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- Ελληνικά
Dear friends,
It is with great pleasure that I welcome, on behalf of the President of the Republic, the Annual General Assembly of the members of the Association of Large Developers.
Before any other mention, I would like to congratulate the members of the Association for their creative activity, which is recognized as being of lasting importance for the development of our country.
At the same time, I would like to express the State's appreciation for the cooperation and mutually beneficial synergies between us, which, as has been proven many times, have been of decisive importance for the creation of prospects for prosperity and progress in our country.
It is also a fact that, in addition to the large number of jobs created and the associated reduction in unemployment, the large private developments, following the economic crisis that hit our country, have brought additional multiplier benefits.
It is in this context, and given the impact of the coronavirus pandemic, that I consider it important that we have the opportunity today to exchange views and listen to your suggestions regarding our joint efforts to further strengthen your areas of activity.
As you are well aware, in parallel with the priority given to safeguarding the health and lives of all citizens, we have emphasised from the outset the need to support and protect jobs, the viability and liquidity of businesses, and the needs of vulnerable groups.
As a result of sound financial management, the economic performance recorded in recent years, but also with comfortable access to international markets, the Government achieved a timely strengthening of the State's liquid assets.
This allowed, through the implementation of a series of measures amounting to more than 1.9 billion euros, a return to growth and generous support for workers, employers, businesses and vulnerable groups.
Equally important in this successful direction was the diversification of the development model that we started in 2013. Our aim is to modernise the development model by implementing the green and digital transition and transforming Cyprus into a business centre.
A development model which, with a particular focus on the areas of, among others, university education, high-tech companies, research and innovation and renewable energy, helped contain the recession in 2020 and return to economic growth from 2021.
The value of implementing radical reform changes related to the functioning of the state and its structures, such as. [*]The implementation of the Minimum Guaranteed Income. [*]The reform of the public service. [*]Ensuring pensions for all above the poverty line. [*]Administrative reforms with the creation of Deputy Ministries in key areas. [*]A range of other reforms in the areas of e-government, energy, justice, education and agriculture. [*]As well as reforms pending before Parliament, which include, among others, the reform of local government, the Law on Facilitation of Strategic Investments, the fight against corruption and the introduction of transparency rules. [*]Of utmost importance is also the bill that has been tabled since 2019 and is under discussion, for the establishment of a new fast-track licensing procedure for strategic investments, in order to support and facilitate investment activity in Cyprus. [/LIST]
Ladies and Gentlemen,
It is a fact that the coronavirus pandemic, setting as the most important priority the safeguarding of the health and life of all citizens, has suspended our plans for the complete modernization of the state, while affecting the economy of the country again in a short period of time.
However, we are facing a new reality.
A new reality which constitutes a springboard for us to focus on further reactivating the economy and achieving long-term sustainable economic, social and environmental development.
It is precisely this prospect that we must focus on as of paramount importance in order to have the opportunity to respond adequately to the challenges of the new era, as well as to any possible unforeseen crises.
And it is in this direction that we have succeeded, through our manipulations, to move successfully, as is clearly evidenced by the European Commission's forecasts for this year, which recognize on the one hand the strong recovery of the economy, with growth rates higher than the European Union average, and on the other hand the strong dynamics of the Cypriot economy.
This is something we have achieved by, inter alia, further and targetedly strengthening the Urban Incentive Scheme, which we introduced in 2013, and which has so far yielded extremely positive results in the recovery of business activity. The Plan was updated and refined as recently as December 2021 to continue to provide a solid basis for your business planning, and to make a dynamic contribution to broadening the economic base, creating new jobs and providing an environment of stability. Also helping to strengthen the construction industry has been the new innovative process for fast-track planning and building permits for developments, within 10 days, which has been successfully implemented since October 2020, and which will be extended from next June to apply to a wider type and size of developments.
Momentum, which is also emerging as a result of what is included in the Recovery and Resilience Plan known as 'Cyprus - Tomorrow', which is the integrated development plan for the post-pandemic era.
This Plan envisages the mobilisation of a sum of €1.2 billion for the period 2021-2026 from the EU, while a total leverage of €4.4 billion is expected, taking into account the private capital that will be invested. The implementation of the Plan is expected to lead to an increase in Gross Domestic Product of 7.1%. Its implementation is also expected to create more than 11 thousand jobs.
Specifically, the plan includes 58 critical structural reforms and 75 substantial investments, across five policy pillars.
Focusing on the pillar relevant to your activities, which concerns strengthening the resilience and competitiveness of the economy, I report that it includes investments and reforms aimed at:
- Broadening the productive base, including by strengthening the primary and secondary sectors of the economy.
- Targeted strengthening of research and innovation.
- Addressing the inefficiencies in the system of issuance and transfer of property titles.
- Improve the electronic system for issuing building permits.
- Urban land reparcelling for the rational management and use of land.
- The acceleration of licensing procedures and the provision of incentives, aiming at improving competitiveness and the business environment.
- Digital transformation.
- The resilience of the financial sector and the fiscal situation.
- Supporting start-ups and innovative units.
- Promoting the green transition with a focus on enhancing energy efficiency and sustainable transport, as well as the circular economy.
- To diversify and further promote the tourism product.
- The modernisation of public administration and local authorities.
- Reform and enhance the efficiency of the judicial system.
- Fighting corruption and enhancing transparency.
I would be remiss if I did not mention that the Plan "Cyprus - Tomorrow" is fully aligned with the new economic model as presented through the new Long Term Strategy for the Sustainable Development of the Cypriot Economy prepared by the Cyprus Economic and Competitiveness Council with the support of the Government, which seeks to transform Cyprus into a "Sustainable Business and Trade Centre of Europe". The new Strategy contains more than 240 practical recommendations and aims to promote Cyprus as a model state, with high levels of competitiveness and resilience, increased productivity and export orientation, while ensuring sustainable growth and a just and inclusive prosperous society.
It is worth noting that significant investments in several of the priorities under the new economic model will also be promoted through the "THALIA" programme [/I] funded by the Investment and Structural Funds of the EU Cohesion Policy.
As I mentioned before, we attach great importance to the transformation of Cyprus into a sustainable business and commercial centre of Europe.
In addition to the existing attractive tax and other business incentives, the new national strategy for attracting businesses to operate and/or expand their activities in Cyprus is of paramount importance and a decisive contribution to this end.
This strategy includes actions and provides tax and other incentives related to human resources and residence and employment permits, tax treatment, simplification and digitalization of procedures, strengthening of the Fast Track Company Licensing Mechanism, as well as the promotion of our country as an attractive destination for investment.
Friends,
Apart from the great importance of adopting a targeted strategy, the crises we have had to manage in our country have demonstrated the importance of solidarity, the development of synergies and the undertaking of coordinated action between the political forces and the social partners of the country.
Faced, as I mentioned before, with a new reality, full of prospects for the further consolidation of sustainable economic growth in our country, I have no doubt that the members of the Association of Major Developments will be at the forefront, so that the new effort we are making will be crowned with success.
In conclusion, I would like once again to congratulate both the leadership and all the members of the Association for the activity they are developing.
I wish you every success in the work of your General Assembly.
Thank you.
EFYs/EXP
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