Cyprus proposes suspending or cancelling certain taxations, President says ahead of EUCO

President Nikos Christodoulides has revealed that Cyprus has put forward the idea that some EU member states should undertake the initiative for the Union to examine the possibility of suspending the implementation of taxations, particularly related to the green transition or if needed cancel them, so that they do not affect EU competitiveness negatively.

In a doorstep statement on 26 June, Christodoulides who participated in the European Council meeting in Brussels, after attending the European People’s Party Summit, also welcomed the US intervention, which as he noted, led to the truce between Israel and Iran, adding that what he will say before the other EU member states is that the aim during the Cyprus EU Presidency is “to bring the region closer to the EU.”

Responding to a remark by a journalist that despite the fact that there has been a ceasefire between Israel and Iran the EU seemed to be unable to act promptly, the President said that this is one of the issues that will be discussed on Thursday by the European Council.

“This is an issue which we discussed in the EPP,” he noted. He welcomed the US intervention that led, as he noted to the truce, “to a positive outcome, taking into consideration the developments in general.”

“And this is just another indication about the need, if the EU wants to have a geopolitical role, to play a leading role in such developments,” he added.

He noted that “there have also been some positive developments on our initiative and the Egyptian President has been invited to come to Brussels, to meet with the heads of the institutions. The same applies for Lebanon and I will be happy to welcome during the next days the President of Lebanon to Cyprus,” he added.

Moreover, he welcomed the fact that the President of the European Parliament visited the UAE for the first time adding that  "we must showcase this role that we can play in the region in practice.”

“And in this framework, I informed about the visit of the Prime Minister of India to Cyprus,” he added, noting that that latter will be invited during an informal summit that will take place in Cyprus, during the Cyprus EU Presidency.

The President also said that they would examine during the Council the progress achieved so far as regards “the very important decisions we have taken in the field of defence and security.”

He underlined that “the Republic of Cyprus will make the most of opportunities, financing and other, provided by the EU programme on defence and security."

"The main issue is to help the European industry and we have a Cypriot industry which is very promising and we will make use of it. We as the Republic of Cyprus, as the National Guard, will make use of the Cypriot defence products and we will help to reinforce them even more as regards sales made abroad,” he noted.

As regards migration, the President said that currently the basic problem has to do with Libya, the flows towards Greece and Italy. He noted that “we stand by these two countries, we know very well what this means.”

Recalling that before the Summit he would attend a meeting organised by Italy on migration he noted that he would present a new plan introduced by the Republic of Cyprus that came into effect as of June 2 and has yielded important results.

He said that this plan provides that when asylum applicants or political refugees who accept to recall their international protection status or to withdraw their application for asylum the father or mother will be allowed to stay and work legally to Cyprus for a certain period, as long as the other members of the family will return back to Syria after receiving financial support from the Republic of Cyprus as well.

President Christodoulides said that the third issue which he considers important is competitiveness “how to reduce bureaucracy to change some regulations.”

He noted that in this framework an issue which he raised before the EPP and he will raise before the European Council as well, after coordinating on it with the leaders of other member states, is the need to look into certain taxations related specifically to green transition issues, some decisions that they took in the past, when things were different, and if implemented today will affect even more that EU competitiveness.”

As he noted "we must reconsider these decisions, maybe adjourn their implementation for a later stage. Right now the implementation of decisions taken while things were different will affect the EU competitiveness and we do not want it to be hit even more," he underlined.

The President explained that there are taxations scheduled to be implemented as of January 1, 2027 and noted that during his meetings in Baltic countries as well as other countries, in the framework of the preparations for the Cyprus EU Presidency, he put forward the idea of undertaking an initiative with states which consider that these new taxations would negatively affect EU competitiveness so that their implementation is adjourned for a later stage or even, if needed, to cancel them.

He said that he raised this issue and that there is a double-digit number of member states which endorse this approach. I raised this matter with the President of the Commission and we will discuss it even more today under the issue of competitiveness, he noted.

Asked if they will discuss at the European Council the issue related to Article 2 of the EU-Israel Association Agreement and if he is satisfied about the relevant reference in the conclusions, he noted that this is an issue that will be discussed.

He recalled that excellent relations between the Republic of Cyprus and Israel, and noted that the Republic of Cyprus has  put forward and raised before the EPP the issue of the humanitarian crisis in Gaza and is in consultations with Israel and other neighbouring states about it.

Christodoulides stressed that there is absolutely no justification for the deaths of children because they have no access to basic goods as water, milk and food, and underlined that this issue must be solved, there is no justification, and these two could be interconnected.

Asked if pressure could be exerted by the EU Summit he replied that “unfortunately at the EU level no”, adding that there are different positions and approaches.

He recalled Cyprus’ role as regards the humanitarian aid and noted Israel’s “decisive decision to lift that maritime embargo after 17 years”. Moreover he said that “we are working at the bilateral level with other partners, the UAE, USA, so that the unobstructed dispatch of humanitarian aid to Gaza resumes."

Responding to another question, he referred to the fact that the Cyprus issue is included in the EPP summit statement and welcomed this development.

He noted the support by the EPP on this issue, and recalled that the Party had supported the appointment of Johannes Hahn as the Commission’s Special Representative on the Cyprus issue.

He also said that another matter which constitutes a national goal is the full accession of the Republic of Cyprus to Schengen. “This is something for which we need the EPP support,” he said, adding that this issue is also included in the EPP statement.

(Source: CNA)