The Government has already announced support measures that are being implemented and which exceed €1 billion, President of the Republic Nikos Christodoulides said on Tuesday.
Speaking to journalists as he arrived at a conference in Limassol, and asked whether, ahead of the upcoming EU Summit, we should expect additional measures to tackle the rising cost of living, the President of the Republic said that “Cyprus has taken a clear position in the Council of Economic and Finance Ministers, particularly regarding energy prices. Efforts are continuing at European level, at the level of leaders. All of these issues were discussed very recently in Croatia, at the Summit of Mediterranean countries.”
“At national level, we have so far announced measures, and measures exceeding €1 billion are being implemented. I am pleased that we have the financial capacity to do so,” he said.
He said that the government is moving in three directions. The first concerns measures that deliver immediate results. “I refer, for example, to the zero VAT rate on several products, and so on.”
The second, he said, concerns increasing disposable income. “We did this through tax reform, through the agreement on the Annual Tax Allowance, through two increases in the minimum wage. We are now moving forward with pension reform.”
The third pillar, the President said, on which work is under way, involves finding more institutional, permanent solutions. “I refer more specifically, when we talk about electricity, to Vasiliko, to advance developments for the arrival of natural gas.”
“So, we are moving based on a plan along three directions: immediate relief, increasing disposable income, and institutional measures that will provide permanent solutions,” he said.
He added that over the next two days, in Brussels, in the context of the European Council, “we have some specific ideas, which the Finance Minister also referred to at ECOFIN, and I believe that a collective decision at the level of the 27 will help even further.”
“I repeat that we have the financial capacity, thanks to our responsible fiscal policy, to take measures. Measures that have not been taken by other countries. I fully understand the situation regarding the cost of living, which is why we are acting on the basis of a specific plan and design,” he said.
Asked about the possibility that the European Commission would allow a derogation to zero-rate taxation on petroleum, the President of the Republic said: “Beyond the measures we have already announced, we are examining many other measures, some of which require the green light from the Commission. Others do not. We are monitoring the situation daily, how it evolves, and we are here to respond.”
Asked whether the steps will be taken that will truly turn Cyprus into a regional Fintech hub, the President of the Republic said: “I believe that the holding, for the first time, of such a conference is itself proof of the direction in which we are moving, the direction in which our country is gradually emerging as a hub of economic activity that concerns, that touches, every sector.”
“We are in the midst of two wars, one of them in our neighbourhood. Look at the situation in Europe: our country is here with one of the strongest growth rates in Europe, with unemployment having fallen to 2008 levels; we are in conditions of full employment, with an economy rated in category A by all international rating agencies, with a public surplus and a budget sent to the House that is in surplus for the third consecutive year. And all of these are not merely indicators. They are what allow us to invest in Education, Health, Housing and the Welfare State.”
“For us,” the President said, “and based on our philosophy and our ideological-political framework, real growth must be returned to society.”
“That is why we are here, and through a responsible fiscal policy – and I am truly pleased with the economic data, because imagine if we had the economic conditions of 2012-2013: not only would we be unable to announce measures, but we would also proceed with cuts, as was done then due to an irresponsible fiscal policy – the prospects for our country are enormous, and we are here to make the most of them.”
Asked to comment on DISY President Annita Dimitriou’s withdrawal of interest in seeking the party’s candidacy for the Presidential Elections, the President of the Republic said: “Why should I comment on the decision of a political leader? It is her decision. Mrs Dimitriou has already explained her reasons, so I have nothing to comment on.”
