MVP

Tag: economic impact

  • Paphos banana — Paphos Banana Farmers Call for Protection Amid EU-Mercosur Trade Deal

    Paphos banana — Paphos Banana Farmers Call for Protection Amid EU-Mercosur Trade Deal

    Banana farmers in the Paphos district are urging for their protection as the EU-Mercosur trade deal takes shape. Nikolas Theodosiou, the deputy mayor of Kissonerga, emphasised the need for safeguards for local producers when the agreement becomes effective. He raised concerns that local farmers could be adversely affected by cheaper imports from Latin America.

    • As the signing date approaches, the concerns of Paphos banana farmers remain front and centre, highlighting the delicate balance between free trade agreements and local agricultural sustainability.

    Theodosiou articulated the challenges faced by local banana producers, stating, “The products coming in are often much cheaper than what local producers can afford to produce.” He warned that without adequate protection measures, these farmers could find themselves in a precarious position.

    The trade agreement, expected to be signed by European Commission President Ursula von der Leyen in Paraguay this Saturday, will establish the world’s largest free trade area, impacting over 700 million people. The deal aims to gradually eliminate tariffs on more than 90 per cent of bilateral trade between the EU and Mercosur, offering opportunities for various industries within Europe.

    However, the agricultural sector in Europe, particularly in regions like Cyprus, has raised alarms about potential negative impacts. Countries such as Argentina and Brazil are significant players in global agriculture, raising fears among EU farmers of being undercut by cheaper products. Some European farmers have expressed their concerns vocally; on Tuesday, over 350 tractors protested in Paris, with demonstrations also occurring in Ireland, where local media reported around 20,000 people took to the streets in opposition.

    Despite the backlash, the European Council approved the deal last Friday, albeit with dissent from Austria, France, Hungary, Ireland, Poland, and an abstention from Belgium. Italy, which had previously opposed the agreement, surprisingly voted in favour.

    President Nikos Christodoulides hailed the approval as a “historic milestone,” asserting that it reflects a commitment to a robust and open trade policy. Trade Minister Michael Damianos echoed this sentiment, stressing the importance of strengthening political cooperation and economic ties amid global uncertainties.

    Although the deal can be provisionally implemented without a vote in the European Parliament, the bloc’s director-general for trade, Sabine Weyland, has indicated that MEPs will have an opportunity to weigh in during a vote likely scheduled for February or March. This has left many in the Cypriot agricultural sector feeling uneasy, with Akel MP Yiannakis Gavriel warning that the deal could be devastating for Europe, particularly for smaller nations like Cyprus.

    As the signing date approaches, the concerns of Paphos banana farmers remain front and centre, highlighting the delicate balance between free trade agreements and local agricultural sustainability.

  • Minimum wage — Minimum Wage Increase in Cyprus Faces Criticism from Employers and Unions

    Minimum wage — Minimum Wage Increase in Cyprus Faces Criticism from Employers and Unions

    The recent minimum wage increase in Cyprus has sparked significant criticism from both employers and trade unions. Labour Minister Marinos Mousiouttas emphasised the government’s aim to protect the purchasing power of workers while maintaining business viability. Speaking during an interview on RIK television, Mousiouttas noted that the Ministry’s role is to mediate, ensuring industrial peace and improving earnings without jeopardising the economy’s ability to absorb these changes.

    Employers Raise Concerns Over Economic Impact

    The Cyprus Federation of Employers and Industrialists (OEB) has voiced strong opposition to the minimum wage hike, which they believe exceeds the real economy’s capacity. The OEB estimates an approximately 8.8% increase, arguing that this rise is not justified by productivity levels. They warn that the total cost to employers could surpass €1,250 per employee, placing additional pressure on businesses, particularly those that are only marginally viable.

    OEB representatives have also expressed fears that passing these increased costs onto consumers could fuel inflationary pressures. The Federation’s concerns reflect a broader apprehension within the business community regarding the sustainability of such wage increases in the face of potential economic downturns.

    Trade Unions Demand More for Workers

    Conversely, trade unions argue that the minimum wage increase is still inadequate. The Cyprus Workers’ Confederation (SEK) has stated that the new minimum wage fails to meet basic subsistence needs, particularly for workers in sectors such as retail, cleaning, supermarkets, and security. Despite recorded economic growth, SEK highlights that wages in Cyprus remain disproportionately low compared to the GDP and productivity.

    Andreas Matsas, the General Secretary of SEK, has called for a review of the minimum wage decision before it is finalised. He pointed out that workers earning the minimum wage are largely unaffected by recent tax reforms, suggesting that the government should have taken more sensitive measures to support these individuals.

    A New Minimum Wage Structure

    The new minimum wage will come into effect on 1 January 2026, with a scheduled review in 2028. According to the decision made by the Council of Ministers, the minimum wage will be set at €979 for newly hired employees and will increase to €1,088 after six months of employment. This structure aims to provide a gradual increase for workers while allowing businesses time to adjust.

