Marios Clerides to join the Cyprus Fiscal Council

The Cabinet has decided to appoint economist Marios Clerides as a member of the Cyprus Fiscal Council, pending House Finance Committee approval.

In accordance with the relevant law, the House Finance Committee must be consulted before the appointment is finalised.

This Cabinet’s decision will be put under the microscope of the Finance Committee on Monday, 9 September, in the presence of the Ministry of Finance’s Permanent Secretary, George Pantelis, and the Chairman of the Fiscal Council, Michalis Persianis.

However, the Committee has already been informed of the intention to appoint Clerides to the Fiscal Council through a letter sent by the Minister of Finance, Makis Keravnos, through which he states that he was authorised by the Cabinet:

• To consult with the Parliamentary Finance and Budget Committee, regarding the appointment of Marios Clerides, as a member of the Fiscal Council and
• To bring the matter back to the Cabinet, after receiving the opinions of the Parliamentary Finance and Budget Committee for the final decision on Clerides’ appointment.

Keravnos' letter to the Finance Committee was accompanied by a copy of the Cabinet’s decision, which was taken in its session on 5 August.

The composition of the Fiscal Council

It is noted that, according to article 20(1) of the "Fiscal Responsibility and Fiscal Framework Law", the Fiscal Council is composed of three members, appointed by the Cabinet, after consultation with the House Finance and Budget Committee, one of whom acts as Chairman, on a full-time basis.

The term of office of the member appointed as Chairman is for six years, while for the remaining two members, their term of office is on a part-time basis for five and four years, respectively.

The term of office of the two members of the Fiscal Council is decided by drawing lots between them, while both of these members are paid per meeting (on horarium), as determined by the Cabinet.

In case of replacement of any of the three members of the Council, due to death or resignation or removal from his duties, the term of office of the new member is for the remainder of the term of office of the member he replaces.

When the term of office of any of the members of the Council expires, the procedure for renewing the term of office of the member or appointing a new member is completed before the term of office of the existing member expires.

Also, in the event of a vacancy in the Council due to the death or removal of a member, this vacancy shall be filled, at the latest, within one month.

It is emphasised that Council members may be appointed for a maximum of two consecutive terms.

The responsibilities of the Council

It is also worth mentioning that, according to the legislation, the mission of the Fiscal Council is public, timely and effective intervention with the aim of avoiding fiscal derailment and ensuring the sustainability and resilience of public finances.

To this end, an important parametre is the promotion of best fiscal management practices with the aim of macroeconomic stability, sustainability and development for the benefit of citizens.

The macro-precautionary approach implies, not only the short-term horizon of the annual budget of the Republic, but also the long-term planning to ensure the robustness of Cyprus and its citizens over time.

It should be noted that the Fiscal Council submits, as soon as possible, after the end of each fiscal year, an annual report on its activities during the year to the House of Representatives and at the same time publishes it in the Official Gazette of the Republic.

• The who is who of Marios Clerides

Dr. Marios Clerides studied Economics at the London School of Economics (BSc, MSc, PhD). In 1982 he was hired at Hellenic Bank as Head of the Planning & Financial Studies department. Subsequently, he additionally took over Card & Retail Banking Services, Investment Banking and Treasury Services and International Banking.

In 2001 he became Chairman of the Cyprus Securities and Exchange Commission with a five-year contract, while after the end of his term in 2006 he returned to Hellenic Bank to take over the Risk Management department and the position of Deputy General Manager.

In 2013, he assumed the position of General Manager of the Cooperative Bank, from which he resigned in September 2015.

Clerides until recently was also a Specialist Scientist at the University of Cyprus teaching M.Sc. and MBA students on ‘The Cypriot Banking System, Money and Capital Markets.’

(Source: InBusinessNews)