Cyprus pension reform called inadequate, unfair and unsustainable

The social security reform proposed by the Christodoulides government is inadequate, unfair and unsustainable, according to the criticism set out in the source. Cyprus government expenditure on pensions amounted to 7.6 per cent of GDP in 2023, compared with 12.3 per cent for the EU and 14.0 per cent for Greece, while a caption puts the figure at 6.0 per cent of GDP in 2023 against 9.9 per cent in the EU. The average monthly increase in pensions will be no more than €34. The scope for lifting vulnerable people out of the risk of poverty is constrained by the strict fiscal limits set by Finance Minister Makis Keravnos and by objections from the Chamber of Commerce (Keve) and the Employers and Industrialists Federation (OEV) to increases in contribution rates to the social insurance fund and to raising the retirement age.