Details regarding the next round of support measures offered by the government to help alleviate the rising cost of living will be announced within the next month, Finance Minister Makis Keravnos said on Wednesday.
Speaking after a meeting with pro-government political parties Dipa and Edek, he was swift to issue a reminder regarding the types of measures which would be offered, based on the recommendations issued to the government by both the European Commission and the International Monetary Fund (IMF).
“The measures must be targeted, they must be measures with a fixed duration which really give relief to those of our fellow citizens who are in need, and vulnerable groups, as well as the middle class in general,” he said.
He added that the government is “constantly concerned” about the cost of living and “the issues which plague our society”, and that “on a continuous basis, we are studying, weighing up the data, and so far, we have announced very many measures”.
To this end, he said, the government is “continuing to study the issues so as to be ready to intervene and offer relief to our fellow human beings in need”.
He said he was not able to go into specifics regarding the planned measures yet, as the matter will have to be discussed at and approved by cabinet.
“We are weighing up all the facts and of course doing so within the context of the government’s financial capabilities,” he said. “I think we protect everyone better when we protect our economy.”
He then returned to the issue of international organisations’ view on Cyprus’ economy, saying improved forecasts for the island’s economy issued by both the IMF and the World Economic Outlook are “an encouragement”.
He added that they are “a confirmation that we are following an economic policy which is balanced, brings us good results, and will create possibilities for us to be able to deal with our society’s needs even more effectively.”
Earlier in the year, he had said the government had been given “strict warnings” by the European Commission against implementing and extending across-the-board economic measures, with targeted measures for vulnerable sections of society now favoured.
Additionally, the IMF’s deputy chief Alex Pienkowski had called on the Cypriot authorities to “resist” any further expansion of “non-targeted reductions in excise taxes and VAT”.
Pienkowski painted a largely rosy picture of Cyprus’ economy, however, also concurring with Keravnos’ view that Cyprus’ economy is performing better than many countries in Europe.
“Supported by strong policies, Cyprus has recovered quickly from the Covid-19 pandemic and has proven to be broadly resilient to multiple adverse shocks. Its growth rate is above most of its European partners and inflation is approaching two per cent,” he said.
This, he said, came “despite difficulties stemming from higher interest rates and weak activity among trading partners”.
