The Labour Minister has met EDEK to discuss pension reform, the state’s €12 billion debt to the Social Insurance Fund, and the government’s response to the tourism industry’s mounting pressures from the US-led war against Iran.
On tourism, Marinos Moushouttas said the Labour Ministry and the government are conducting studies so that, once the data is assessed, they will be ready to determine the appropriate response as quickly as possible.
Cancellations recorded for March and April are now being followed by some summer cancellations, while demand for new bookings remains weak. PASYXE president Thanos Michailides has said the biggest impact has been felt in Limassol and Paphos, where year-round hotels recorded immediate cancellations linked to flight disruptions.
Hotel operators have proposed extending the full suspension of work for employees by around two months, effectively until the end of April, until there is greater clarity over developments in the Middle East.
Pension reform
The 12% actuarial reduction applied to pensions for those who retire before the age of 65 was also discussed in the meeting. Moushouttas confirmed that the reform framework provides for a reduction of this percentage, subject to criteria still to be determined.
A key goal of the reform, he said, is to strengthen low pensions — which he described as unacceptably low. Consultation with social partners and the Labour Advisory Body is continuing with a view to completing and tabling the relevant bill in parliament.
Social insurance
On the €12 billion state debt to the Social Insurance Fund, Moushouttas said ways are being examined to return this amount gradually to the Fund as part of the broader reform.
Moushouttas described the meeting with EDEK president Nikos Anastasiou and a party delegation as friendly and constructive, noting that EDEK was the first party to request a meeting with him since he took up his ministerial duties.
Anastasiou said EDEK’s main priority was a substantial increase in pensions, arguing that pensioners’ purchasing power had been significantly weakened. He said the party found the Labour Ministry’s study to be moving in the right direction and was now awaiting the bill’s tabling in parliament for further discussion.
On the 12% reduction, Anastasiou noted that it affects a large number of citizens who retire at 63 and said the minister had indicated there was an effort under way to address the issue.
On the Fund debt, Anastasiou called for a formal roadmap for its gradual repayment, arguing this would increase the Fund’s capacity for investment and improve its returns.
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