Comprehensive proposals leading to the body's vision to the future of Cyprus were presented by the President of the Cyprus Chamber of Commerce & Industry (CCCI), Stavros Stavrou, at the Chamber's 98th Annual General Meeting.
Pointing out, among other things, that the agreement reached on the Cost of Living Allowance (CoLA) does not modernise the institution, Stavros Stavrou on 8 December warned that with the agreement and the gradual reinstatement of CoLAto 100% without escalation and its extension to minimum wage beneficiaries, labour costs will increase significantly, without a corresponding increase in productivity and business development, something that concerns the CCCI.
Also noting that the tax reform must strengthen investments and the economy, he said that the CCCI in its proposals calls for incentives for the energy transition of businesses, encouragement of industrial investments, strengthening of technological businesses and the return of talented and skilled professionals to Cyprus, as well as the reduction of administrative burdens in the tax obligations of businesses, while for the modernisation of the tax framework, the Chamber calls for the digitalisation of the state's tax services, the simplification of tax procedures and the abolition of unnecessary taxes as well as faster service to taxpayers.
Speaking before the members of the CCCI, Stavrou stressed that we are living in a period of intense upheaval on many levels, both on the international scene and in Cyprus. As he said, the ongoing war in Ukraine, the peace agreement in Gaza, economic turmoil, energy readjustments, the entry of artificial intelligence into our lives, new technological developments and, in general, the changes in the international, regional and local political, economic and social developments, make the work of the CCCI more complex and its mission more demanding.
As he characteristically said, "we, studying and recogniwing the important role of the CCCI, as well as the new and changing conditions, are proceeding with the continuous upgrades of our services, redefining our goals and enriching our actions with new ideas, so as to respond to the new realities of our time and the increased demands of the business world and our ecosystem."
The Cyprus issue
Focusing on the Cyprus issue, Stavrou stated that, seeing today, the broader geopolitical environment and the intentions of foreign powers that can influence the course of the Cyprus issue, it is believed that another effort will soon be made to resolve it.
Contributing to this, he added, are the international and regional climate, the efforts of President Nikos Christodoulides, the new energy developments in our region and (CCCI hopes) the assumption of leadership of the Turkish Cypriots by Tufan Erhurman.
We expect, he said, that all these factors will contribute to Turkey finally changing course, aiming for a truly correct and functional solution to the Cyprus problem.
The wager for a successful EU Presidency
Regarding Cyprus' assumption of the Presidency of the EU Council, Stavrou said that certainly, the stakes for a successful Presidency of the European Union are very high, but the expected benefits for Cyprus will be even greater.
Therefore, he pointed out, we should utilise the EU Presidency to promote our cities, economy, tourism, investments, entrepreneurship and many other key sectors of our island.
The proposals for the economy
Focusing on the economy and the CCCI's proposals, he requested the:
- Continuation of a structured and prudent fiscal policy
- Reorganisation of the state budget, so as to reduce inflexible expenditures to a minimum and increase spending for development purposes.
- Provision of only targeted support measures to groups of the population that really need them.
- Containment of the state payroll, which represents 28% of the state budget and is considered significantly higher than appropriate.
- Limitation of new recruitments in the public service.
- Complete computerisation and digitalisation of state services.
- Decentralisation of state services and expansion of interchangeability among public service personnel.
- Abolition or modernisation of outdated laws and regulations, which only serve to increase bureaucracy.
- Reviewing public service plans, so that they are harmonised with current conditions and end the phenomenon of everyone being considered excellent. No matter how much we try to convince you that this has changed, believe me, we are not convinced, he said.
The CoLA agreement does not modernise the institution
Regarding the Cost of Living Allowance, Stavrou clarified that "in our opinion, this compromise, which the CCCI will fully respect, leads neither to the complete modernisation of the institution, nor to the abolition of its distortions and inequalities."
It is a solution, he said, that helps maintain labour peace and avoid an unnecessary and destructive conflict that could hinder our country's development prospects at a critical period for the economic stability we have built.
In this context, he called on the trade unions to appreciate the positive attitude of the employers' organisations and to realize that businesses do not have unlimited strength.
