Cyprus

   

Social Policies

#30
Key Findings
With a number of gaps in its social systems, Cyprus scores relatively poorly in international comparison (rank 30) with respect to social policies. Its score in this area has improved by 0.1 point relative to 2014.

The country launched a new universal healthcare system in 2019. It performed well during the pandemic, with the population experiencing a comparatively low number of deaths. However, financial overruns in the system pose a risk to the public finances.

While education expenditures are high by EU standards, and attainment rates high, outcomes are comparatively poor. The rate of those at risk of poverty and exclusion has continued to decline even during the pandemic, but rates are far higher among non-Cypriots.

Underdeveloped family policies make it difficult for women to combine work with parenthood. Family networks help fill serious gaps in child care. Policies and practices have compounded xenophobic tendencies, and migrants experienced very poor conditions during the pandemic. While the country is generally safe, it is a trafficking destination for forced prostitution and labor.

Education

#22

To what extent does education policy deliver high-quality, equitable and efficient education and training?

10
 9

Education policy fully achieves the criteria.
 8
 7
 6


Education policy largely achieves the criteria.
 5
 4
 3


Education policy partially achieves the criteria.
 2
 1

Education policy does not achieve the criteria at all.
Education Policy
7
Primary education in Cyprus is almost exclusively public, as is 80% of secondary education. Public and private institutions offer tertiary education, while significant numbers of Cypriots study abroad. While literacy is near 100% for young persons, the rate of students leaving school early (11.5%) is higher than the EU average (9.9%). This is due to very high rates among non-Cypriots. Reforming education and solving chronic problems has been slow. This remains a challenge as it depends on the political and ideological antagonisms of successive governments, and the diverse interests of the stakeholders. The implementation of executive decisions or new laws is often problematic because of stakeholder reactions. Talks between teacher unions and the Ministry of Education have been in progress since 2018.

Schooling from the pre-primary level to the age of 15 is compulsory. The kindergarten enrollment rate is 90.1% (2020), with kindergarten places offered mainly by public and communal authorities, while nurseries are mostly private. Vocational schools, apprenticeship programs, and other education and professional training schemes are provided by public authorities and educational institutions, among other organizations. Attendance rates remain lower than the EU27 average. Depending on income criteria, tertiary-level students receive a modest allowance. While public education is free, parents pay various education-related expenses.

The pandemic has revealed weaknesses and deficiencies in organization, digital skills and infrastructure. Actions under the Recovery and Resilience Fund aim to address these and other significant challenges. They include responding to the needs of immigrant children and adults to facilitate social inclusion, reallocation of resources to increase participation in ICT and STEM subjects, new infrastructure and plans to improve vocational education and training (VET), and improving the skills match between education and the market.

The high expenditure on education (5.4% of GDP compared to an EU27 average of 4.7%) has to be justified against the achieving educational outcomes, which are still considered poor.

Citations:
1. European Commission, Education and Training Monitor 2021, Cyprus, December 2021, https://op.europa.eu/webpub/eac/education-and-training-monitor-2021/en/cyprus.html#B8

Social Inclusion

#23

To what extent does social policy prevent exclusion and decoupling from society?

10
 9

Policies very effectively enable societal inclusion and ensure equal opportunities.
 8
 7
 6


For the most part, policies enable societal inclusion effectively and ensure equal opportunities.
 5
 4
 3


For the most part, policies fail to prevent societal exclusion effectively and ensure equal opportunities.
 2
 1

Policies exacerbate unequal opportunities and exclusion from society.
Social Inclusion Policy
6
Both the AROPE (at risk of poverty or social exclusion) and the AROP (at risk of poverty) indicators declined from 23.9%/19.1% in 2018 to 21.3%/17.6% in 2020 (based on the revised AROPE definition, November 2021). The Gini coefficient was 29.3% compared to 29.1% in 2018. The pandemic prompted successive adjustments to the social support system in an effort to mitigate the impact of the lockdowns and compensate for the loss of income. Subsidies to businesses and assistance to people were provided on condition that they would prevent the dismissal of staff.

The new Deputy Ministry of Welfare was created in 2021, with the aim that the ministry will improve the work and quality of welfare services. Beyond the pandemic support schemes, existing policies continued, including a guaranteed minimum income, as well as targeted measures for vulnerable and disadvantage groups.

