Containing fuel prices rather than achieving major decreases is the government’s current policy, Finance Minister Makis Keravnos said on Tuesday.

Speaking to media on the sidelines of an event marking European Statistics Day, Keravnos commented on the latest relief package to tackle the rising cost of living and on whether the government plans additional measures.

He said authorities are monitoring the support measures announced, adding that a first assessment by the Consumer Protection Service shows a 5 per cent drop in the prices of some essential items.

But asked whether still climbing energy prices have already neutralised the effect of the relief measures, Keravnos said that under the circumstances one should not expect significant decreases.

He said Cyprus finds itself in the middle of four wars – he did not specify – which have created “a huge global energy crisis”.

The effort should be to “contain prices and not expect sharp reductions”, he added.

The government has already cut tax rates to the minimum allowed under EU rules, and has asked for an exception in order to be able to lower taxes further.

But securing such an exception is not an easy process, Keravnos said, alluding to recent discussions at a summit of EU leaders.

Cyprus to raise issue with EU finance minister

The minister said Cyprus would raise the issue again at the next meeting of EU finance ministers scheduled in about two weeks’ time.

“There needs to be a certain flexibility in implementing EU fiscal governance rules, because we cannot design a monolithic policy that doesn’t factor in current circumstances, especially those we are experiencing today.”

Turning back to the latest relief package in Cyprus, Keravnos said some of the measures are already being implemented, while others still require the nod from parliament.

The reduced excise duty on heating oil is one such measure requiring a vote in the House plenary.

Once all the measures kick in, the government would do a follow-up assessment of their impact.

“I think we’re on the right track, in terms of what we are able to do and within the context of EU fiscal governance rules.”

The European Commission has rejected calls from member states like Italy and Greece to loosen the EU’s fiscal rules further to cushion the energy price crisis.

High prices lead to tax collection boost

Italian prime minister Giorgia Meloni argues that governments are collecting more tax revenue because prices are higher, but EU fiscal rules make it difficult to recycle that windfall into temporary energy support.

Higher inflation automatically increases indirect tax receipts such as VAT, but using that additional revenue to finance measures that reduce energy costs can count as discretionary fiscal action and run into limits imposed by agreed national spending paths, Meloni noted.

The EU’s reformed economic and fiscal governance framework entered into force in April 2024, overhauling the Stability and Growth Pact to balance debt sustainability with public investment.

One of its key constraints relates to keeping a government deficit limit under 3 per cent of GDP and public debt under 60 per cent of GDP.

Earlier this month, the Cyprus Consumers Association estimated that fuel price increases cost households and businesses an additional €23 million between March and August.

The tractors rolling into the town of Gela on the southern tip of Europe are flying the Sicilian flag, emblazoned with Medusa, three bent legs and ears of wheat, a reminder of the island’s role as a breadbasket since Roman times.

But the farmers are not bringing in a harvest. They are protesting.

As soaring fuel prices squeeze household budgets and businesses across Europe, cost-of-living pressures are driving unrest and giving fresh momentum to far-right parties ahead of elections next year in countries including France, Italy and Poland.

Parties once considered fringe had already been gaining ground, with voters from motorists in rural France to young men in Germany’s former Communist east looking for alternatives.

The US-Iran war, which erupted in February and sent energy prices sharply higher, has compounded the challenge for governments already struggling to contain inflation, support growth and rein in spending.

The discontent has spilled onto the streets.

In France, demonstrations that began over deteriorating school facilities in Paris’ northern suburbs have morphed into some of the country’s worst unrest in decades, with shops looted, buildings torched and a 19th-century town hall in Limoges set on fire.

“Why am I here? Well, quite simply, I find the current cost of living truly terrifying,” said Quentin Leviloux, a 21-year-old protester in Nantes.

“Just think of people who earn barely the minimum wage, when you look at the cost of food, fuel, and everything else. It’s terrifying how incredibly expensive things have become.”

The European Commission estimates the Iran conflict has cost Europe roughly €100 billion ($112 billion) through disrupted trade and energy markets. Gas prices have jumped about 140% and diesel prices have doubled.

In a weekend address, French President Emmanuel Macron acknowledged the “legitimate demands” of protesters angered by rising living and fuel costs, while condemning those responsible for violence and looting. “We must never confuse them with those who destroyed, vandalised and looted,” he said.

