The government’s main interest is to selfishly reward itself and its cronies

The Cyprus government is generating large surpluses and accumulating deposits at banks reaching €6.8 billion at the end of September 2025.

And Cyprus banks held cash and cash balances totaling €19.6 billion or nearly 30 per cent of their total assets at the end of June with most of these being liquid assets deposited at the ECB.

Thus, there is the issue of whether the government and banks are wasting and irresponsibly using financial resources with their conduct of financial policies and self-centered behaviour.

Moreover, could the government and banks use their resources more productively and responsibly in order to raise the rate of economic growth and improve the well-being and social conditions of its citizens?

Financial policies

Governments have the responsibility of using their financial resources, mostly derived from taxpayers’ money, to serve their citizens. However, the Cyprus government by generating a string of large surpluses (€1.2 billion surplus or 3.2 per cent of GDP in the first nine months of 2025) is not only taking money out of the economy reducing the purchasing power of households and private businesses, but is failing to use its resources to support essential development and social needs.

On the contrary, the government’s main interest is to selfishly reward itself, by compensating its leaders,