Cant comment to much on the Cyprus question as i dont know the situation there job wise etc. But In italy I know of plenty of TnT's who have become legal and now pay tax. They do the Jobs the italians dont wanna do.
They are treated very well by most Italians from what I have seen. Dont seem to take from the state, cause problems and only contribute to the country.
Like others say if not breaking laws not stopping those who are legally entitled to a job from working and trying to fit into the local community good luck to them..