Cost-of-living protests spread across Europe

Violence has also erupted elsewhere. In the wealthy northern Italian city of Milan, police clashed on Sunday with protesters hurling stones and looting stores during demonstrations over poor public services and rising living costs.

In Gela, on Sicily’s southern coast, farmers say fuel costs have made operating machinery prohibitively expensive. “We cultivate the land, we harvest debts,” said one banner.

“We are completely at a standstill,” said Arcangelo Gambino, a farmers’ representative in Caltanissetta province. “The (fuel) cost has more than doubled.”

Roadblocks by truckers, farmers and steelworkers have disrupted transport across parts of southern Italy, contributing to local fuel shortages and concerns over supermarket supplies.

Tens of thousands marched through Lisbon on Saturday over low wages, housing costs and the rising cost of living, increasing pressure on Portugal’s centre-right government.

In Spain, the eviction of an 87-year-old woman from her home sparked nationwide demonstrations over housing shortages and soaring rents, helping trigger a snap election next month.

Belgium has also seen demonstrations, while large rallies in Albania have been driven by anger over perceived government corruption, a lack of jobs and poor education standards.

The protests reflect broader economic anxieties that are increasingly shaping politics across the continent.

Concerns about purchasing power have become “a major driver of populist politics” across Europe, said Gilles Ivaldi, a political scientist at Sciences Po.

Politicians on both the hard right and hard left have increasingly argued that restoring energy ties with Russia would help lower costs, challenging Europe’s mainstream consensus on support for Ukraine.

Le Pen makes fuel prices an election issue

The latest energy shock comes after years of economic strain following the pandemic and the fallout from Russia’s 2022 invasion of Ukraine.

In France, rising energy costs have provided an explosive backdrop to next April’s presidential election. Macron’s government is struggling with a ballooning budget deficit and pressure from bond markets.

Frontrunner Marine Le Pen of the far-right National Rally and hard-left veteran Jean-Luc Melenchon have both made fuel prices central planks in their campaigns.

“Rising fuel prices are clearly an issue that boosts Marine Le Pen,” said Ivaldi. “I think this is an issue she has owned for quite some time.”

Since the Iran war began, Le Pen’s ratings have improved while Macron’s have slipped, according to polling by Elabe.

Le Pen’s proposal to sharply cut value-added tax on fuel has attracted broad public support. Analysts say the issue resonates strongly with her core voters in rural and semi-rural areas where car travel is often essential.

Far-right parties call for renewed Russian energy ties

In neighbouring Germany, the Alternative for Germany (AfD) is leading national opinion polls after strong gains in local elections. The cost of living topped Germans’ concerns for a fifth straight year in a survey published this month.

German inflation spiked to nearly a three-year high in September, with energy price inflation rising to 14.9%, handing ammunition to the AfD to attack Chancellor Friedrich Merz.

The AfD is pushing to restore energy ties with Russia, arguing that Berlin’s support for Ukraine is needlessly self-sabotaging at a time when Europe’s largest economy and many of its energy-hungry companies are struggling.

Past experience indicates a link between high energy prices and voter turnout for the AfD, said Jan Steckel, professor for the political economy of climate change at the Technical University of Munich.

“Populist parties often frame energy costs as avoidable and attribute them to government policy choices … rather than to the underlying geopolitical shocks that drive them,” he said.

“These geopolitical shocks are … much more difficult to explain. And I think this is why incumbent parties often struggle.”

The argument is gaining traction elsewhere.

In Italy, Prime Minister Giorgia Meloni faces growing competition from National Future, a new far-right party led by former army general Roberto Vannacci that advocates restoring gas links with Russia.

In Poland, one of Ukraine’s staunchest supporters, concern over energy bills is helping boost support for the far-right Confederation of the Polish Crown. Its leader, Grzegorz Braun, has called for a return to buying Russian oil and gas, making the case alongside AfD politicians in Lubmin, where the damaged Nord Stream pipelines land in Germany.

“I love the smell of Russian gas in the morning,” he said.

France’s cities were calm overnight under curfews imposed after last weekend’s scenes of chaos, as protest groups announced a new round of demonstrations next Saturday.

