Given the current circumstances of the international energy crisis, the government’s efforts are focused on keeping fuel prices in check rather than achieving significant reductions, Finance Minister Makis Keravnos, on Tuesday, announcing that he would once again raise the issue of greater flexibility in the application of fiscal rules at the European level in order to address the effects of the crisis.
Speaking to reporters on the sidelines of an event marking European Statistics Day, Mr. Keravnos also noted that the government is monitoring the implementation of the support measures that have already been announced, noting that, according to an initial assessment by the Consumer Protection Agency, a 5% decrease was recorded for certain basic products.
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When asked whether rising oil prices make further support for citizens necessary, as the increases appear to be offsetting the existing measures, the Minister of Finance stated that the international situation does not allow for significant reductions to be expected.
He said that Cyprus is at the center of four wars, which “have created a massive global energy crisis,” adding that the goal must be “to keep prices in check and not expect drastic reductions.”
He noted that the government has already reduced tax rates to the lowest level permitted under the European framework, while at the same time it has raised the issue of securing a derogation to enable further reductions. As he explained, securing such a derogation is not an easy process, referring also to the relevant discussions that have taken place at the level of heads of state.
Mr. Keravnos stated that he intends to raise the issue again at the next meeting of European Union finance ministers, which he will attend in about two weeks. “There must be flexibility in the implementation of European economic governance, because we cannot design a monolithic policy that fails to take into account current circumstances, especially those we are facing today,” he said.
He added that the issue would be raised jointly with other finance ministers, as had been done at a previous meeting.
Support measures are being implemented
Referring to the possibility of a new package of measures to address rising prices, the Minister of Finance noted that the measures that have already been announced are just beginning to be implemented.
As he said, some are being implemented today, while others require prior approval by Parliament, and he expressed the view that they will be voted on within the next few days. He added that, once the remaining measures are implemented, a new assessment will follow, and the impact will be monitored on an ongoing basis. “I think we are heading in the right direction, always within the limits of our capabilities and within the framework of European economic governance,” he said.
He emphasized that the government is monitoring developments and will continue, as he put it, to stand by citizens and businesses, depending on the needs that arise.
No further comments on the GSI issue
When asked about developments surrounding the Great Sea Interconnector (GSI) project, the Minister of Finance declined to offer any further comment. “I have no further comment,” he said, noting that the issue had been discussed in recent days, as well as during yesterday’s debate in Parliament, by the Minister of Energy.
