replace it, maintaining the role of central bank money in a more digital financial system.

Reducing Dependence On Non-European Infrastructure

According to Nagel, around two-thirds of card payments in Europe currently rely on non-European systems. This reliance is seen as a structural vulnerability. A digital euro could help reduce this dependency by supporting a more integrated and locally controlled payments framework.

Legislative Roadmap And Timeline

Looking ahead, Nagel expressed a strong optimism regarding the legislative process, suggesting that completion could occur by year‑end. This progress may set the stage for the first issuance of the digital euro as early as 2029, in alignment with Europe’s broader ambitions for financial resilience and technological advancement.

Comprehensive Payments Strategy

During the discussion, Georgakis outlined the European Central Bank’s approach to payments. The strategy combines retail and wholesale systems, including instant payments, a digital euro, and infrastructure based on distributed ledger technology. Improving cross-border payment efficiency remains a key objective.

Transforming Europe’s Financial Landscape

The discussion reflected alignment between central banks, policymakers, and other stakeholders on the direction of Europe’s payment systems. Development of a digital euro is positioned as part of a broader effort to strengthen financial infrastructure, support economic resilience, and maintain the euro’s role in a changing global environment.

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