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Mousiouttas Chairs EU Discussions On Skills And Labour Market Policies

Cyprus Sets Ambitious Youth Employment Agenda

Labour Minister Marinos Mousiouttas announced new initiatives aimed at strengthening employment opportunities for young people. The measures form part of a labour market strategy for 2026-2028.

Policy Frameworks And Targeted Initiatives

Responding to a question from MP Charalambos Theopemptou of the Green Party, Mousiouttas said the initiatives build on existing policies under the National Strategy for Active Employment Measures for 2023-2025 and a draft strategy submitted to the European Commission in December 2025. Planned actions include personalised counselling, individual action plans and subsidised employment programmes designed to support young job seekers entering the labour market.

Eurostat data show that youth unemployment in Cyprus stood at 15% in December 2025, close to the EU average. Data from the Cyprus Statistical Service (Cystat) indicate that unemployment among people aged 15-24 reached 14.7% in the fourth quarter of 2025, compared with 9.6% in the same period a year earlier.

Structural Reforms And Long-Term Vision

Mousiouttas also referred to measures introduced in recent years to support young people who are not in employment, education or training (NEETs). An early identification system allows individuals registering with public employment services to be referred to employment counsellors.

An outreach programme operating between January 2024 and August 2025 used mobile units to provide employment support in both urban and rural areas. According to the ministry, the programme engaged 542 young people classified as NEETs, providing information and guidance on available employment services. Efforts to strengthen technical and vocational education are also underway. The education ministry has allocated €30 million to support related programmes.

At the same time, a project aimed at modernising the public employment service is running until 2027 with a budget of €17.8 million. Authorities have also established the National Lifelong Guidance Agency to provide career guidance and support services.

EU Engagement And Strategic Dialogue

Mousiouttas is currently in Brussels participating in meetings of the EU Employment, Social Policy, Health and Consumer Affairs Council (EPSCO). Agenda items include discussions on the 2026 European Semester, labour market policies linked to skills shortages and the impact of artificial intelligence on employment. The council is also expected to discuss a new EU recommendation on human capital aimed at improving coordination between education, training and labour market policies across the bloc. Participants in the discussions include EU commissioners and economists such as Christopher Pissarides.

Lithuania And Cyprus Forge Enhanced Partnership In Tourism And Defence

Expanding Cooperation Beyond The Surface

Kristupas Vaitiekūnas highlighted opportunities for closer cooperation between Lithuania and Cyprus during his visit to Nicosia for the informal ECOFIN meeting. Speaking to the Cyprus News Agency, the Lithuanian finance minister said both countries share common challenges and could expand collaboration in areas including tourism, defence and financial services.

Addressing Shared Challenges

Finance Minister Kristupas Vaitiekūnas said Lithuania and Cyprus face similar security and economic pressures despite their geographic differences. Particular attention was given to emerging security threats, including drone-related risks, alongside the importance of maintaining resilient financial sectors. According to Vaitiekūnas, stronger coordination in those areas could deliver long-term economic and strategic benefits for both countries.

Focus On Fiscal Stability And Energy Security

Discussions at the ECOFIN meeting are expected to focus on Europe’s economic outlook, energy market volatility and fiscal stability. Kristupas Vaitiekūnas warned that instability in the Middle East could continue affecting oil markets and broader economic performance across Europe. Housing affordability was also identified as a growing challenge, with rising property prices in cities such as Vilnius reflecting broader pressures seen across European markets.

Coordinated Energy Strategy And Future Investments

The Lithuanian finance minister also called for a more coordinated European approach to energy and economic resilience. Vaitiekūnas suggested that targeted and temporary policy measures could prove more effective than large-scale structural reforms in addressing short-term pressures. Lithuania continues to increase investment in renewable energy generation and storage infrastructure as part of efforts to strengthen energy independence and begin producing surplus electricity by 2028.

Support For Ukraine And Enhancing Defence Funding

Finance Minister Kristupas Vaitiekūnas reaffirmed Lithuania’s support for Ukraine, describing the war as a broader struggle tied to European security and democratic values. He also backed accelerating Ukraine’s accession process to the European Union, arguing that deeper integration would strengthen regional stability and economic prosperity. Vaitiekūnas welcomed the EU’s SAFE programme, which is expected to support Lithuania’s defence capabilities while contributing additional assistance to Ukraine.

Looking Ahead To A More Unified Europe

Addressing the European Union’s future budget framework, Kristupas Vaitiekūnas said increased funding for security and defence represented a positive development. At the same time, he warned that reductions in cohesion funding and agricultural support could negatively affect purchasing power and long-term European unity. Lithuania is expected to place continued emphasis on Ukraine and regional security ahead of its upcoming EU Council Presidency in early 2027.

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