Keravnos: Targeting joint investments by Cypriot and foreign investors to enrich the economic model

Cyprus is seeking to enrich its economic model, with the big wager remaining the preservation of positive indicators for economy towards continuing targeted social policy.

Planning and creating conditions that facilitate joint investments by Cypriots and foreign investors, in investments that create infrastructure, new production units and salaried jobs are among the government’s next steps.

The above was emphasised by the Minister of Finance, Makis Keravnos, while welcoming the 3rd AKEL Economic Forum entitled 'A Strong Economy for All: Sustainable-Socially Oriented'.

Representing the President of the Republic, Nikos Christodoulides, Keravnos said that Cyprus, as a full member state of the European Union, has no other choice but to implement a prudent, careful, preventive and balanced economic policy, to ensure financial stability and natural survival. in a homeland" he said, "which for 50 years has been divided by military occupation and permanent threat."

In the context of his speech, the Minister also emphasised that economic policies must have a strong social character, especially in small countries, with open economies such as Cyprus where they can be directly affected by negative developments.

He reiterated the government's position that the economic policy designed and implemented by the government is a people-centered policy that cares for the vulnerable groups, for the middle class, but also cares for the coming generations "that we do not have the right to burden with additional debts and additional memoranda."

Noting statistics that reflect today's situation internationally, he said: “The average poverty rate in the euro area is 21.4% and even higher in the big rich countries like Germany, France, Italy and Spain. Cyprus has 13.9% of the population at risk of poverty, according to data from 2023, the third lowest indicator in the European Union," he added, documenting his position.

Keravnos acknowledged that "the cost of energy in Cyprus is 29.9 cents/Khw, and it is really high" but also that in Germany the price of energy is 39.9 cents per kilowatt hour, in France 30.5 cents, in Italy 32 .14 ​​and in Belgium 38.8 cents per kilowatt hour.

"The government recognises the problems that plague our society and is not sitting bacl because statistical comparisons place us perhaps more positively than others," he said and added that, for this reason, "despite the negative heavy legacies we found in front of us, from in the 1st month of the Administration we have been implementing very important social policy measures, which would be particularly difficult to meet in any other European country at this time".

Proceeding to yet another admission by the State, Keravnos said: "I accept that the government's measures may not have provided permanent solutions, but permanent solutions are not easy between the European obligations and rules that we have an obligation to observe and between rapidly evolving geopolitical developments and war conflicts, but neither should we shift the burden to future generations."

He emphasised that until today a huge effort has been made to provide relief to our underprivileged fellow citizens through sensitive economic policies and gave assurances that the balanced and human-centered, but at the same time fiscally prudent economic policy will continue, listening to the demands of society and the opinions and suggestions of the country’s political scene and social partners, in an effort to find a more permanent solution.

Makis Keravnos noted, "There is no justification for complacency. The wager is to maintain the good indicators of our economy in order to be able to continue the targeted social policy."

Equally crucial is the enrichment of the economic model, a fact that he went on to analyse.

"The enrichment of our economic model must be governed by a balanced economic development policy, growth must also come from new productive sectors but we must also return our attention to traditional sectors, such as the primary sector, agriculture and livestock, with a focus on the creation of synergies, modern production methods and mainly of an export nature."

Looking to the future, in his speech Keravnos concluded as follows, "We will focus our attention in the next period, on planning and creating conditions that facilitate joint investments by Cypriot and foreign investors, on investments that create infrastructure, new production units and salaried jobs, encouraging export."

At the same time, he concluded, "the traditional sectors of the economy with the greatest contribution to the GDP should be continued to be supported such as Tourism, Shipping, Retail Trade and Professional Services to further ensure the improvement of their competitiveness."

(Source: InBusinessNews)