"The government has already announced support measures that are being implemented and that exceed 1 billion euros."
This was stated by the President of the Republic, Nikos Christodoulides, upon arriving at the Forbes conference in Limassol, when asked whether, in light of the upcoming EU Summit, we should expect additional support measures to combat inflation. He explained that “Cyprus has taken a specific position in the Council of Finance Ministers, particularly regarding energy prices. Efforts are continuing at the European level, at the leadership level. All of these issues were discussed very recently in Croatia, at the Summit of Mediterranean States.
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“Beyond that, at the national level, we have so far announced measures—measures totaling over 1 billion euros—and I am pleased that we have the financial capacity to do so. We are moving in three directions. The first direction concerns measures that yield immediate results. I am referring, for example, to the zero VAT rate on a number of products, and so on. The second pillar concerns increasing disposable income. We’ve done this through tax reform, through the agreement on the ATA, and twice by raising the minimum wage. Now we are moving forward with pension reform. The third pillar we are working on involves finding permanent solutions through institutional reforms. And I am referring more specifically—if we are also talking about electricity—to Vasilikos, to set the stage for the arrival of natural gas.”
The President of the Republic stated that “we are proceeding on the basis of a three-pronged plan: immediate relief, an increase in disposable income, and institutional measures that will provide permanent solutions.”
“And over the next two days, in Brussels, within the framework of the European Council, we have some specific ideas that the Minister of Finance also mentioned at ECOFIN, and I believe that a collective decision among the 27 will help even more. I repeat that, thanks to our responsible fiscal policy, we have the financial capacity to take measures—measures that other countries have not taken. I fully understand the situation regarding inflation, which is why we are proceeding on the basis of a specific plan and strategy.”
When asked about the possibility that the European Commission might grant an exemption to eliminate the tax on diesel fuel, the President of the Republic said that “In addition to the measures we have announced, we are considering many other measures, some of which require the Commission’s approval. Others do not. We are monitoring the data daily, seeing how the situation is evolving, and we are here to respond.”
When asked whether the steps that will truly transform Cyprus into a regional Fintech hub will be taken, the President of the Republic said, “I believe that holding for the first time, of such a conference is proof of the direction in which we are moving—a direction in which our country is gradually emerging as a hub of economic activity that concerns and touches all sectors.
“We are in the midst of two wars, one of them right in our neighborhood—you see the situation in Europe—and yet our country is here with one of the strongest growth rates in Europe, with unemployment having fallen to 2008 levels, we have full employment, an economy rated in the A category by all international rating agencies, a budget surplus, and a budget submitted to Parliament showing a surplus for the third consecutive year. And all of these are not merely indicators. All of these are what allow us to invest in the sectors of education, health, housing, and the welfare state. For us, and in line with our philosophy and our ideological and political framework, real growth must be reinvested in society. That is why we are here, and through a responsible fiscal policy—and I am truly pleased with the economic data, because just imagine if we had the economic data from 2012–2013; not only would we be unable to announce measures, but we would also be implementing cuts, as was done back then due to an irresponsible fiscal policy—our country’s prospects are enormous, and we are here to make the most of them.”
