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Labour Minister Pushes for Crackdown on Undeclared Work in Cyprus

The Labour Minister of Cyprus has announced a concerted effort to tackle the widespread issue of undeclared work, which has long been a challenge for the Cypriot economy. To formalise the labour market and safeguard workers’ rights, the Ministry is pushing forward new measures aimed at cracking down on employers who engage in illegal employment practices, including failure to declare workers, pay fair wages, or contribute to social security.

The campaign, which is part of a broader government initiative to enhance labour rights and ensure compliance with employment laws, seeks to address both the economic and social impact of undeclared work. With undeclared employment affecting a significant portion of the workforce, particularly in sectors such as construction, hospitality, and domestic services, the Labour Ministry has made it a top priority to enforce stricter regulations and penalties.

Undeclared Work: A Persistent Challenge

Undeclared work, often referred to as the “shadow economy,” is a global issue that has long plagued Cyprus. It encompasses a range of illegal employment practices, including the hiring of workers without contracts, underpayment of wages, and failure to contribute to social insurance schemes. For years, such practices have not only deprived workers of their legal rights and protections but also cost the government millions in unpaid taxes and social security contributions.

In Cyprus, the problem has been particularly pronounced in sectors that rely heavily on seasonal or informal labour. Construction, tourism, agriculture, and domestic services have been identified as industries where undeclared work is more common, with many workers vulnerable to exploitation due to lack of proper oversight or enforcement.

According to government estimates, undeclared work in Cyprus accounts for a considerable portion of the labour market. This not only weakens workers’ protection but also creates unfair competition between businesses that follow the rules and those that cut costs by circumventing legal employment obligations.

Stricter Enforcement and Penalties

To address these challenges, the Labour Ministry is introducing stricter enforcement mechanisms, including more frequent inspections of workplaces, harsher penalties for employers found violating the law, and enhanced cooperation between government agencies responsible for labour and tax compliance. Employers who are caught engaging in undeclared work may face heavy fines, legal action, and, in some cases, closure of their businesses.

The Ministry also aims to strengthen workers’ awareness of their rights through information campaigns. By educating workers about their entitlements, including the right to minimum wage, insurance, and other legal protections, the government hopes to reduce the number of people falling victim to exploitative practices.

Moreover, the use of digital tools to track employment data and improve transparency within the labour market is also part of the government’s long-term plan to combat undeclared work. These technological measures are expected to make it easier for authorities to detect and address violations more efficiently.

EU Farm Output Prices Decline For The First Time In Nine Months

EU Market Adjustments Signal New Price Trends

Agricultural output prices across the European Union declined in the fourth quarter of 2025, marking a shift after several quarters of increases. Data from Eurostat shows that farm gate prices fell by 1.9% compared with the same period in 2024.

Crisis of Declining Prices In Select Markets

Cyprus recorded one of the more notable decreases in agricultural input costs among EU member states, with prices falling by 2.6% compared with Q4 2024. The reduction eased cost pressures for the local agricultural sector following periods of higher prices earlier in 2025. Across the EU, prices for goods and services consumed in agriculture remained relatively stable. Non-investment inputs such as energy, fertilisers and feedingstuffs showed limited overall changes during the quarter.

Country-Specific Divergence In Price Movements

Eurostat data highlights considerable variation across member states. Fifteen EU countries recorded declines in agricultural output prices. Belgium registered the largest decrease at 12.9%, followed by Lithuania (8.2%) and Germany (6.0%). At the same time, twelve countries reported increases in output prices. Ireland recorded the strongest rise at 6.8%, followed by Slovenia (5.6%) and Malta (4.2%).

Stability In Agricultural Inputs Amid Commodity Shifts

Agricultural input prices also showed mixed developments. Eleven member states recorded declines, including Cyprus (2.6%), Belgium (2.1%) and Sweden (2.0%). Other countries experienced moderate increases, including Lithuania (4.2%), Ireland (3.3%) and Romania (2.5%). Among major agricultural commodities, milk prices declined by 4.1% while cereal prices fell by 8.9% across the EU. In contrast, fertilisers and soil improvers increased by 7.9%, reflecting continued volatility in input markets.

Outlook For EU Agriculture

The latest Eurostat data points to uneven price developments across the EU agricultural sector. While input prices remained broadly stable in many markets, movements in output prices varied significantly between member states. These trends highlight the need for farmers and policymakers to adapt to shifting commodity prices and changing cost structures across the European agricultural market.

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