The Green Party has raised concerns about the government’s decision to eliminate relief measures, such as electricity subsidies and reduced VAT on essential goods, starting in October, amidst high costs of living.

In a statement on Friday, the Greens argued that the timing of the decision is problematic, as many households are still grappling with significant financial pressures.

They also drew attention to the lack of any action taken by the state to rein in profiteering.

 “It is unthinkable, at a time when households are hard hit and financial pressure is intense, for the government to withdraw support measures without adequate consumer protection against profiteering. The reduction in inflation has not translated into a reduction in the prices of basic consumer goods, and [the public] continue to struggle with the high cost of living,” the statement said.

The dropping of the electricity subsidy is particularly unpalatable, the Greens said.

Instead of abolishing subsidies, the state must first strengthen market controls and ensure consumer protection from unfair practices. Energy poverty and insecurity make the cost of electricity unaffordable and removing subsidies will worsen the situation, it added.

 “It is worth remembering that Cypriot consumers pay more for electricity than most European consumers due to the indifference and inability of successive governments to follow our […] proposals for cleaner fuels and the development of renewable energy sources [RES],” the Greens said.

A similar stance was taken by Akel MP Giorgos Koukoumas, who criticised the government for being out of touch with the struggles of ordinary citizens.

Terminating the measures without having in place a consistent and far-reaching financial policy to ease the life of its citizens, confirms that the state is entirely out of touch with the fact that a large majority of the population is struggling to make ends meet, Koukoumas said.

“The cost of living is still high, despite the control of inflation,” Koukoumas said.

“According to the statistical service, a total of 250,000 people, 28 per cent of the population, is living on an income of €14,000 per year. The vast majority of the population depended on these measures, even for a small degree of relief,” he said.

The measures were the sole supporting mechanism for the public in the absence of any comprehensive state plan for dealing with the ongoing high cost of living, the MP said, adding that every trip to the grocery shop, as of October 1, will cost the average person about €10 more.

The state ought to tackle its minimum wage policy which it hasn’t been addressed in years, as well as update subsidies so they are pegged to the real cost of living, not stuck on 2014 levels, Koukoumas said. To-date this is only done for pensions, he added.

Additionally, the state ought to be tackling the massive profits made by the banking sector, he said.

“At a time when some people’s pockets are emptying, others’ are bulging,” he said.