The AROPE indicator for non-Cypriots remained unchanged, 33.3% against 33.6% in 2018, which is almost double the rate for Cypriots (17.8%). It improved to 27.8% from 29.7% in 2018 for other-EU nationals, but not for non-EU citizens (36.1% against 36% in 2018). Persons over 65 years old were in a worse position in 2020 (AROPE 24% against 23.5%) with men affected more than women, though women face a higher risk of poverty or social exclusion (25.2%).

The IMF stresses the need for policies to achieve universal recovery. It is evident that the high NEET indicator and the uneven impact of the pandemic as shown by the AROPE figures above are issues of concern. Although inclusion is promoted in special education programs, the condition of non-Cypriots, who comprise a core component of the labor force, calls for more action from the authorities.

Citations:
1. At-risk-of-poverty indicators 2008-2020, Cyprus Statistics Service, 2021, https://library.cystat.gov.cy/NEW/EUSILC-POVERTY-A2008_2020-EN-300821.xls
2. At-risk-of-poverty indicators 2015-2020 (revised), Cyprus Statistics Service, 2021, https://library.cystat.gov.cy/NEW/EUSILC-POVERTY_NewDefinition-A2015_2020-EN-021121.xls

Health

#26

To what extent do health care policies provide high-quality, inclusive and cost-efficient health care?

10
 9

Health care policy achieves the criteria fully.
 8
 7
 6


Health care policy achieves the criteria largely.
 5
 4
 3


Health care policy achieves the criteria partly.
 2
 1

Health care policy does not achieve the criteria at all.
Health Policy
6
The General Health System (GESY) started operation in June 2019 and, from June 2020, has gradually offered an increasingly full array of services. Healthcare entered a new era with services provided to all residents. This replaced the previous unregulated system, which suffered from the highest rates of out-of-the-pocket spending in Europe, long waiting times, and inequalities in access and inefficiency.

The system responded well to the challenges posed by the pandemic, with limited impact on health in general and a low number of deaths. Despite constraints and deficiencies affecting the quality of healthcare, the state of health in Cyprus is better than on average in the EU27. In 2019, the infant mortality rate was 2.6 per 1,000 live births, and life expectancy at birth was 80.1 years for men and 84.2 for women.

The major challenges facing the system include proving the system’s resilience in the face of the pandemic, securing adequate and sustainable funding, and becoming fully autonomous and self-sufficient within five years (i.e., by mid-2024). However, some critics have pointed to cases of abuses of the system, which increases spending beyond the amount budgeted. Both the IMF and the European Commission have expressed concerns and warn that increased spending presents, among other things, a risk to public finances.

Citations:
1. European Commission, Cyprus – Country Health Profile 2021, https://eurohealthobservatory.who.int/docs/librariesprovider3/country-health-profiles/chp2021pdf/cyprus-countryhealthprofile2021.pdf
2. European Commission, Post_programme Surveillance Report, Cyprus, Autumn 2021, https://ec.europa.eu/info/sites/default/files/economy-finance/ip163_en.pdf
3. Audit accuses HIO of violating law and philosophy of Gesy, Cyprus Mail, 9 December 2021, https://cyprus-mail.com/2021/12/09/audit-accuses-hio-of-violating-law-and-philosophy-of-gesy/

Families

#36

To what extent do family support policies enable women to combine parenting with participation in the labor market?

10
 9

Family support policies effectively enable women to combine parenting with employment.
 8
 7
 6


Family support policies provide some support for women who want to combine parenting and employment.
 5
 4
 3


Family support policies provide only few opportunities for women who want to combine parenting and employment.
 2
 1

Family support policies force most women to opt for either parenting or employment.
Family Policy
4
Family support services are limited, despite recent improvements. It’s difficult for women to combine motherhood and employment, which makes increasing the birth rate difficult (1.33 in 2019 compared to 1.37 in 2016). Nevertheless, 77.8% of women aged 25 to 54 were employed in Q3 2021 (75% in 2018). Under the Recovery and Resilience Plan, free pre-primary education will start earlier, with public kindergartens. However, childcare for younger children is offered primarily by the private sector and in community centers supervised by the Ministry of Labor.

