Angastiniotis shares criticism, suggestions and concerns as he leaves CCCI helm

Christodoulos Angastiniotis, in his final address as the president of Cyprus Chamber of Commerce and Industry, expressed concern and criticism about aspects of the local economy, including the defamation of Cyprus abroad, the inflation of government spending, malfunctions in the National Health System, trade union strikes, and the large increase in interest rates, among others.

Speaking at CCCI’s 96th Annual General Assembly, held in Nicosia, Angastiniotiss said that "in difficult times, where many things were hanging by a thread, we managed to prove the many advantages of the business world, to show resistance to problems and to we successfully manage the big challenges."

Referring to the ongoing war in Ukraine and the crisis in Israel, he said that "fluidity and uncertainty have come to be seen as synonymous with normality."

Economy and spending

More specifically, regarding the economy, Christodoulos Angastiniotis pointed out that despite positive conditions, there are several risks. He made special reference to the state's expenses, which - as he said - are constantly increasing, without it being guaranteed that the same will happen in the future with its revenues.

In particular, he underlined that the recent case of the granting of increased Cost of Living Allowance (CoLA) at a cost of approximately €60 million, the many supplementary budgets, the high costs for the maintenance of the State Health Services Organisation and the multiple recruitments of new staff, were indicative examples of the ease with which the state increases its expenses.

The CCCI, as he underlined, disagreed and disagrees with these arrangements and emphasises the need for the government to become more frugal in the inflation of state expenditures.

Indeed, addressing the Minister of Finance, he also mentioned the saying of an old banker that "You save, Minister of Finance, when you have money, and not when you don't..."

Economy measures

After pointing out that the CCCI is concerned by the forecasts of the government and the EU regarding the slowing down of the growth rate to 2-2.5% of GDP in 2023, Christodoulos Angastiniotis suggested the following:

• Implementation of the reform and other cuts to the public service.
• Containment of the state payroll and non-productive costs.
• Revision of CoLA, so that its variation depends on productivity and is targeted based on income criteria and not horizontally as it is poorly granted today.
• Ending bureaucracy in the state and its services.
• Digitisation of government services to reduce recruitment needs and improve service to businesses and citizens.
• Greater promotion of interchangeability in the public service.
• Technological connection between government departments to avoid waste of resources and time.
• Decentralisation of government services.
• Simplifying procedures for investment and other development planning.

The defamation of Cyprus

Angastiniotis was particularly critical regarding the defamation of Cyprus, due to the violation of sanctions, saying that:

"I inform you that many investors who are already in Cyprus contact the CCCI and ask us what our state will do to protect the name of our country from the defamation caused by all these publications."

And he added:

"The CCCI is not going to accept this defamation anymore, that's why we say clearly to everyone that there should be no tolerance for such incidents. Where violations or violations of sanctions are found there should be an immediate state response and punishment.

In fact, addressing the President of the Republic, he said, "You are right, Mr. President, that we must finally put an end this issue."

Inflation and interest rates

Regarding inflation and costliness, Christodoulos Angastiniotis said that the state cannot support its citizens forver and called for long-term strategies to contain energy costs.

In the same context, he opposed the institution of e-kalathi, because "the CCCI cannot accept manipulation of the market with state intervention".

On the subject of interest rates, he expressed the concern of the CCCI on the impact on households and businesses.

As he noted, while there have been 11 interest rate increases, inflation continues to be at high levels, while serious distortions have been created in the money market, such as the compression of the living standards of households, the difficulties in the liquidity of businesses, the decrease in demand for new loans, the effects on business activity, the reduction of investments and maybe in the near future, the increase of "red" loans.

These side effects, he pointed out, are very serious and will certainly affect the course of our economy.

He also called on the banks to review their policy and not, according to Angastiniotis, use the opportunity to show excessive profits. In this context, he asked them to look again at the issue of their high fees and some unjustified, in his expression, obstacles that are invoked for the smooth financing of businesses and households.

Industrial relations

He also expressed strong criticism for what is taking place in the labor sector, saying that the CCCI is disappointed by the trade union movement's stance on labour claims.

In this context, he called on the trade union movement to show self-restraint and ‘put their arrows back in their scabbards,’ saying that with the way the issue is being politicised it is not only the companies that are affected, but also itheir own members.

Angastiniotis added that many of the CCCI’s members have reached their limits and are saying they will be forced to suspend operations if they are pressured more by the unions. Be careful, he pointed out, because the behaviors and tactics of some may even lead to a "lockout" of businesses, with a direct consequence of undermining the entire economy and society.

He also criticised the strikes in essential services, giving as an example the recent work stoppage at State Health Services Organisation, and asked the President of the Republic to take the initiative to promote the bill for legislative regulation in essential services.

Regarding the reforms, he asked for their immediate promotion and implementation, also indicating the need for a holistic and well-studied tax reform.

He asked the same regarding digital transformation, noting, as he said that despite the progress made, Cyprus is moving at a turtle's pace in digital technologies.

National Health System and its malfunctions

He harshly criticised what is happening in the National Health System, sounding the alarm and warning everyone that an end should be put to the dysfunction of the NHS once and for all.

In fact, addressing President Christodoulides, Angastiniotis told him that "your own dynamic intervention is needed to rationalise and supervise this huge social conquest called NHS, otherwise without supervision and rationalisation it will have the fate of the Cooperative Bank and Cyprus Airways."

The CCCI’s proposals

Angastiniotis then submitted the CCCI’s proposals for development, asking the government to take the initiative to redesign and enrich our economic model.

In view of the end of his term and his departure from the presidency of the CCCI, he then gave a personal report of his time at the helm, saying the following:

"It's time to part ways. A long and great journey has come to an end. In the 6 years of my presidency, I did everything I could for the good of the CCCI and the Chamber institution. I have a clear conscience that I met your requirements and expectations.

However, I want you to know that I am leaving with my head held high, I am leaving the presidency of the CCCI, but I will not stop being with you and by your side. The CCCI, for me, is my life...".

The CCCI assembly, where the President of the Republic Nikos Christodoulides also spoke, was attended by party leaders or representatives, ministers, MPs, mayors, government officials, businessmen and members of the CCCI.

(Source: InBusinessNews)