The Government is able to adopt measures to address the effects of the regional crisis because of the country’s solid economic foundations and responsible fiscal policy, Government Spokesperson Konstantinos Letymbiotis said on Tuesday.
Speaking to journalists after the doxology ceremony at the Cathedral of St Theodore in Paphos marking the anniversary of 1 April, Letymbiotis was asked about government measures aimed at addressing the energy crisis as part of the wider regional developments.
He said the government continues to assess developments on a daily basis as the situation evolves.
“We are in the middle of a regional crisis whose duration, depth and potential impact on energy prices or the cost of living are still unknown,” he said.
Measures already in place
Letymbiotis noted that the government had taken measures from an early stage to mitigate potential impacts.
He recalled that measures amounting to €100 million had already been in place before the crisis, while inflation in Cyprus had been almost zero.
According to the spokesperson, an additional €100 million in measures was approved by the Council of Ministers last week. These include reductions in excise duties on motor fuels, support for sectors affected by the situation and the inclusion of additional products in the zero VAT rate.
Fiscal capacity for further action
Letymbiotis added that various scenarios are continuously being prepared regarding the possible duration of the crisis.
“This is precisely where we must understand the importance and value of having solid economic foundations,” he said.
He concluded that the government’s ability to adopt these measures, and to introduce additional ones if necessary, stems from “the solid economic foundations, the fiscal capacity and fiscal space of the state, resulting from the responsible economic policy being pursued.”