The General Secretary of the K.E. of AKEL Stefanos Stefanou, informed yesterday, by letter, affected stakeholders about the targeted initiatives undertaken by AKEL in relation to supporting the economy and households, as well as addressing the consequences of the rise in prices of raw materials, basic goods and services.
The framework of AKEL's actions includes.
The comprehensive memorandum of proposals to the Deputy Minister of Tourism to address the impact on tourism and the tourism industry.
The proposal to the President of the Republic and the Minister of Energy to conduct competitive tenders for renewable energy projects.
The targeted proposals to the government to support critical industries and sectors of the economy.
AKEL insists on taking substantial measures to curb increases in the cost of energy, fuel and other basic goods on the one hand, and on the other hand to support the already limited disposable income of consumers, which is currently being eroded due to price rises.
The attached letter has been sent to the PBCC, the Cyprus Consumer Association, the Cyprus Consumers and Quality of Life Association, the Cyprus Chamber of Shipping, the Federation of Employers and Industrialists, the Cyprus Chamber of Commerce and Industry and the Cyprus Hotel Association.
The main part of the letter:
"Following the meetings we held with various institutions during which we discussed the economy and particularly the problems caused in our country by the increase in prices of raw materials, basic goods and services, we would like to inform you about the initiatives we have undertaken.
First of all, we note that the price increase predates the war in Ukraine. The sanctions imposed on Russia as a result of its invasion have intensified the energy stalemate, the crisis in the supply and food chain and the impact of the fall in consumer spending on tourism and trade.
Bearing this situation in mind, the State's assistance in tackling - as far as possible - price rises and inflation is essential. The delays in the implementation of an integrated energy strategy, the continuous shipwrecks in relation to the arrival of natural gas for power generation purposes, the low share of RES in the energy balance and the closure of the Grains Commission are factors that have limited the potential of the Cypriot economy to address these phenomena.
It is our basic assessment that without substantial measures the already limited disposable income of consumers will not be able to secure basic goods, while at the same time the already limited disposable income of consumers will not be able to meet the demand for basic goods. The decline in consumption has a chain effect on workers and businesses who have to cope with the decrease in their turnover and the serious increase in operating costs.
In this critical phase that Cyprus is going through, we as a Party have taken a number of initiatives and submitted proposals as part of the efforts to support the economy and households. We note that from the very first moment, in a letter to the President of the Republic, we called for a meeting of the Council of Chiefs to discuss and assess the consequences and problems caused by the war in Ukraine and the sanctions imposed. We believe that collectively we must work to address their problems. Despite the President's assurances, unfortunately the meeting did not take place in the end. Despite this, we went ahead and took initiatives to address the price tag and energy poverty.
We placed special emphasis on trying to contain the increases in the cost of energy, fuel and other basic goods, with the following actions. The proposal was approved by a large parliamentary majority, but its implementation is pending after the President of the Republic referred it to the Supreme Court. We note that we made a commitment that the VAT reduction will apply as long as the current conditions prevail.
2) We submitted a Proposal for a Law to broaden the grounds for issuing a cap on fuel so that it is not limited only to the finding of obscenity, but takes into account more grounds, especially those included in the legislation on caps on the prices of basic goods.
3) We submitted a Proposal for a Law to end the double taxation of fuel so that VAT is not imposed on the excise tax on petroleum products.
4) In a meeting with the President of the Republic and the Minister of Energy, we requested that the government proceed with the tendering process for renewable energy projects and storage systems. Such a development would lead to a reduction in electricity prices per kilowatt hour (letter attached).
5) We submitted a comprehensive memorandum of proposals to the Deputy Minister of Tourism to address the impact on tourism and the tourism industry (attached).
6) We called for the continuation of targeted support from the state to the industries and sectors of the economy affected by the sanctions imposed.
7) We asked the government to appeal to the EU to show practical solidarity with Cyprus and for targeted sanctions so as to protect the economies of the member states and the EU itself.
We are of the opinion that all of the above can be decisions and actions that contribute significantly to absorbing the shocks that inflationary pressures and accuracy bring to the Cypriot economy and households.
We are at your disposal to continue the dialogue in order to help our country and our people."
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