Family members, mainly grandparents, offer childcare, contributing to a lower AROPE rate among children (23% in 2019). Eurochild says the Recovery and Resilience Plans for Cyprus and most other EU member states ignore children’s well-being. Children suffered from the COVID-19-related lockdown, although support measures provided children with some assistance.

The operation of kindergartens in most communities, and full-day preschool and primary school care in many communities, which had clearly benefited families, was disrupted by the COVID-19 lockdown. Resumption and expansion of operations would further improve the overall situation.

Multi-member families receive special allowances and the guaranteed minimum income has alleviated financial difficulties. In addition to a 2017 law granting paternity leave, a new law extended maternity leave and employment protections.

Furthermore, what is needed is comprehensive policies for women, families and children’s well-being.

Citations:
1. Cyprus – Country Profile on the European Semester and COVID-19 crisis, 2020, https://eurochild.org/uploads/2021/02/CY-ECH-S20-profile.pdf

Pensions

#20

To what extent does pension policy realize goals of poverty prevention, intergenerational equity and fiscal sustainability?

10
 9

Pension policy achieves the objectives fully.
 8
 7
 6


Pension policy achieves the objectives largely.
 5
 4
 3


Pension policy achieves the objectives partly.
 2
 1

Pension policy does not achieve the objectives at all.
Pension Policy
5
Improvements achieved by policies that benefited elderly people in recent years were disrupted by the COVID-19 crisis. AROPE rates show that the impact of the pandemic was high on persons over 65, who have always faced a higher risk of poverty and social exclusion. The gradual reversal of cuts to pensions has continued in 2022, which will further improve the expenditure-to-GDP ratio.

With a focus on providing support and assistance to face the COVID-19 crisis, no pension developments occurred in 2020 and 2021. Public service employees remain in a better position than private sector workers. Retirement ages vary according to employment sector. Public employees receive state and social insurance pensions, and a retirement bonus. However, the government and trade unions agreed on the creation of a new social insurance scheme and fund for those employed after 2011. Private sector employees have access to social insurance benefits and some have access to provident fund schemes.

A new policy framework was adopted in 2019, which is expected to improve the currently inadequate system. The new framework should strengthen the currently weak supervision of the insurance and pension schemes. However, this has not been translated into law, yet.

Reforms introduced in 2010 have, among other things, benefited pensioners. Despite improvements to their financial situation, pensioners and especially women remain vulnerable, with a high AROPE rate.

The European Commission noted in 2017 that the gender gap in pensions is the highest in the European Union.

Citations:
1. Our View: Public sector pensions need overhaul without delay, Cyprus Mail, 13 October 2021, https://cyprus-mail.com/2021/10/13/our-view-public-sector-pensions-need-overhaul-without-delay/
2. At-risk-of-poverty indicators 2008-2020, Cyprus Statistics Service, 2021, https://library.cystat.gov.cy/NEW/EUSILC-POVERTY-A2008_2020-EN-300821.xls

Integration

#21

How effectively do policies support the integration of migrants into society?

10
 9

Cultural, education and social policies effectively support the integration of migrants into society.
 8
 7
 6


Cultural, education and social policies seek to integrate migrants into society, but have failed to do so effectively.
 5
 4
 3


Cultural, education and social policies do not focus on integrating migrants into society.
 2
 1

Cultural, education and social policies segregate migrant communities from the majority society.
Integration Policy
4
Foreign labor increased from 20.6% in 2019 to 21.9% of the employed workforce in 2021 (with 11.2% other-EU workers and 10.7% non-EU workers). The composition of labor started to change in 1989 with an initial flow of workers from southeast Asia, then from Central-East Europe, and from other-EU member states after 2004. The need to manage the increase in undocumented migrants became urgent in 2020 and 2021. Policies largely focused on stopping the flow rather than managing integration.

Despite pressure, particularly from the Council of Europe and NGOs, to respect migrants’ rights, official policies, practices and rhetoric have been blatantly racist and, compounded by mainstream media reports, have exacerbated the already high rates of xenophobia. Official statements targeting migrant children prompted an immediate reaction from the child protection commissioner. COVID-19 measures very negatively affected migrants’ rights, and the situation in reception and detention centers, which was already critically poor.

In a long letter to the interior minister, in March 2021, the Council of Europe’s commissioner for human rights asked for reports about the pushback, ill-treatment and collective expulsion of migrants, as well as poor conditions at reception centers and the deprivation of migrants’ rights to be investigated.

