Government Considers Extending Relief Measures For Households And Businesses

In response to ongoing economic pressures, the Cypriot government is poised to extend key relief measures aimed at alleviating the financial burden on households and businesses. During a meeting on 19th June 2024, the Cabinet will decide on the continuation of a zero VAT rate on essential goods and the extension of subsidies to offset energy costs. These measures, initially set to expire on 30th June 2024, may be prolonged for an additional two months, subject to review and recommendations from the European Commission.

Zero VAT and Energy Cost Relief

The zero VAT rate on essential goods has been a critical policy tool in mitigating the impact of inflation on everyday expenses for Cypriot families. By removing the value-added tax on these items, the government aims to reduce the cost of living and ensure that basic necessities remain affordable. This measure is particularly important in the current economic climate, where inflationary pressures are affecting consumer prices across the board.

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In addition to the VAT relief, the government is also considering extending subsidies on energy costs. High energy prices have been a significant contributor to overall inflation, impacting both households and businesses. The proposed extension of these subsidies is designed to provide continued support to those struggling with high utility bills, thereby easing the financial strain and promoting economic stability.

These measures come at a time when Cyprus is experiencing a complex economic landscape, characterised by rising inflation and the need for strategic fiscal management. The government’s proactive stance in extending these relief measures reflects a commitment to supporting the economic well-being of its citizens. By addressing the immediate financial challenges faced by households and businesses, the government aims to foster a more resilient and sustainable economic environment.

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Strained Household Finances: Eurostat Data Reveals Persistent Payment Delays Across Europe and in Cyprus

by THEFUTURE.TEAM

November 22, 2025

Improved Financial Resilience Amid Ongoing Strains

Over the past decade, Cypriot households have significantly increased their ability to manage debts—not only bank loans but also rent and utility bills. However, recent Eurostat data indicates that Cyprus continues to lag behind the European average when it comes to covering financial obligations on time.

Household Coping Strategies and the Limits of Payment Flexibility

While many families are managing their fixed expenses with relative ease, one in three Cypriots struggles to cover unexpected costs. This delicate balancing act highlights how routine payments such as mortgage installments, rent, and utility bills are met, but precariously so, with little room for unplanned financial shocks.

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Breaking Down Payment Delays Across the European Union

Eurostat reports that nearly 9.2% of the EU population experienced delays with their housing loans, rent, utility bills, or installment payments in 2024. The situation is more acute among vulnerable groups: 17.2% of individuals in single-parent households with dependent children and 16.6% in households with two adults managing three or more dependents faced payment delays. In every EU nation, single-parent households exhibited higher delay rates compared to the overall population.

Cyprus in the Crosshairs: High Rates of Financial Delays

Although Cyprus recorded a notable 19.1 percentage point improvement from 2015 to 2024 in delays related to mortgages, rent, and utility bills, the island nation still ranks among the top five countries with the highest delay rates. As of 2024, 12.5% of the Cypriot population had outstanding housing loans or rent and overdue utility bills. In contrast, Greece tops the list with 42.8%, followed by Bulgaria (18.7%), Romania (15.3%), Spain (14.2%), and other EU members. Notably, 19 out of 27 EU countries reported delay rates below 10%, with Czech Republic (3.4%) and Netherlands (3.9%) leading the pack.

Selective Improvements and Emerging Concerns

Between 2015 and 2024, the overall EU population saw a 2.6 percentage point decline in payment delays. Despite this, certain countries experienced increases: Luxembourg (+3.3 percentage points), Spain (+2.5 percentage points), and Germany (+2.0 percentage points) saw a rise in payment delays, reflecting underlying economic pressures that continue to challenge financial stability.

Economic Insecurity and the Unprepared for Emergencies

Another critical indicator explored by Eurostat is the prevalence of economic insecurity—the proportion of the population unable to handle unexpected financial expenses. In 2024, 30% of the EU population reported being unable to cover unforeseen costs, a modest improvement of 1.2 percentage points from 2023 and a significant 7.4 percentage point drop compared to a decade ago. In Cyprus, while 34.8% still report difficulty handling emergencies, this marks a drastic improvement from 2015, when the figure stood at 60.5%.

A Broader EU Perspective

Importantly, no EU country in 2024 had more than half of its population facing economic insecurity—a notable improvement from 2015, when over 50% of the population in nine countries reported such challenges. These figures underscore both progress and persistent vulnerabilities within European households, urging policymakers to consider targeted measures for enhancing financial resilience.

For further insights and detailed analysis, refer to the original reports on Philenews and Housing Loans.

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