    Ongoing Dialogue and Negotiations Ahead

    The discussion surrounding the minimum wage is expected to continue beyond the festive period, with both employers and unions likely to engage in further dialogue. The government’s mediatory role will be crucial in balancing the needs of workers with the economic realities facing businesses. As the implementation date approaches, stakeholders will be keenly observing the impact of this increase on both the labour market and the economy at large.

    As tensions rise and differing opinions emerge regarding the minimum wage, it is clear that this issue will remain a focal point in Cyprus. The government’s commitment to safeguarding workers’ purchasing power, while also considering the viability of businesses, reflects a complex challenge that requires careful navigation.

  • Cloud Seeding Considered as Cyprus Faces Water Crisis

    Cloud Seeding Considered as Cyprus Faces Water Crisis

    Cloud seeding is being examined as a potential solution to alleviate water scarcity in Cyprus, which is bracing for a fourth consecutive winter of drought. The agriculture ministry has acknowledged the dire situation, with the island’s dams currently holding only 11 per cent of their capacity, raising urgent concerns about the future of water supply.

    Photo: cyprus-mail.com

    Urgent Call for Action

    Kleanthis Nicolaides, the former head of the meteorology department, has been vocal in advocating for cloud seeding as an alternative to manage the escalating water crisis. He has highlighted the alarming lack of rainfall this October, which has left the dams critically low and prompted discussions about the potential of weather modification technologies.

    Photo: cyprus-mail.com

    Assessing the Current Drought Situation

    The gravity of the drought was underscored by Nicolaides, who suggested that official figures may misrepresent the true condition of the reservoirs, stating that sediment accumulation in the dams is likely leading to inaccurate capacity measurements. “The situation is worse than what the official data shows,” he remarked, reinforcing the need for immediate action.

    Exploring Cloud Seeding

    Cloud seeding involves dispersing substances into the atmosphere that can act as cloud condensation or ice nuclei. Common agents include silver iodide and potassium iodide, with hygroscopic materials like table salt gaining attention for their moisture-attracting properties. While the technology has shown promise, its effectiveness remains a topic of debate.

    Nicolaides acknowledged that while cloud seeding is not a silver bullet, it warrants exploration given the severe circumstances. “In these desperate times, the government should explore the option,” he stated. He also described the operational aspects of cloud seeding, which may require aircraft equipped with specialized equipment to disperse the substances effectively.

    Potential Costs and Agricultural Impact

    The agricultural sector is already feeling the pressure, with the Water Development Department advising farmers to refrain from planting seasonal crops. This has resulted in reduced availability of staple items like lettuce and potatoes, leading to anticipated price increases. “Lack of water means agricultural products will go up in price,” Nicolaides warned, highlighting the broader economic implications of water scarcity.

    Historical Context of Cloud Seeding in Cyprus

    Reflecting on past efforts, Nicolaides recalled that Cyprus had previously experimented with cloud seeding during a drought in the early 1970s. However, the results of those initiatives were never fully assessed due to the outbreak of war in 1974. “This was done over a period of a couple of years, but the results were never properly evaluated,” he noted.

    Government Considerations

    The government has been exploring the feasibility of cloud seeding, with the meteorology department confirming that it is closely monitoring international developments in weather modification technologies. Philippos Tymvios, the current director of the meteorology department, stated that proposals for cloud seeding have been submitted by at least two private companies. “All proposals are being reviewed carefully, with the guidance of independent scientific experts,” he added.

    While there is no operational cloud seeding programme currently in place, Tymvios indicated that the government is considering all scientifically credible options to address the long-term water scarcity affecting Cyprus. “Any future initiative would be based on robust scientific evidence and full alignment with public interest safeguards,” he assured.

    Challenges and Future Directions

    Despite the interest in cloud seeding, there are significant challenges to its implementation. A study by the United States National Academy of Sciences has cast doubt on the effectiveness of cloud seeding, failing to find statistically significant evidence to support its impact on precipitation. Similarly, a 2010 study from Tel Aviv University indicated that traditional cloud seeding materials may have little effect on rainfall amounts.

    As the debate continues, Nicolaides emphasised the need for a comprehensive cost-benefit analysis to evaluate potential methods for enhancing rainfall. He noted that with the dams nearly empty, Cyprus increasingly relies on desalination and boreholes for its water supply, which further complicates the issue. “Desalination is no fix-all,” he cautioned, underscoring the urgency of the situation.

    Looking Ahead

    With Cyprus facing a critical juncture in its water management strategy, the exploration of cloud seeding and other innovative solutions will be essential in tackling the ongoing drought. As the government weighs its options, the experiences of other countries that have successfully implemented weather modification technologies may provide valuable insights. The path forward will require careful consideration, transparency, and collaboration with scientific experts to ensure any initiatives align with the public’s best interests.