President Nikos Christodoulides says the government is considering further economic support measures as Cyprus continues to face inflationary and energy-related pressures.
Speaking to reporters ahead of a Forbes conference in Limassol, Christodoulides said support measures already announced and being implemented exceed €1 billion, while additional options remain under examination.
Three-pronged approach
According to the president, government policy is based on three main pillars:
- Immediate relief measures
- Increasing disposable income
- Long-term structural solutions
As examples of immediate relief, he pointed to measures such as the zero VAT rate on a number of products.
Regarding disposable income, Christodoulides highlighted:
- The tax reform package.
- The agreement on the Cost-of-Living Allowance (CoLA/ATA).
- Two increases in the minimum wage.
- The ongoing pension reform.
Focus on long-term solutions
The third pillar concerns structural measures aimed at delivering permanent solutions, particularly in the energy sector.
The president specifically referred to developments at Vasiliko and efforts related to the introduction of natural gas, which he said are intended to address electricity costs over the longer term.
"We are moving on the basis of a plan in three directions: immediate relief, increased disposable income and institutional measures that will provide permanent solutions."
EU discussions continue
Christodoulides said Cyprus has already raised concerns about energy prices at meetings of EU finance ministers and that the issue will continue to be discussed at this week's European Council summit in Brussels.
He noted that some additional measures being considered would require approval from the European Commission, while others could be implemented nationally.
"We are examining many other measures beyond those already announced. Some require the Commission's green light. Others do not."
He added that the government is monitoring developments daily and stands ready to respond as needed.
Strong economy provides room for support
The president argued that Cyprus is able to introduce support measures because of its fiscal position, citing:
- One of the strongest growth rates in Europe.
- Unemployment levels comparable to those seen in 2008.
- Investment-grade ratings from major international agencies.
- A third consecutive surplus budget.
He said responsible fiscal management allows the government to invest in areas such as education, healthcare, housing and the welfare state while also supporting households during periods of high living costs.
"The real benefits of economic growth must be returned to society."
