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Honorable Minister of Finance,
Honorable Chair of the Parliamentary Committee on Finance,
Honorable Mr. Chairman of the Cyprus Fiscal Council,
Ladies and Gentlemen,
It is with great pleasure that I accepted the invitation to address the opening address of today's conference, which deals with such a timely and critical issue that concerns us all. In this regard, I congratulate my friend the Chairperson of the Parliamentary Committee on Finance and Budget, Mrs. Christiana Erotokritou and the Chairperson of the Cyprus Fiscal Council, Mr. Michael Persianis, for their excellent initiative. The holding of today's workshop confirms the mutual will of the two bodies to further strengthen their cooperation. I expect that the fruitful dialogue that will take place today will lead to useful and usable conclusions, feeding into policy making.
First of all, I take this opportunity to welcome the provisional political agreement reached on 10 February 2024 between the Economic and Financial Affairs Council (ECOFIN) and the European Parliament on the new EU economic governance framework. In this regard, we look forward to the final adoption of the new rules before the end of the European Parliament's legislative term in April this year and to a smooth transition to the new requirements. At this point, I would like to stress the crucial importance of being co-shapers and not tailgaters of decisions taken at the European level in order to safeguard our national interests.
In particular, the new rules aim, inter alia, at simplifying, making transparent and strengthening national ownership of the fiscal framework and improving Member States' compliance with its requirements for a realistic downward path of public debt and limiting the budget deficit. We expect that the final text adopted after the conclusion of the trilogue process will deliver the desired results, both by contributing to effectively addressing the specific and emerging challenges of each country individually, through the abolition of the one-size-fits-all approach, and by providing sufficient fiscal space for value-added investment and reforms, especially in the light of the green transition and digital transformation.
Ladies and Gentlemen,
Admittedly, the Cypriot economy despite the adversities and unprecedented challenges faced in 2013 as a result of deposit write-downs, which literally brought Cypriot households and small and medium-sized enterprises to their knees, hitting vulnerable social groups hardest, it has managed to rise from the ashes, recovering rapidly and demonstrating its resilience to successive crises, external shocks and geopolitical uncertainty. Moreover, the upgrade of the Republic of Cyprus' credit rating and its investment grade classification by international rating agencies confirms the credibility of the Cypriot economy in international markets.
More specifically, as far as Cyprus is concerned, we are hopeful that the new fiscal rules will contribute to the smooth continuation of a sustainable and inclusive path of economic growth, financial stability and fiscal discipline. In addition, I would like to underline that deepening the social dimension of the new rules is indispensable to ensure a more promising future for future generations, so that progress in economic indicators primarily reflects the progress and well-being of citizens.
I would be remiss if I did not stress the crucial role that independent fiscal institutions have to play in this context, helping to strengthen the oversight and transparency of fiscal policy. Therefore, equipping the independent fiscal institutions with the necessary resources and ensuring that they have unhindered and timely access to the data required to carry out their economic forecasts and analyses is crucial for the proper performance of their supervisory role in relation to the medium-term structural budgetary plans of the Member States.
In conclusion, I would like to assure you that the House of Representatives, through the exercise of close parliamentary scrutiny, will closely monitor the implementation of the new rules, strengthening the democratic accountability and legitimacy of the medium-term national plans. In the exercise of its powers, the House of Representatives supports in every possible way initiatives that contribute to a constructive and productive debate on the impact of the new rules on the Cypriot economy. I am convinced that at the end of today's debate, substantial conclusions will be drawn and answers will be given to key questions in terms of satisfying our claims and aspirations, as well as allaying our possible reservations and concerns as a Member State.
(Text as sent from the House of Representatives)
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