Nicosia is preparing for a major protest this Saturday, March 29, organised by Akel’s Social Alliance movement and supported by the Green party, the protest will begin at 11am in Eleftheria Square before marching towards the finance ministry.

The rising cost of living, a pressing issue for many Cypriots, is at the heart of the protest.

A key point of contention is the introduction of the “green taxation” set for May. The organisers of the protest argue that this tax will exacerbate the financial difficulties faced by citizens who are already struggling with low wages, a housing crisis, and the relentless rise in the prices of everyday essentials. Akel leader Stefanos Stefanou described the situation as one where “nightmare proportions” have become a reality for many families.

“This protest isn’t just about green taxes,” Stefanou said, “it’s about the unbearable pressures facing our citizens. The government’s approach is out of touch with the reality faced by everyday people.”

Both Akel and the Greens are united in their opposition to the green tax, which they argue will disproportionately affect retirees, low-wage workers, and small businesses. The parties are also calling for immediate economic relief for those struggling the most.

Akel MP Charis Polykarpou explained that the protest’s agenda goes beyond just the green tax.

“We have five main demands,” he said.

“The first is the non-imposition of taxes that negatively affect workers, particularly those in uninsured groups.”

Polykarpou highlighted how increasing university fees have added to the financial strain on many families, while the government’s push for green taxation has been met with concern due to the lack of supporting infrastructure.

“The insistence on the green tax is only going to make things worse. Without affordable energy solutions like LPG and lower electricity prices, these taxes will burden those who can least afford it,” Polykarpou warned.

Greens MP Stavros Papadouris echoed these concerns, urging for the green tax to be postponed.

“The green tax should be introduced only after we are ready,” he said.

“If we haven’t met the targets for green energy, we cannot impose further taxes on struggling consumers.”

Papadouris also raised concerns about the rising energy costs, which have hit low-income households the hardest.

“This protest is not just about green taxation, it’s about a wider economic crisis,” he added.

The proposed green tax would increase fuel costs by 6 cents per litre starting in May, with the rate set to rise to 8 cents in 2026 and possibly up to 30 cents by 2033. Akel’s Stefanou sharply criticised the former Anastasiades administration for pushing forward with the green tax, despite disagreements within the European Union.

“Even the EU has struggled to come to an agreement on this issue,” Stefanou pointed out, citing Belgium’s failure to secure consensus during its presidency.

“This shows how divisive and damaging this policy could be.”

Akel has called for the removal of the green tax and a reduction in fuel and electricity taxes. Stefanou suggested that such changes could free up between €50-60 million, which could then be used to tax the super-profits of renewable energy companies.

The party also advocates for the permanent removal of consumer taxes on fuels, in line with EU recommendations for VAT exemptions on basic goods and for small businesses.

The cost-of-living crisis in Cyprus has intensified in recent years, with 130,000 Cypriots now living at or below the poverty line. In addition, 250,000 people earn less than €1,175 a month, making it increasingly difficult to make ends meet.

Rising rents have exacerbated the problem, with many struggling to afford homes. As homeownership slips out of reach for many, the fear of eviction is growing.

One tragic incident in Limassol underlined the severity of the housing and energy crisis. A fire caused by substandard heating claimed the lives of nine people, including three children.

“One in six Cypriots cannot afford proper heating,” the Social Alliance, which is supporting the protest, noted.

The organisers are calling for several immediate changes, including rent subsidies, reinstatement of student aid, state support for low-interest housing loans, and an extension of the cost-of-living allowance (CoLA) to the private sector.

While the protest is focused on the struggles of ordinary Cypriots, the International Monetary Fund (IMF) has painted a more optimistic picture of the country’s economy. In its latest statement, released on March 28, the IMF noted that Cyprus’ economy grew by 3.4 per cent in 2024, driven by foreign investment, a thriving ICT sector, and strong tourism.

However, the IMF also cautioned about rising inflation, which remains above 2 per cent. The IMF attributed this largely to increased service prices and wage pressures. The organisation warned that Cyprus must take care to avoid risks related to trade conflicts, regional tensions, and overheating caused by loose fiscal policies.

While the IMF points to strong economic growth, Akel and the Green party argue that this growth has not translated into tangible benefits for the majority.