Cyprus may introduce further measures to support households and businesses if necessary, President Nikos Christodoulides has said, stressing that fiscal discipline would be maintained while the government pursues tax and pension reforms and increases investment in public services.
Speaking in Nicosia on 22 October, the President said the country’s public surplus, which he attributed to responsible fiscal management, had enabled a surplus budget for a third consecutive year and created room for reforms.
He cited a tax reform, the first in 23 years, aimed at boosting household disposable income and supporting businesses, as well as pension reform intended to increase benefits, particularly for low-income pensioners.
The government, he added, had also raised the minimum wage twice, restored the Cost-of-Living Allowance (CoLA) to 100% and increased investment in healthcare, education, housing and social welfare, he said.
“If the need arises, we will look at further measures,” he said, adding that spending on the welfare state had increased by 6% or more in almost every year.
However, he ruled out being drawn into a cycle of pre-election spending pledges.
“We will not be carried away, as we were not during the parliamentary elections, by a policy of handouts or make statements to satisfy audiences or please people,” he said.
The President reiterated that fiscal responsibility was essential to sustaining reforms and social support measures.
He stressed that fiscal policy must take account of regional and international developments and safeguard the country’s long-term financial stability.
