Once again I welcome you to the third conference to take stock of ten years of governance, in connection with the legacy of the National Plan "Cyprus - Tomorrow".
In the first conference I recorded the Government's policies and actions to build a real and inclusive Welfare State, while the second conference dealt with an area fully linked to social policy, namely the creation of a modern and resilient health system.
Today's conference concerns an equally important pillar that touches on the horizontal policy for the modernisation and reconstruction of the State.
It was a common finding that the administration system was structured according to the data and prevailing concepts of a bygone era, with a Constitution that, over time, did not meet the requirements and needs of efficient and effective governance.
Despite the occasional amendments to the Constitution, the decisive changes that would make the Central State ready and able to keep up with the new data as they were formed especially after the accession of the Republic of Cyprus to the European Union were missing.
Taking into account the weaknesses, the hydrocephalus of ministries, the dysfunctioning of the central and the wider public sector, without ignoring the need to build a reliable rule of law, we proceeded with radical reforms for the reconstruction and modernization of the State, as they will be described below.
The presentation of the government's work under this pillar, as well as the provisions of the Plan "Cyprus - Tomorrow", will be analysed in five sections.
The first section deals with a series of important reforms and structural changes that are relevant to the proper functioning of the State.
The second section relates to the building of the rule of law, with a fundamental reconstruction of the justice system and a series of laws that strengthen the whole anti-corruption framework and provide a strong basis for transparency and accountability.
The third section relates to actions and strategies not only to modernise and restructure the State in individual policy areas, but also to improve the services provided to citizens.
The fourth section relates to major development projects on a nationwide basis to improve the quality of life of residents.
The fifth section focuses on what is envisaged in the Plan "Cyprus-Tomorrow" to complete the plans for the full reconstruction and modernization of the State.
As I mentioned above, the first section concerns reforms and structural changes in the State's operating structures.
Towards this goal, we have proceeded:
1.
1. The creation of politically and administratively independent Deputy Ministries of Tourism, Shipping, Research, Innovation and Digital Transformation, Social Welfare and Culture, aiming at a more efficient and orderly operation of nerve-wracking and vital sectors that until recently were either parts of Ministries or responsibilities of Semi-State Organizations.
This is because it had been established that the limited number of Ministries charged with a number of overlapping responsibilities led either to the non-implementation of government decisions or to the inability to draw up specific planning or even to the indecisiveness of taking any initiatives.
The tangible and immediate results of the decongestion of the Ministries are already recorded by the performance of these Deputy Ministries.
The tangible and immediate results of the decongestion of the Ministries are already recorded by the performance of these Deputy Ministries.
Without going into the details of the work done, since the Ministers and Deputy Ministers in charge will in the next few weeks give an extensive account, I will suffice to mention that:
(a) With the creation of the Deputy Ministry of Tourism, modern administrative structures were created, both with the integration of the Cyprus Tourism Organisation and other services.
Most importantly, however, is the formulation of new strategies, with innovative ideas related to the development and promotion of the country's tourism product.
The results are recorded by the significant increase in the sector's contribution to the country's Gross Domestic Product, with the creation of new jobs and other important benefits for many other sectors of the economy. This year's results were the result of this strategy.
(b) The creation of the Deputy Ministry of Shipping led to the adoption of the national strategy "SEA CHANGE 2030", as a result of which the 97 registered companies before the creation of the Deputy Ministry have now more than doubled to 275, while a number of shipping companies have moved their headquarters to Cyprus or are planning to do so.
(c) The need for a targeted social policy led to the creation of the Deputy Ministry of Social Welfare, giving the required emphasis to the operation of an effective and vulnerable groups friendly Welfare State.
The achievements of the Deputy Ministry were described in detail in the first Presentation and therefore I will not make a specific reference.
(d) The creation of the Deputy Ministry of Research, Innovation and Digital Transformation integrated the scattered related services in various Ministries, but, more importantly, it was a fundamental part of the overall digital transformation and e-government effort.
