The effects of the economic and financial crisis, as well as the austerity policy, are another key area of the FES. Due to the crisis, the Greek-Cypriot society is confronted with a dramatic increase in unemployment, particularly among young people, and a declining standard of living.
The economy in the north is much less developed. Since 2011, Turkey has tried to reduce its financial transfers through privatizations and economic reforms. The activities of the FES aim at developing guiding principles and practical policy options through a constructive dialogue with decision-makers. Expert knowledge from the EU is provided in order to dissolve clientist structures and to address weaknesses in the economic and social policies. In addition, a public debate on these issues is encouraged.