Cyprus takes over the European Union Presidency in the second half of 2012 in a period of continuing uncertainty due to the world economic crisis. The vocational education and training (VET) system of Cyprus is playing a significant role in dealing with the immediate adverse effects of the crisis on the labour market as well as in laying the foundations for future development. Cyprus, a country with limited natural resources, has always relied on its human resources to achieve a competitive advantage in an era of globalisation, technological advances and demographic changes. The education and training system is vital in providing Cyprus with people who have the necessary knowledge, skills and attitudes and are able to respond flexibly and efficiently to the challenges of the 21st century. To continue to fulfil the expectations of the Cypriot economy and society, the education and training system, including VET, is undergoing essential reforms. The major challenges of the education and training system, as outlined in the national reform programme, is to encourage further participation in lifelong learning and to increase participation in VET. Crucial milestones in this direction are the establishment of post-secondary institutes for technical and vocational education and training, which will offer students an intermediate level of education between upper secondary and tertiary education, as well as the establishment of new modern apprenticeship, designed to constitute a viable, alternative form of training and development for young people. This report provides a concise insight into the state of the VET system of Cyprus in a period of major reforms and amidst the uncertainties resulting from the economic crisis. Appended are: (1) Acronyms and abbreviations; (2) Bibliography; (3) Websites; and (4) Members of the Cyprus ReferNet consortium. (Contains 10 tables, 8 figures and 40 footnotes.)