Poor performance on most relevant indicators persists, including access to the labor market, culture and education, and on reuniting families and ensuring civil rights. A positive response to recommendations by the ECRI (2016) was expected to include a comprehensive policy framework. However, rhetoric and actions have moved in the opposite direction, with the situation worsening.

What has dominated the public sphere has neutralized positive actions. In the framework of EU programs, local authorities and others are involved in integration projects. Education is provided to all children and special programs to facilitate inclusion are run in schools, albeit in a climate of negative official discourse and society reactions. The labor market has somewhat opened to migrants, but securing formal employment or obtaining long-term residence status remain extremely difficult. Given the impact of the COVID-19 crisis, migrants’ AROPE rate has remained very high, twice that of Cypriots.

The above points to inconsistencies, contradictions, and an official stance that lacks genuine concern for human rights and dignity.

Citations:
1. Commissioner of Human Rights, CoE, Letter to Cyprus Interior Minister, 21 March 21, https://rm.coe.int/letter-to-mr-nicos-nouris-minister-of-interior-of-cyprus-by-ms-dunja-m/1680a1c09b
2. Government under fire for migrant scaremongering, Financial Mirror, 12 November 2021, https://www.financialmirror.com/2021/11/12/government-under-fire-for-migrant-scaremongering/
3. MPs shocked at state of Pournara refugee centre, Cyprus Mail, 13 December 2021, https://cyprus-mail.com/2021/12/13/mps-shocked-at-state-of-pournara-refugee-centre/

Safe Living

#28

How effectively does internal security policy protect citizens against security risks?

10
 9

Internal security policy protects citizens against security risks very effectively.
 8
 7
 6


Internal security policy protects citizens against security risks more or less effectively.
 5
 4
 3


Internal security policy does not effectively protect citizens against security risks.
 2
 1

Internal security policy exacerbates the security risks.
Internal Security Policy
7
Generally considered a safe environment, Cyprus ranks as the fifth safest country worldwide, according to a survey by French insurer Insurly. Its relatively vulnerable points are the zone dividing the government-controlled areas and Turkish-occupied north, as well as sections of one of the UK military bases in the north.

The country is a trafficking destination for forced prostitution and labor. It is not part of the Schengen area.

Incidents of serious crime are rare. Burglaries and robberies are by far the most common crimes, while digital crimes have gradually increased. Law enforcement is largely deficient in cases of minor wrongdoings. However, violations of the driving code (a large-scale offense) often lead to deaths. Illegal drug activity is comparatively low overall, but a sustained increase in illegal drugs confiscated at entry points has been noted.

The COVID-19 crisis led police to assume many more responsibilities related to enforcing compliance with restrictions.

Citations:
1. Holidays: Safest country in world for 2020 revealed – is it where you’re going on holiday? Express, 14 February 2020, https://www.express.co.uk/travel/articles/1245837/holidays-2020-safest-country-in-the-world-switzerland-safe-travel-news-latest

Global Inequalities

#41

To what extent does the government demonstrate an active and coherent commitment to promoting equal socioeconomic opportunities in low- and middle-income countries?

10
 9

The government actively and coherently engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. It frequently demonstrates initiative and responsibility, and acts as an agenda-setter.
 8
 7
 6


The government actively engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. However, some of its measures or policies lack coherence.
 5
 4
 3


The government shows limited engagement in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. Many of its measures or policies lack coherence.
 2
 1

The government does not contribute (and often undermines) efforts to promote equal socioeconomic opportunities in low- and middle-income countries.
Global Social Policy
3
There has been a lack of information on the issue for many years.

Cyprus’s participation in and contribution to development-cooperation programs has been very limited and mainly within the context of its membership in major international organizations. Its policies were tied to that of the European Union, and materialized in the context of international cooperation and bilateral agreements. A contributor to Unitaid, Cyprus participated in financing mechanisms for climate change. It has also provided assistance for infrastructure development, social services, including healthcare and human development, and environmental protection.

However, no data has been made available on the CyprusAid website since 2013.

Beyond the country’s continued contribution to Unitaid, no other actions and policies appear to form part of a specific national strategy.

Citations:
1. Data on ODA, Cyprus, http://www.cyprusaid.gov.cy/planning/cyprusaid.nsf/page11_en/page11_en
Back to Top