Finance Minister, Makis Keravnos asserted that the government is actively implementing measures to combat rising prices and affirmed readiness to introduce additional measures when necessary.
According to the Cyprus News Agency (CNA), Keravnos also underscored Cyprus’s commitment to commence repayment of a 6.5 billion euro loan by 2030. Furthermore, he stressed that, by the close of 2026, Cyprus must meet the financial criteria related to public debt and fiscal deficit indicators.
Responding to questions regarding the stance of trade unions and the mounting pressure to address rising prices, Keravnos maintained that such challenges should be addressed through rationality rather than pressure. He stressed the importance of maintaining a proper fiscal balance in the economy, asserting, “Any suggestion from anyone, including the trade union movement, is welcome, and we are ready to study it.”
Moreover, he highlighted that the issue of rising prices and inflation is not unique to Cyprus but is a global concern, particularly in Europe. He attributed some of these challenges to the war in Ukraine, stating, “In the heart of Europe, there is a terrible war with many negative economic and societal consequences.”
Regarding the government’s approach, Minister Keravnos stated, “In the context of this uncertainty and the necessity to maintain a surplus in fiscal balance, the government is consistently implementing measures.” He noted that several measures are already in effect, and the government is closely monitoring developments, poised to take additional actions when required.
Minister Keravnos also addressed the preference of international institutions for targeted measures over horizontal ones, as advocated by trade unions in their call to reduce fuel prices. He stated, “Measures should primarily target the most vulnerable segments of the population and those in genuine need.” He further mentioned that the government is evaluating these matters within the framework of EU oversight bodies and the European Commission, reiterating Cyprus’s obligation to initiate the 6.5 billion euro loan repayment by 2030 and meet specific financial criteria by the end of 2026.
In conclusion, he stressed the importance of thorough analysis and the implementation of a balanced economic and social policy.