Τhe authorities is worried concerning the dangers to the financial system, which can come up from value will increase, mentioned Cyprus’ Finance Minister Constantinos Petrides, noting, nonetheless, that inflation rise is presently thought of as short-term.
The Minister identified the necessity for prudent insurance policies, as a way to “have the chance to intervene the place we are able to and the place we should always”, noting nonetheless that there’re are not any simple options.
In statements after receiving the annual report of Cyprus Financial system and Competitiveness Council and requested if he was involved concerning the results of value will increase on the financial system, he mentioned that “after all we’re involved” highlighting the results of inflation. Nevertheless, he famous that inflation has not but reached previous ranges and was nonetheless thought of as short-term.
The Minister additionally mentioned that there is likely to be different penalties that aren’t mentioned in the mean time, equivalent to the necessity to improve rates of interest to curb inflation and the affect that it will have in the marketplace or on public debt, whereas Cyprus, he added, nonetheless has a excessive public debt.
“With the intention to stop these dangers, we have to have a coverage that results in the discount of public debt as a result of we don’t know the way issues might be tomorrow,” he mentioned, including that the financial system is evolving, altering daily and “we should always not take something without any consideration”.
Requested on the European Fee’s solutions to assist governments tackle document power costs, the Cypriot Minister mentioned that Cyprus has already backed electrical energy by means of nationwide electrical energy firm (EAC) for 4 months beginning subsequent November and already did that throughout the COVID disaster final yr.
The Minister additionally referred to inexperienced progress and inexperienced taxation promoted by the EU, noting that it will result in improve in gas costs with all that entails.
“The inexperienced transition isn’t simple, it’s going to even have value for the shoppers, and that’s the reason European planning should be as cautious as doable,” he mentioned.
Requested concerning the anticipated improve in meals costs because of animal feed value, Petrides mentioned that after the pandemic there’ s a special interval of financial progress. Inflation, as he mentioned and the present tendencies is one thing that worries not solely in Cyprus but in addition internationally.
He added that the difficulty was being mentioned at EU stage and Cyprus was actively collaborating. He added that within the brief time period, they are going to have a look at the difficulty of breeders help and market situations with the Ministry of Agriculture, nonetheless, as he mentioned, inflation is a worldwide development and one can not management it on a nationwide stage.
Receiving the annual report of Cyprus Financial system and Competitiveness Council the Minister mentioned that Cyprus has future so long as there’s strategic planning, which presently exists.
He added that in cooperation with Cyprus Financial system and Competitiveness Council the finances was fashioned primarily based on a imaginative and prescient and was associated to EU’s Restoration and Resilience Facility