Reeling from a weekend of extraordinary violence, the government is scrambling to reassure people it has learned its lesson from security shortcomings that left the centres of cities such as Paris, Marseille and Lyon largely unprotected from post-demonstration rioters and looters.

Government defends curfews after weekend violence

“The targeted curfews have contributed to the calm of last night,” Prime Minister Sebastien Lecornu said in a post on X, adding that the measure could be extended “where the situation requires it”.

High-school pupil strikes and demonstrations against falling standards and growing dilapidation have spiralled into a national outpouring of anger at rising prices and the sense that health, housing and welfare needs are also no longer being met.

Furthermore, they have stoked a febrile political atmosphere as candidates from the far right and far left lead the field for a presidential election next April and May.

Justice Minister Gerald Darmanin told CNews television that 123 people held at the weekend were in detention awaiting trial. In a separate TV appearance on Monday evening, he said around 2,500 remained in custody for questioning.

The calm of the night hands the government a breather after weeks of protests that have exhausted police and public authorities. But new challenges await next Saturday.

Students and yellow vests plan fresh demonstrations

“We carry on,” France’s main student union UNEF said in a flyer posted on social media, pledging to keep up the pressure on President Emmanuel Macron and his government to fix what students and pupils say is a broken and under-financed education system.

Separately, groups identifying themselves as “gilets jaunes” (yellow vests) called for scattered protest actions against spiralling fuel costs.

The yellow vest movement, which has largely calmed down over the past few years, was born in 2018 during Macron’s first term over plans to raise petrol taxes. Weekly traffic blockades and bouts of street violence continued for months.

Government vows to restore order

Lecornu vowed on Monday that the government would learn lessons from last weekend’s protests and ensuing chaos.

“There were things that went well, and things that were screwed up,” he said. “My determination to restore order is absolute.”

France’s main labour unions, including the CGT – often the driving force behind large organised demonstrations – did not join the calls for protests next Saturday.

French prime minister says he could still impose a state of emergency, after interior minister says police 'lost control' of massive protests over the surging cost of living

Italian Prime Minister Giorgia Meloni has convened an emergency government meeting following two days of violent unrest in Milan and other northern cities, where demonstrators clashed with police, looted shops and damaged public property during protests over living costs and deteriorating public services.

Police brought 271 people to police headquarters following Sunday’s disturbances in Milan, including 220 minors. Of those detained, 32 were formally arrested and another 28 were reported to the judicial authorities, according to figures released on Monday, 19th October.

The violence has prompted the Italian government to consider further restrictions on those involved in violent demonstrations, potentially introducing additional powers directed at organised disorder and juvenile offenders.

Milan city centre hit by looting

The disturbances began during demonstrations on Saturday, 17th October, organised amid growing dissatisfaction over household expenses, public services and wider political grievances.

Although the protests initially included peaceful participants, groups of masked individuals subsequently confronted riot police in central Milan. Officers used tear gas and water cannon as demonstrators erected burning barricades and threw objects at security personnel.

The unrest continued on Sunday, when shops were attacked close to Piazza del Duomo, one of Milan’s principal commercial and tourist areas.

Among the premises targeted were branches of Decathlon, Arc’teryx and Vodafone. Television footage showed damaged shopfronts, overturned street furniture and burning rubbish containers.

According to police figures reported on Monday, 174 of those taken to police headquarters were subjected to preventive detention measures introduced under recent Italian security legislation.

Fourteen members of the security services were reported injured during Sunday’s disturbances, including ten police officers and four members of the municipal police.

The judicial authorities are examining the conduct of individuals suspected of taking part in attacks on businesses and confrontations with officers. Prosecutors have sought custodial measures against several adults accused of offences including devastation, looting and aggravated resistance.

The large proportion of minors among those detained has become a central issue in the political response.

Violence spreads across northern Italy

Milan was not the only city affected by disorder. Saturday’s demonstrations also produced confrontations in Turin, Bologna, Brescia and Bergamo.

Italian police reported arrests across the affected cities, while the scale and organisation of the disturbances have raised questions about whether different groups were acting independently or using demonstrations as opportunities for coordinated violence.

