House President: Cyprus' economy has proven exceptionally resilient to external shocks

Throughout successive crises, Cyprus' economy has proven exceptionally resilient to external shocks and has performed well, with the Vice President of the European Central Bank saying the country was an example to follow, House President Annita Demetriou said addressing the 14th Limassol Economic Forum.

“The other day the Vice-President of European Central Bank said that the progress achieved in Cyprus is remarkable and worth mentioning as an example to follow,” Demetriou said. “The Non-Performing Loans ratio was drastically reduced and Cyprus’ credit rating has been restored to investment-grade level according to all major credit rating agencies.”

She said the country must now exert every possible effort to continue on the same positive track because nothing is given or stable. “There is no room for backsliding. The Cyprus Recovery and Resilience Plan is our key tool for realising our country’s transformation in all fields, including our goals to become a green and digital island, thus we must harness its full potential. And of course we need to catch up deadlines and follow precise the plan.”

Elsewhere, Demetriou said that at a time when Europe is faced with a multitude of geopolitical challenges that demand resilience and visionary leadership, Cyprus is also at a crossroads, confronted with disproportionate migration flows, climate crisis, energy transition, digital transformation and interest rate and inflation hikes, which shrink household disposable income.

“All of these challenges necessitate immediate, collective, and strategic responses,” she stressed.

Referring to the Russian invasion of Ukraine, Demetriou said Cyprus’ position was clear. “We must preserve the unity of the EU,” she said. “We must continue our support for the independence and territorial integrity of all states, without exception. As Cypriots, we know first-hand what war and being refugees means. We are therefore convinced that Europe should act as a leader with intensive efforts on peace-building. This is the case for Ukraine, but this is also the case for the Cyprus problem and every other country of which the territorial integrity is being threatened.”

The country’s position on the European economy and single market is also clear, she added. “In an increasing globalised economic environment, the European Union should do its best to remove all barriers and reduce red tape to the minimum, thus enhancing and strengthening business opportunities. This would allow the single market to thrive and reach its full potential.”

Given the effects of globalisation on the economy and increased competition from other jurisdictions outside the European Union, all unnecessary and unneeded regulatory burden must be eliminated to reduce costs, speed up processes and boost the competitiveness of the single market, Demetriou said. “Our vision should be to make the European Union a leading attractive investment destination and a global leader in innovation, digital and clean technologies.”

At the same time, she said, “we must make sure that the benefits of our policies are also enjoyed by the European citizens by ensuring social cohesion and inclusion. Special policies must be applied so that small and medium size companies can fairly enter the competition and enjoy equal opportunities as the large corporations.”

The House President also referred to what she described “the most profound and complex challenges facing Europe”; migration and security. “As Europeans, we have a moral obligation to address this issue with compassion and humanity,” she said. “Our continent has a rich history of providing refuge to those who are in real need, and this legacy of solidarity must guide our actions in the face of this crisis. However, we must also understand the legitimate concerns of our citizens regarding the management of migration - especially the illegal one. The challenges are manifold and to this end we must strike a balance between our humanitarian responsibilities and the need to protect our societies.”

Demetriou called for a multifaceted approach. “First, the EU must strengthen its external borders to save lives and prevent further human tragedies by setting up an improved border infrastructure and a new European rescue initiative in the Mediterranean. At the same time, the EU must respond quickly to instrumentalisation through a comprehensive approach that takes into account operational, legal, financial and diplomatic measures. This includes close cooperation with countries of origin and transit to prevent departures and visa policies aimed at destabilising the EU. In this regard, the EU must also find a sustainable and long-lasting solution to the situation in Cyprus, where Turkey abuses the green line to facilitate the movement of third-country nationals into the EU.”

The House President also referred to the climate crisis, saying it is a crisis that affects everyone, “regardless of our backgrounds or beliefs”, and one that demands immediate attention and collective action.

“The European Green Deal represents our shared commitment to tackling climate change while fostering economic growth and sustainability,” Demetriou said. “To combat climate change effectively, cooperation is not an option, it's an imperative. We must join forces to reduce emissions, transition to renewable energy sources, and protect our planet for future generations. The EU's leadership is commendable, and Cyprus is determined to contribute to this transformative agenda, which is an investment in the future, an opportunity to come together as a global community, to innovate, and to build a better future. A commitment to future generations, and a testament to our responsibility as global citizens to maintain a world that is habitable, healthy, and thriving.”

The biggest current affairs conference in Cyprus

The Limassol Economic Forum is the biggest current affairs conference in Cyprus where business leaders, government officials, diplomats and academics discuss global issues on the economy, international relations, energy, investing, technology and entrepreneurship.

It is addressed to business leaders and decision makers such Board Members, CEOs, Managing Directors, and other senior management executives from all the major corporations in Cyprus and abroad. The Forum also as a rule welcomes politicians, diplomats, other government officials, but also entrepreneurs, academics, and other international experts on political and economic issues.

The 14th Limassol Economic Forum is taking place at City of Dreams Mediterranean, Limassol. It has been organised by IMH and INBusiness Magazine, with the support of EKO, the Cyprus Shipping Chamber, and Limassol Chamber of Commerce & Industry. CBN, GOLD Magazine, and ALPHA Cyprus are communication sponsors.