He also said that the unions must realise that we cannot constantly increase the burden on the economy, which is already suffering from the excessive state payroll, the many inflexible expenditures, reduced competitiveness and productivity, and difficulties in exports and more broadly in entrepreneurship.
Stavrou also added :
- With the agreement reached and the gradual reinstatement of CoLA to 100% without escalation and its extension to minimum wage beneficiaries, labour costs will increase significantly, without a corresponding increase in productivity and business development, which is something that concerns the CCCI.
Stavrou then reiterated the CCCI's established position that "we want a fairer, more modern system of support for employees, which will reward real performance, will not put a burden on the competitiveness of businesses and will not burden the state with new expenses."
Appeal to unions
Regarding labour issues, he said that the CCCI cannot tolerate actions or acts that causelessly and unjustifiably poison labour relations and cause disruption in the work environment.
In fact, he called on the trade union movement to treat the right to strike with the seriousness it deserves. The economy and businesses, he said, are in a critical period that requires calm and labour peace.
In the same context, he again called on the government to promote legislative regulation for strikes in essential services, in order to end unnecessary and destructive mobilisations in the broader state sector, which create enormous inconvenience to the public and have major impacts on the economy.
Tax reform
Regarding the tax reform, he said that the CCCI in its proposals, requests incentives for:
- Energy transition of businesses
- Encouraging industrial investment
- Strengthening technology businesses
- Return of talents to Cyprus
- Reduction of administrative burdens on businesses' tax obligations
Also, for the modernisation of the tax framework, it requests the:
-Digitalisation of state tax services
-Simplification of tax procedures
-Abolition of unnecessary taxes
-Faster service to taxpayers
The CCCI's goal, as he said, is to adopt a modern, flexible and simplified tax framework, which distributes tax burdens equally and fairly and takes into account the new conditions of the Cypriot economy and trends in the European Union.
Reforms
Regarding reforms, he stressed that we must admit that the correct and necessary reforms carried out in recent years suffer from distortions, poor implementation and problems. Therefore, he pointed out, a reassessment of the various reforms is needed to correct the shortcomings, which hinder the provision to citizens and burden the economy with large expenses.
Energy
Regarding energy costs, he said that the CCCI insists that we must take very serious decisions regarding the energy sector. As Stavrou emphasised, the scenario for the import of natural gas, for the exploitation of our own deposits in the EEZ, for the electrical interconnection of the GSI with Greece and Israel, for the completion of energy infrastructure and the strengthening of RES must be immediately clarified.
In the energy sector, the CCCI requests:
- Healthy competition, transparency and lower electricity prices.
- Network upgrade and increase in RES capacity
- Self-generation, storage and energy savings in businesses
- Strong incentives, grants and special plans for industries.
Investments - bureaucracy
The President of the CCCI made particular reference to the importance of investments, the need to combat bureaucracy and accelerate procedures for digital transformation, the lack of labour, the support of industry and trade, the increase in productivity and competitiveness, and the pension problem.
CCCI's proposals
Stavrou, after describing the CCCI's proposals as strategies that lead with vision to the future of Cyprus, clarified that "we reject the claims of various parties that as employers we seek to compress the incomes of employees so that our member companies can make super profits." This is a myth for those who refuse to see the new conditions, the realities and the future, he said.
We, he added, cannot close our eyes to the new era and let our country regress. We look ahead, modernise, adapt our methodologies and practices and move forward. We want the same for our economy and our country.
Concluding, and after presenting the CCCI's actions for 2024-25, he emphasised the following:
The CCCI will continue to work consistently towards:
- An extroverted, sustainable, and resilient economy
- Strong and competitive entrepreneurship
- A prosperous and happy society
- And for a modern, efficient and development-friendly state
And he concluded with the following:
- The challenges are great, but our determination is greater.
With unity, cooperation and vision, we can shape the future that Cyprus, businesses and society deserve.
Addresses to the CCCI assembly were also delivered by the President of the Republic, Nikos Christodoulides, and the President of the Cyprus Employers and Industrialists Federation (OEB) George Pantelidis.
The assembly was attended by political party leaders or representatives, government ministers, Members of Parliament, mayors, state officials, foreign ambassadors and members of the Chamber.
(Source: InBusinessNews)