There is not yet sufficient publicly established evidence to attribute the disorder to a single organisation or political movement.

The clashes coincided with major protests in neighbouring France, where similar concerns over living costs and public administration have contributed to increasingly confrontational demonstrations.

Although the grievances overlap, the Italian and French movements have different political backgrounds and organisational structures.

Government considers emergency legislation

Following a meeting at Palazzo Chigi on Monday, Meloni’s government indicated that it was considering a legislative response, potentially through an emergency decree.

According to details of the government discussions, proposals under examination include additional measures against violent offences, changes to preventive policing and possible restrictions addressing road blockages.

Some measures could be drawn from security legislation already under consideration in the Italian Senate. Ministers have also discussed the need for more effective intervention against juvenile offenders.

The meeting included Deputy Prime Ministers Matteo Salvini and Antonio Tajani, Interior Minister Matteo Piantedosi, Defence Minister Guido Crosetto and senior officials from the police, Carabinieri and intelligence services.

The government has stressed that peaceful demonstrations must remain protected while arguing that violence and organised destruction require a stronger response.

No final legislative text had been adopted at the conclusion of Monday’s meeting. A decree could be considered by the Council of Ministers as early as Tuesday, although the precise content remains subject to further examination.

Dispute over responsibility for policing

The unrest has also produced a dispute between Milan’s municipal authorities and the national government.

Mayor Giuseppe Sala questioned the adequacy of the policing arrangements, arguing that the number of officers initially deployed was insufficient to control the disturbances.

Interior Minister Matteo Piantedosi rejected that criticism, while senior government figures accused local political leaders of failing to condemn the violence unequivocally.

The disagreement reflects a wider question over how responsibility for anticipating and containing serious public disorder should be divided between local administrations and national security authorities.

Italy’s opposition has also challenged the government’s handling of the disturbances. Former Prime Minister Matteo Renzi criticised Meloni and Piantedosi over their failure to prevent the violence, calling for a change in leadership at the Interior Ministry.

The political argument is likely to intensify if the government proceeds with emergency legislation. Supporters of stronger police powers argue that the existing framework is insufficient to deal with rapidly organised disturbances, while opponents will scrutinise the proportionality of new restrictions and their effect on peaceful protest.

The immediate test for the government will be whether additional legal powers can improve public-order operations without replacing effective policing, intelligence gathering and judicial enforcement.

Around 1,800 people arrested after hundreds of shops looted, a historic building burned to the ground, and a Paris synagogue vandalized; some 500 emergency personnel injured

More than half a million people took part in demonstrations across France on Saturday, 17 October, as protests over living costs and education deteriorated into riots, looting and attacks on public buildings in several major cities.

France is assessing extensive damage following nationwide demonstrations on Saturday, 17 October, that brought hundreds of thousands of people onto the streets and resulted in more than 1,200 arrests. Prime Minister Sébastien Lecornu said 150 police officers and gendarmes were injured as violent groups attacked public buildings, looted businesses and confronted security forces.

According to figures released by the French authorities, approximately 550,000 people participated in 110 marches across France, including 110,000 in Paris. Organisers, including trade unions and student associations, placed nationwide participation at 800,000.

The demonstrations represented a considerable escalation of the movement that began in September over deteriorating conditions in French secondary schools. The protests have since expanded into a broader campaign against rising living costs, public spending restrictions and the government’s economic policies.

Violence spreads beyond Paris

In the French capital, confrontations erupted around Place de la République, where masked groups threw paving stones, fireworks and other projectiles at police. Security forces responded with tear gas and water cannon as vehicles and rubbish bins were set alight.

Businesses along Boulevard Magenta and neighbouring streets were targeted, with shops broken into and goods stolen. Several central Paris Métro stations were closed as authorities attempted to restrict access to sensitive government locations.

Although the main authorised procession remained largely peaceful, violence continued elsewhere in the capital into Saturday evening.

The disturbances extended well beyond Paris. In Limoges, the historic town hall suffered extensive fire damage, with parts of its roof collapsing. Regional authorities described the destruction of the 143-year-old building as a major loss to the city’s architectural heritage.

In Marseille, groups forced their way into the town hall after using street barriers to ram its entrance. Municipal premises were vandalised before police regained control.

