Government on EuroAsia Interconnector: Viability study first, decisions after

08:45 - 31 August 2023

Economy

The government is waiting for the results of an evaluation study into the economic viability and geopolitical significance of the EuroAsia Interconnector project – expected to be assigned sometime next week – before it decides whether or not to participate, Government Spokesperson Konstantinos Letymbiotis has said.

Responding to reporters’ questions after a Council of Ministers meeting, Letymbiotis said the decision of the Republic of Cyprus regarding its involvement in the project would be determined by the evaluation study. He noted that the assignment of this study was expected to be concluded in the coming week focusing on both the economic viability of the project and its geopolitical value.

In response to questions about the economy, the spokesman said the government's aim was to implement permanent, not temporary, measures to alleviate consumer burdens, while he pointed out that "inflation is currently at low levels compared to the same period last year".

Asked whether the government was considering any measures to counter rising fuel prices, electricity costs and interest rates, Letymbiotis said it had already taken additional steps to support households, such as applying a zero VAT rate to certain products and reducing it for others. He also mentioned that the Ministry of Finance was examining the possibility of expanding the list of products under this scheme, based on the state's economic capabilities.

"The government's goal is to promote measures that will be lasting, such as increasing the penetration of renewable energy sources in households, so as not to depend on a temporary subsidy policy," he said.

Government on EuroAsia Interconnector: Viability study first, decisions after

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