Finance Minister Makis Keravnos on Thursday said the government is still reviewing measures that can be taken to address inflation and the rising cost of living in Cyprus.
He was talking to state radio following a furor the day before when trade unions and civil organisations expressed their strong dissatisfaction with the seemingly ineffective measures taken thus far.
Trade unions Peo, Sek, Deok and smaller ones, along with the Cyprus Consumers Association, issued an announcement demanding measures over fuel prices, electricity, basic consumer goods and interest rates.
On Thursday, Keravnos reiterated the government’s will to take additional measures – if necessary – “and always within the limits of our financial capabilities. Because in no way should we jeopardize our economy.”
As for the Energy Minister he said the European Commission prohibits horizontal subsidies on fuel. And that a targeted subsidy only is allowed by the Commission but it is difficult in practice and is done through the use of vouchers to beneficiaries.
He also said that the only way to reduce the price of fuel through state intervention is through a reduction in excise duty which is a matter for EU member states to decide.
At the same time, trade unions and consumers’ representatives will hold another meeting on September 27 when they will propose measures to achieve greater transparency in the market. As well as to protect the purchasing power of households.