Michalis Hadjipantela: The proposal for the Common Consolidated Corporate Tax Base is a red line for me

The proposal for the Common Consolidated Corporate Tax Base (CCCTB) is a red line for Disy and European People's Party (EPP) MEP Michalis Hadjipantela.

The CCCTB is a proposal for a common tax scheme for the European Union developed by the European Commission and first proposed in March 2011 that provides a single set of rules for how EU corporations calculate EU taxes, and provide the ability to consolidate EU taxes.

As Hadjipantela explains, the CCCTB aims to unify the tax rules for companies in the EU, which could potentially have several negative effects for Cyprus, reducing Foreign Direct Investments (FDI).

In an interview with InBusinessNews, Hadjipantela refers to the priorities he has set as an MEP regarding economy and business issues, noting that one of his main goals is to promote measures to strengthen entrepreneurship and innovation in Cyprus, ensuring access to financing for small and medium-sized enterprises including startups.

At the same time, high on his aspirations - among others - is the reduction of bureaucratic obstacles and the simplification of procedures for businesses, making Cyprus an even more attractive destination for investments, something that will see him making use of, as he points out, his experience as a professional auditor.

All of the above, suggests Michalis Hadjipantela, should go hand in hand with the transition to a greener economy, which - as he emphasises - is a great opportunity for the Cyprus economy, creating new jobs and strengthening innovation in sectors such as renewable energy sources and the circular economy.

How do you intend to contribute to the effort to strengthen the economy of Cyprus with your presence in the European Parliament?

As a new MEP, with a liberal economic background, I intend to contribute to the strengthening of the Cyprus economy by making full use of my participation in the key committees I participate in, such as the Committee on Economic and Monetary Affairs (ECON), the Subcommittee on Tax Matters (FISC), the Industry, Research and Energy Committee (ITRE), the Committee on Budgets (BUDG), and the Committee on the Environment, Public Health and Food Safety (ENVI).

I will work to promote policies that enhance financial stability and economic growth, while one of my main goals is to promote measures to strengthen entrepreneurship and innovation in Cyprus, ensuring access to finance for small and medium-sized enterprises and startups.

I will also support the reduction of bureaucratic obstacles and the simplification of procedures for businesses, making Cyprus an even more attractive destination for investment, leveraging my experience as a professional auditor.

Through my participation in the Subcommittee on Tax Matters, I wish to promote measures to combat tax fraud and fiscal transparency.

In addition, I want to strengthen the cooperation between the university sector and industry in Cyprus, promoting research and development.

I will seek to increase European funds for projects related to innovation and technology, as well as the adoption of new energy solutions that can reduce energy costs and strengthen the energy security of our country.

Harnessing the energy reserves of our exclusive economic zone for the European energy supply chain is a priority for my parliamentary term.

Furthermore, I wish to claim funding and programmes aimed at the economic development of Cyprus, with a fair distribution of European resources and an emphasis on the support of regional and local infrastructure projects. These measures will be able to create new jobs and strengthen the competitiveness of our economy.

All of the above should go hand in hand with the transition to a greener economy, which is a great opportunity for the Cyprus economy, creating new jobs and boosting innovation in areas such as renewable energy and the circular economy.

The private sector is a key factor in the economy. What specific actions do you intend to take to boost businesses operating in the country?

I have worked in the private sector so I understand its importance to our economy. First of all, I will work to improve the access of Cypriot companies to European funds and financing programmes, promoting measures that will make it easier for small and medium enterprises to benefit from European investment funds and programmes, such as COSME and Horizon Europe.

Increased funding will allow businesses to innovate and expand.

At the same time, I wish to promote the simplification of administrative procedures and the reduction of bureaucracy, creating a friendlier business environment.

In addition, I will focus on the promotion of innovation and technology, with the aim of improving the framework for the development of startups and cooperation between universities and businesses. Investing in research and development can make Cyprus a centre of innovation in the region.

Regarding trade relations with other markets, we must support the export activity of our companies, facilitating their access to new markets and the promotion of Cypriot products and services.

Finally, it is a priority for me to improve digital infrastructure and the digital economy, enhancing the efficiency and competitiveness of businesses and our economy.

What is an economic policy that you consider a "red line" that you would not support or vote for?

