The meeting took place in the context of AKEL's meetings with protagonists of the Cypriot economy, with the aim, as Stefanos Stefanou said, to discuss solutions in a period that he described as "a crucial crossroads for the global, but also for the Cypriot economy."
"I am even afraid to predict where fuel prices will reach," said AKEL's General Secretary, Mr. Agostantinos Stéphanou. Agastiniotis
Referring to the developments in Ukraine, which are expected to exacerbate the problem of prices. Agastiniotis said in a statement that he is "very concerned about the energy sufficiency of Cyprus, but also the grain sufficiency, which will have a huge impact on the economy," stressing that these are the two main problems that the Cypriot economy is facing today.
"Our dependence on liquid fuels is absolute and I am afraid to even predict where the prices will reach," he said. Regarding cereals, he explained that because in Cyprus we import 95% of our needs, their shortage can directly affect the food chain and thus the consumer's pocket.
Referring also to the possible impact on tourism, he said it is the fourth summer season approaching with bleak prospects, but expressed confidence that "we will fight it". As for banks in Cyprus, he said he was optimistic that they would not be affected by suspension of swifts, as "at the moment they are all purely Cypriot."
"We are too small and weak a country to have a catalytic effect on global economic developments, but I think we are wise enough to protect our system as much as possible."
"We are too small and weak a country to have a catalytic effect on global economic developments, but I think we are wise enough to protect our system as much as possible. We will certainly not come out unscathed," he said.
Agastiniotis said that next week the CCCI will also have a meeting with the government to recommend measures to make the economy run as smoothly as possible. "We need to control accuracy to the extent possible, because it affects the position of the consumer," he explained.
Efforts to facilitate the establishment of Ukrainian citizens and companies in Cyprus
In response to a relevant question, he also referred to the intention expressed by Ukrainian companies to relocate their operations to Cyprus, as mentioned in a statement made the day before yesterday by the Ukrainian Minister of Finance.
"We have already discussed the issue with the Minister of Interior, who is constantly dealing with it, and we are in an open line of communication," Agastiniotis said. "Certainly both Ukrainian citizens andUkrainian companies will ask for headquarters elsewhere, so we are trying to make Cyprus one of those destinations where relocation can be done with relative ease," he explained, adding that such a development will also help the Cypriot economy, which will become a base for new companies, new investments, as well as workers who will spend to live in Cyprus.
The consequences of the war should be studied quickly and the government should move swiftly, S. Stefanos Stefanou
The Secretary General of AKEL, Stefanos Stefanou, said that the pressures on the Cypriot economy and society, with the increase in the price of basic goods and raw materials, due to the conditions on the world market, have become even more intense with the war going on in Ukraine.
In response to a question, he said that the government should have already prepared. "Of course, the war could not have been foreseen, but the government should have been prepared in terms of the global situation, both because of the pandemic and because of other factors leading to rising prices for energy and raw materials," he explained.
He said that the discussion on the Cypriot economy should be conducted on two axes, on the one hand, how Cyprus can develop its economy in this international environment, and on the other hand, measures to deal with the consequences of the war in Ukraine, against the background of the EU sanctions against Russia, which will inevitably affect Europe in general, but especially Cyprus.
"The consequences of the war must be studied quickly and the government must move swiftly, because developments cannot wait," he said, and assured that AKEL is ready to contribute with its knowledge and experience.
KEBE remains a supporter of the GHS and calls for rationalisation and supervision
"We are supporters of the huge social achievement that constitutes the GHS, which is here to stay and we must all support it," the President of the KEBE said, referring to the debate surrounding the recent developments in the operation of the GHS.
"We expressed our concern[/B] about the management of GESY's resources and asked for rational management and more supervision, so that GESY can move forward and become established in Cyprus, without having its results as in the past, with situations that were not controlled and ended up as a boomerang for the Cypriot economy, such as the Co-operative," he said specifically.
For his part, Stefanou said that AKEL has prepared a comprehensive evaluation of the GESY for its first two years of implementation, which "will be presented next week, along with proposals for further supporting this great achievement for Cypriot society, maintaining the philosophy and architecture of the system, but addressing any problems and any distortions that have arisen".
AKEL proposed the formulation of a new development model for the Cypriot economy
The need to elaborate and formulate a new development model for the Cypriot economy, "which ensures sustainability and depth in the Cypriot economy and invests in the comparative advantages of Cypriot democracy," AKEL said. Stefanou said that through this model "wealth must be produced, so that the social state is supported by correct redistribution policies of profit, in order to provide a satisfactory standard of living for citizens."
"We have formulated a framework and we agreed that this issue will be raised at the next meeting with the KEBE and the protagonists of the economy. The economy must serve society, citizens and the social state," he added.
For his part, the President of the KEBE handed over to the General Secretary of AKEL a 66-point memorandum which includes, among other things, suggestions concerning the regulatory and supervisory framework, transparency and anti-corruption issues.
The meeting also discussed the labour shortage in all sectors of the economy, issues related to the judiciary, reforms in the Civil Service and local government with emphasis on the modernisation of the state, and issues of bureaucracy and inefficiency of the Civil Service.
Particular emphasis was placed on the issues of Green Entrepreneurship, Digital Transformation, minimum wage, the pension system and the need for a comprehensive tax reform, with the ultimate goal of designing a new, sustainable growth model for the country.
The two sides said they had a friendly and constructive discussion and their intention is to institutionalize these meetings on a monthly basis. Agastiniotis stressed that "only through dialogue and exchange of views can we achieve the best for the Cypriot economy", while Stefanou confirmed AKEL's intention to continue the meetings.
Source: CNA
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