Any decision concerning the country’s economy will be based on the triptych of “fiscal stability and responsibility, stable and healthy financial sector, and continuous and bold reforms,” stated President of the Republic Nikos Christodoulides during yesterday’s meeting with the Administrative Council of the Cyprus Chamber of Commerce and Industry (CCCI) in Nicosia.
In his opening speech, the President of the Republic acknowledged the pivotal role played by the business community in the country’s economic development, as well as in the implementation of the long-term strategy “Vision 2035.”
He noted that a healthy business activity will create new quality job positions, leading to growth and, consequently, to social prosperity, stating, “without a strong economy and growth, we cannot implement the social policy that is one of the seven pillars of our governance.”
The Government intends to institutionalize the collaboration between the public and private sectors based on a model tested with foreign entrepreneurs, President Christodoulides continued, adding that in June 2023, a meeting was held at the Presidential Palace with the 25-30 largest foreign investors in the country, attended by six Ministers, where they were asked to report the issues they face through their activities in Cyprus.
He further mentioned that seven issues arose from the meeting, and last week, in collaboration with Invest Cyprus, a new meeting was held at the Presidential Palace where the Government presented its actions on these matters.
He also stated that the Government aims to do the same with Cypriot entrepreneurs, proposing institutionalizing meetings at the Presidential Palace every six months to address problems, with the Government informing about the solutions it proposed to achieve common goals.
According to the President of the Republic, the effort to strengthen the business community is based on two axes: creating a stable fiscal environment and providing the necessary tools to tackle the challenges of the global market.
“I want to reiterate the triptych of our approach during our governance. Any decision concerning the country’s economy will be based on the triptych of fiscal stability and responsibility, stable and healthy financial sector, and continuous and bold reforms.”
Regarding the Cypriot economy, the President said, “We are optimistic, considering the successive upgrades of our country and the fact that we are now in an investment grade with all rating agencies.”
He emphasized that, “we do not rest, but it is a clear indication of the positive image that we all together managed to create for the stability of the country, as well as a vote of confidence in relation to the policies we follow.”
One of the most crucial elements for creating a stable environment that will bring quality investments and other positive developments is the creation of conditions of complete transparency regarding the country’s economy, President Christodoulides continued, adding that there is a given and non-negotiable political will through specific actions to demonstrate zero tolerance for practices that have exposed the country in the past.
He added that towards this direction, the Government is taking specific actions, many of which he announced during the annual presentation of the 2024 programming, announcing a campaign for the rebranding of Cyprus, as, he said, for the first time, there is relevant financial provision in the state budget.
In conclusion, President Christodoulides said regarding the securing of suitable workforce by businesses that on December 20, the systems of the Ministry of Interior were integrated with those of the Ministry of Labor, and consultations have also begun with Egypt to secure labor force, as well as with India for skilled personnel, always based on the needs of the Cypriot economy.
“This discussion must continue. I firmly believe that your success at the end of the day will be our success too, while our success will help you achieve your own goals,” he concluded.
In its announcement, CCCI stated that the President and the members of the chamber presented their views and recommendations to the President of the Republic on issues concerning the economy, society, development, and the business world.
CCCI expressed concern about the continuous expansion of the public payroll without a corresponding increase in productivity and efficiency in the public sector, with bureaucracy increasing and delaying development. It also emphasized the need for digitalization of public services, as well as the promotion of tax reform as tools to attract/implement significant investments in the country, leverage private initiative, and increase citizens’ income.
According to CCCI, there was also emphasis on the increase in operating costs for businesses due to increases in CoLA, the National Minimum Wage, interest rates, energy costs, and raw materials.
Particularly highlighted was the significant shortage of labor, which further hinders the smooth operation of businesses, especially with the imposition of new taxes for the green transition expected.
CCCI recommended to the President that the Government announce some relief plans for businesses to ensure their sustainability and the preservation of jobs, concludes the announcement.