Further incidents were reported in Lyon, where a tourist office was attacked and a fire started, and in Bordeaux, where the official residence of the Gironde prefect was ransacked. Police also reported attacks or attempted break-ins at public buildings in Lille, Calais and Brest. The scale of the disturbances placed security forces under considerable pressure.

Government blames organised extremist groups

Lecornu accused organised far-left groups of deliberately instigating violence in several French cities. Nuñez similarly attributed much of the destruction to radical groups and individuals exploiting the demonstrations to loot businesses.

President Emmanuel Macron condemned attacks on public property and commercial premises, promising that those responsible would face prosecution.

The government has not announced a state of emergency, although authorities are reviewing the scale of the damage and the security response.

The mayor of Paris, Emmanuel Grégoire, described the destruction across parts of the capital as extensive and distinguished the peaceful protest movement from those responsible for vandalism.

Student unrest becomes a national movement

Saturday’s demonstrations followed several weeks of disruption across France’s education system.

As EU Today reported earlier this month, between 400 and 500 secondary schools faced partial or complete closures as students protested against teacher shortages, overcrowded classrooms and deteriorating facilities.

The subsequent confrontations with police intensified political tensions, with student organisations accusing authorities of using excessive force and police representatives complaining of inadequate protection.

A further controversy emerged on Saturday after a 17-year-old demonstrator in Saint-Étienne suffered a serious hand injury. An investigation was opened into the incident and assigned to France’s police inspectorate, the IGPN. Reports linked the injury to a grenade thrown by police; the precise circumstances remain under investigation.

The latest demonstrations also marked a revival of the Gilets Jaunes, or Yellow Vest, movement, which emerged in 2018 in opposition to fuel taxation and subsequently developed into a wider challenge to Macron’s economic programme.

Trade unions, including the CGT, joined calls for higher wages and pensions, lower consumer prices and increased investment in public services.

Political consequences for Macron and Lecornu

The unrest presents another challenge for Lecornu’s government as it attempts to manage France’s public finances ahead of the 2027 presidential election.

The demands for increased spending on education, wages and public services come as ministers face pressure to reduce the budget deficit and control public debt.

The political implications are already apparent. Jean-Luc Mélenchon, leader of the hard-left France Unbowed movement, has supported the student protests while opposing looting and destruction. Marine Le Pen has condemned the rioters and accused Mélenchon’s party of helping to legitimise the unrest.

The latest disturbances also follow growing criticism of the government’s policing strategy, particularly the use of riot-control weapons during demonstrations involving minors.

With municipal authorities calculating the cost of damage to public buildings and commercial premises, Lecornu has instructed ministers to support affected businesses. The immediate challenge is to restore public order while addressing a protest movement that has expanded considerably beyond its original demands for improvements in French schools.

Property torched as police clash with demonstrators at Piazza del Duomo, as well as in Bologna; at least 50 detained, as several injuries reported, amid larger protests in France

As hundreds of thousands protest cost of living, city hall torched as police use tear gas; teen protester loses hand after picking up stun grenade; PM blames 'ultra-left,' months before presidential election

French authorities are preparing for hundreds of demonstrations on Saturday, 17 October, as student unrest converges with protests over living costs, public spending and government policy. Up to 40,000 demonstrators are expected in Paris, where police and organisers remain divided over march routes.

France is preparing for a nationwide wave of demonstrations on Saturday, 17 October, with approximately 500 protest actions under consideration and more than 90 marches being organised, according to the Interior Ministry. The mobilisation brings together high-school students, trade unions, farmers and supporters of the Yellow Vest movement, raising the prospect of further confrontation after nearly a month of unrest.

Police estimates suggest that around 40,000 demonstrators could gather in Paris, with approximately 150,000 more expected elsewhere in France. The figures remain preliminary, while authorities warn that some protests could involve road blockades, disruption to essential infrastructure and violent clashes.

Interior Minister Laurent Nuñez initially outlined preparations for 250 gatherings and 80 marches on Friday morning. Subsequent assessments from his office indicated that as many as 500 actions were being considered, although not all had been formally organised.

Paris Faces Dispute Over Demonstration Routes

The authorities are particularly concerned about developments in the capital, where negotiations between police and protest organisers have failed to produce agreement over the proposed routes.

