Nicosia, Cyprus. Trade union Sek warned that policy failures and a lack of strategic planning continue to place a heavy burden on society, particularly as energy costs rise. The union said middle and low-income workers are most affected by increases in international energy prices.
Impact of energy price rises
Sek economic studies department officer George Pirishis said price increases in products and services driven by higher energy costs are not new. He cited the 2007 economic downturn, the 2020 to 2021 pandemic crisis, and the current conflict in the Middle East.
Pirishis said the conclusion is clear that in every rise in international energy prices, those who bear the greatest cost are workers in middle and low-income groups. He said this is a consistent finding supported by data from the Statistical Service of Cyprus and household budget surveys.
Concerns over policy protection
Pirishis raised concerns about how vulnerable workers are effectively protected under current policies. In remarks shared in the union’s publication, Sek said temporary measures such as VAT reductions and lower excise duties are welcome but insufficient.
“These measures are temporary solutions that do not resolve the problem,” Pirishis said. He added that structural changes are needed, as rising energy costs erode purchasing power and put downward pressure on wages.
How should workers in middle and low-income groups be protected from rising energy costs under current policies?
