Economic decisions to be based on fiscal stability and reforms, says President

Any decision concerning the country's economy will be taken on three-pillar basis, fiscal stability and responsibility, a stable and healthy financial sector and continuous and bold reforms, President of the Republic Nikos Christodoulides has said.

He was speaking during a meeting with the Board of Directors of the Cyprus Chamber of Commerce and Industry in Nicosia on 13 February.

In his introductory speech, the President of the Republic said that the Government fully recognises the leading role played by the business community in the development of the economy and in the implementation of the long-term strategy "Vision 2035", while he noted that healthy business activity will create new quality jobs, will lead to growth and, by extension, to social welfare, "since without a strong economy and without growth we cannot implement social policy, which is one of the most important aspects of the economy".

The Government intends to institutionalise public-private sector cooperation on the basis of a model that has been tested with foreign entrepreneurs, President Christodoulides continued, adding that in June 2023 a meeting was held at the Presidential Palace with the 25-30 largest foreign investors in the country, in the presence of six ministers, where they were asked to report on the problems they face through their activities in Cyprus.

He added that seven issues emerged from the meeting and that last week, in cooperation with Invest Cyprus, a new meeting was held at the Presidential Palace where the Government's actions on these issues were presented to them.

He also said that the Government wants to do the same with Cypriot businessmen, proposing the establishment of a meeting at the Presidential Palace every six months so that problems are heard, and the government can inform about the solutions it has promoted to achieve common goals.

According to the President of the Republic, the effort to strengthen the business community is based on two pillars, on the one hand the creation of a stable fiscal environment and on the other hand to provide the business community with the necessary tools to face the challenges of the global market.

"I want to reiterate the three-pillar approach we have taken during our administration. Any decision regarding the country's economy will be made on a basis of fiscal stability and responsibility, a stable and sound financial sector and continued and bold reforms. As far as the Cypriot economy is concerned, we are optimistic, considering the successive upgrades of our country and the fact that we are now received investment grade by all the agencies. Of course we are not complacent, but it is a clear indication of the positive image that we have all together managed to create for the stability of the country, but also a vote of confidence in the policies we are pursuing", he added.

One of the most decisive ingredients for creating a stable environment that will bring quality investments and many other positive developments is the creation of conditions of full transparency with regard to the country's economy, the President continued, adding that in this direction the Government is taking specific actions, such as a campaign for the rebranding of Cyprus, for which for the first time there is a provision in the state's budget.

Regarding the high cost of energy for businesses, the President of the Republic said that the immediate way out is the use of renewable energy sources, adding that in this context the Council of Ministers recently approved an ambitious plan of grants to encourage the use of renewable energy sources and energy saving in homes for 2024 and 2025, as well as the plan of grants for energy upgrading and enhancing the competitiveness of large enterprises.

He added that at the same time, the Government is moving forward with facilitating and simplifying the licensing of renewable energy projects through an integrated digital platform, while soon, two projects worth about 80 million will be announced on energy storage, in order to enhance the contribution of renewable energy in the power generation mix.

According to the President of the Republic, the Government is also drawing up the national strategy for hydrogen, while supporting the energy upgrade of businesses through special financial instruments, actions which, he said, not only serve the green objectives, but will enhance the competitiveness of businesses in the long term.

At the same time, regarding the conventional fuel sector, he said that the Government aims to complete the necessary infrastructure to lift Cyprus' energy isolation, with a view to bringing in natural gas for electricity generation and electrical interconnection with neighbouring countries.

He added that ENI's CEO is expected in Cyprus in March following the recent results within the Exclusive Economic Zone in order to present the plan for the immediate development of the field.

Finally, President Christodoulides said on personnel shortages that consultations have been initiated with Egypt for the provision of manpower, as well as with India for the provision of qualified personnel, always based on the needs of the Cypriot economy.

"This discussion must continue. I firmly believe that your success at the end of the day will be our success, and our success will help you achieve your own goals," he concluded.

(Source: CNA)