Paris police prefect Patrice Faure has rejected proposals for marches terminating near the Opéra district or Place de la Concorde, citing security concerns surrounding central government institutions.

According to details of the security preparations, police have proposed an alternative route between Place de la Bastille and Place de Clichy. The CGT trade union and climate campaigners have accepted the proposal, but student organisations and Yellow Vest representatives continue to oppose it.

Prime Minister Sébastien Lecornu has convened an interministerial crisis unit to coordinate the government’s response. Security officials have warned that attempts to obstruct major transport routes or critical infrastructure will not be tolerated.

The Interior Ministry has also indicated that stun grenades, whose use was suspended during the student protests, could again be deployed in cases of particularly serious urban violence.

Yellow Vests Return Amid Rising Living Costs

Saturday’s demonstrations are being promoted as a revival of the Yellow Vest movement, which emerged in 2018 following opposition to fuel taxation before developing into a broader protest against living costs, economic inequality and government policy.

The latest mobilisation has gathered support from organisations demanding measures to address rising fuel, energy and food prices. Campaigners are also challenging the government’s proposed 2027 budget and its implications for public services.

The agricultural union Confédération paysanne has called on farmers to join the demonstrations, arguing that rising agricultural fuel costs and deteriorating conditions in rural communities have increased pressure on producers.

The union has also linked its demands to environmental policy, public-service provision and access to affordable food.

The CGT, student unions and climate organisations have similarly expressed support for the protests, while political backing has come from La France Insoumise and the French Communist Party.

Student Protests Enter Their Fourth Week

The mobilisation follows weeks of demonstrations involving secondary-school pupils, teachers and public-sector workers. What began as protests over shortages of teachers, overcrowded classrooms and deteriorating school buildings has developed into a nationwide confrontation over education policy and policing.

As EU Today previously reported, between 400 and 500 secondary schools faced partial or complete disruption earlier this month as students organised blockades and demonstrations.

The movement has subsequently expanded beyond its original educational demands, with student organisations raising concerns about university admissions procedures, police tactics and government spending priorities.

The scale of the unrest has placed considerable pressure on French authorities. According to figures from the Justice Ministry, 6,877 people were placed in police custody during the protests between late September and 8 October, approximately 86 per cent of them minors.

Violence during the demonstrations has resulted in injuries among police officers, students and educational staff. Clashes on 8 October led to 504 arrests and injuries to 48 police officers, according to Interior Ministry figures.

Education Minister Édouard Geffray has announced emergency measures to address teacher shortages, including the deployment of replacement teachers. The ministry says 2,000 of the 3,000 promised replacements have already been assigned, but student organisations maintain that the measures are insufficient.

Growing Pressure on the French Government

The planned demonstrations come as France faces a difficult debate over public spending, taxation and the 2027 budget. Lecornu’s government must balance demands for higher salaries and increased investment in education against mounting pressure to reduce the deficit.

France’s deteriorating public finances have already attracted scrutiny from eurozone partners, while domestic opposition to spending restraint has become a central issue ahead of the 2027 presidential election.

The convergence of student organisations, trade unions and Yellow Vest campaigners could broaden the protests beyond the education sector, particularly if demonstrations over living costs attract participants who have not joined the recent school protests.

However, the extent of that mobilisation remains uncertain. Online protest maps contain substantially more proposed actions than the authorities’ estimates, and participation figures will not be established until Saturday.

For the government, the immediate test will be whether the demonstrations remain peaceful and whether the authorities can prevent disruption to transport networks and public services without provoking further confrontations with protesters.

Portuguese Prime Minister Luís Montenegro has urged an end to the international turmoil behind soaring oil prices, warning that consequences are being felt in Portuguese homes, businesses and shops as

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Prime Minister Luís Montenegro has called for a swift resolution to the international tensions driving up oil and fuel prices, describing the situation as “senseless” and warning that rising costs

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Thousands of people took to the streets of Lisbon and Porto on Saturday, October 10, to protest against the rising cost of living, unaffordable housing and wages that they say

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Portugal’s prime minister has called today for a “coordinated response” at the European level to tackle the rising cost of living, arguing that “solving people’s practical problems” is the “best

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