It also notes in relation to the reduced VAT rate of 5% on the delivery or construction of housing the issue arose after a complaint by the same MEP Costas Mavridis "for purely petty political purposes, putting the state in an embarrassing position, leading to a modification of the framework by making it stricter".
Specifically, in its statement on the statements of Mr.Mavridis, it says that "in accordance with the relevant Regulation 2021/241/EU, the Recovery and Resilience Plan (RSP) of Cyprus was prepared after consultation with stakeholders including political parties and after dialogue with the EU Commission".
"In addition to promoting the green and digital transition, the SDS had to effectively address the challenges identified in the European Semester and in particular in the 2019 and 2020 Country Specific Recommendations," it adds.
Regarding, it is noted, "therefore, the criticism made in relation to the non-inclusion of policies that promote social housing in the SDS, it is noted that, unlike other countries, such as Greece, Spain, Ireland and Sweden where reference is made in their Per Country Recommendations, in the case of Cyprus there is no reference to the issue of social housing/affordable housing and, as a result, social housing as an investment pillar is not reflected in our national SDS".
Nevertheless, it is clarified, "the National SDS has included expenditure on energy upgrading which is a major challenge for the family budget. In particular, around €100 million will be allocated to energy retrofit projects, of which more than €20 million will be allocated to energy upgrading of housing and tackling energy poverty."
"In addition to the CIP, the State is implementing a range of housing policy projects for which expenditure in 2021 amounted to around €95 million."
"In addition to the CIP, the State is implementing a range of housing policy projects for which expenditure in 2021 amounted to around €95 million, while according to the approved 2022 Budget, an expenditure of €116 million is foreseen," it said.
The Ministry of Finance's statement concludes by noting that "with regard to the provocative statements about the government's manipulations in relation to the imposition of a reduced VAT rate of 5% on the delivery or construction of housing, it is stressed that the issue arose after a complaint by the same MEP Costas Mavridis for purely micro-political purposes, putting the state in a difficult position, leading us to modify the framework by making it stricter".
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