A red line is the proposal for the Common Consolidated Corporate Tax Base (CCCTB). The CCCTB aims to unify tax rules for companies in the EU, which could potentially have several negative effects for Cyprus, reducing Foreign Direct Investment (FDI).

This would particularly affect the financial services sector, as it would undermine the competitive advantages of the Cypriot economy, leading to business relocations to other countries.

Moreover, it would worsen the fiscal position of Cyprus, since it could lead to lower tax revenues for the government.

The CCCTB, although aimed at creating a fairer tax system in the EU, may have negative consequences for small, open economies such as Cyprus that depend on favorable tax policies to attract investment.

I firmly believe in discussion and cooperation with our partners to reach the best possible outcome for the common good of the member states of the European Union.

With this in mind, and with the necessary amendments and compromises from all sides, I believe that every possible economic, and political, initiative of the European Union can bring positive results for all its members.

For this reason, I will be vigilant so that I can respond to any possible policy that may affect Cyprus, either indirectly or directly.

My purpose is to find solutions that will serve both the Cypriot interest and our common European vision.

What do you consider to be Cyprus’ biggest problem that prevents its further development and the rise of its GDP?

According to Eurostat data, Cyprus invests less than 1% of its GDP in research and development, well below the European Union average of around 2%.

Despite various initiatives to support startups, such as EU funding programmes, Cyprus has not yet created a strong innovation ecosystem.

I believe that this is the biggest problem that Cyprus faces and that prevents its further development.

Private and public investment in universities, research centres and partnerships with industry and the private sector can create a stronger ecosystem of innovation, research and technological development.

At the same time, there is a need to strengthen education and training in the fields of technology and innovation and to promote STEM (Science, Technology, Engineering, Mathematics) programmes in schools, universities and lifelong learning programmes for professionals of all ages and fields.

What, in your opinion, is the sector of the economy that is underperforming and you think should be strengthened further?

Following on from my answer to the previous question, in my opinion, the sector of the Cypriot economy that is being degraded and needs to be further strengthened is the research, development and innovation sector.

Despite the efforts of recent years, this sector still lags behind compared to other European countries.

At the same time, the sector of the circular economy and the bioeconomy can be strengthened and create new jobs, investment opportunities as well as revenues for the private sector and the state.

For example, in countries such as Spain, Germany and the Netherlands, a huge market has been created for the processing and sale of products and services derived from waste and various other materials and stocks created by crops and livestock services.

These products, rather than simply being discarded without economic benefit, are processed and used for other services and products, creating a new market from raw materials that previously had no value.

Partnerships that will help our country

Apart from the political group to which you belong, with which other political formations in the European Parliament will you seek cooperation?

I will cooperate with all those who can support and help Cyprus, either in economic matters, or in our national problem of invasion and occupation.

As a democrat, I am proud to be part of the family of the European People's Party, the largest and strongest formation in the European Parliament, the European Commission and the European Council.

I do not wish to cooperate with extreme elements that undermine European democracy and that do not respect the common principles and values ​​of European states.

However, where and where I can achieve partnerships that will help our country, I will not hesitate to do so. I proved through my term as a Minister in the government of Nicos Anastasiades that I can achieve the necessary collaborations and balances for the interest of both my country and Europe.

What is one piece of advice you got from re-elected office to make your voice better heard more in the European Parliament?

I have received a lot of advice, both from politicians in the European Parliament and politicians from other places. I choose to focus on advice for more active involvement in other countries' concerns and problems, but also advice on reliability and integrity.

To achieve support in our own problems, we must support colleagues in theirs. This, moreover, I have also done as a Minister, achieving great victories for Cyprus even against large states.

By supporting our partners on issues that are not exclusive to Cyprus, it allows us to achieve their own support on our own problems, such as our national problem of invasion and occupation.

On this basis, maintaining credibility and honest communication with citizens and colleagues are fundamental elements for a successful and useful political career in the European Parliament.

I will be honest with citizens, even when the truth is difficult. This is how I have behaved until now in any case, building a relationship through transparency and honesty.

I also want to listen to the people I serve, understand their concerns and needs, so that I can make decisions that will have a meaningful and positive impact on the lives of our citizens.

(Source: InBusinessNews)