(d) The creation of the Deputy Ministry of Research, Innovation and Digital Transformation integrated the scattered related services in various Ministries, but, more importantly, it was a fundamental part of the overall digital transformation and e-government effort.
In this context, dozens of bureaucratic Services have already been abolished, offering citizens the possibility of direct access and tele-service.
And it is no coincidence, and I underline this, that the Ministry of State for Research contributed significantly to the successful response to the pandemic through the electronic solutions it provided.
I need only mention that in the four years of operation of the Deputy Ministry, Cyprus, according to the European Innovation Scoreboard 2022, is ranked among the "Strong Innovators" in Research, Innovation and Digital Transformation in Europe, occupying the 10th position and having achieved the greatest improvement in performance across Europe, and is ranked 27th globally, according to the Global Innovation Index 2022.
In saying this, I am not claiming that in a short time it would be possible to achieve the full digital transformation of the country.
Therefore, and as I will refer to the National Plan 'Cyprus-Tomorrow', a significant proportion of the projected expenditure, amounting to 23% of the total Plan and corresponding to EUR 282 million, is expected to be allocated to the completion of the digital transformation.
(e) The newly established Deputy Ministry of Culture creates a new context for the emphasis we want to place on the cultural sector and, despite its short-lived operation, already sets the tone for a new holistic approach to cultural issues.
3. Another of the reforms for a more efficient functioning of the State, while ensuring both productivity and meritocratic advancement of civil servants, is the reform of the Civil Service.
Another reform that has been pending for decades.
4. The introduction of new Directorates General in Ministries and the consolidation of overlapping services by creating a single directorate in the Ministry responsible for them are part of the framework for a more efficient State.
5. Another important area of administration and a more efficient State is the reform of the local government sector, making local entities administratively and financially autonomous and self-sufficient, enhancing their capacity and ability to improve and expand the services provided to citizens.
6. In the context of modernising and creating a State that is more efficient for the needs of its citizens, a number of other important reforms in the areas of health and social policy, on which I have reported extensively during the two previous presentations, are also included.
7. In the same context, with the aim of transforming the State into a more effective State, there has been the expansion and appointment of new Commissioners, highlighting the Government's interest in cutting-edge areas for Citizens, such as.
(a) The re-establishment of the Commissioner for Humanitarian Affairs for Internally Displaced Persons, Resettled Persons and Religious Groups.
(b) The appointment of the Commissioner for Mountain Communities and the preparation, for the first time since the establishment of the Republic of Cyprus, of the National Strategy for Mountain Communities.
(c) The creation of a Commissioner for Citizens, with the aim of strengthening participatory democracy and undertaking coordinating actions relating to volunteering.
(d) The creation of the Commissioner for Gender Equality.
(e) The establishment of the Commissioner for Finance. He was not secured by legislation.
Turning to the second section on strengthening the rule of law and the legislative framework for fighting corruption, I would like to point out the following:
The realization that the system of administration of justice remained stuck in the conditions prevailing at the establishment of the Republic of Cyprus, and always in close cooperation with the Supreme Judicial Authority of the country, resulted in the adoption of a series of measures and individual reforms that eventually led to the fundamental reconstruction of the country's judicial system.
(a) The first measure was to increase the number of judges by 40, an increase of 54%, not including the increase in the number of judges of the Supreme Court and the Court of Appeal, as eventually formulated through legislation to modernize the justice system.
The creation of specialized courts such as the Commercial Court, Maritime Court, Administrative Court and Court of International Protection,
[C] The fundamental reform of the country's judicial system was completed and will be implemented as of July 1, 2023, with the operation of the Supreme Constitutional Court, Supreme Court and Court of Appeal.
(d) At the same time, in an effort to protect and safeguard the rights of the child, we proceeded to.
(ii) In strengthening equality between spouses in both property matters and matters relating to the care and custody of children, through the fundamental reform of the Family Law Act, through the passage of four bills, while four others are before the House of Representatives and I hope that upon reopening they will be passed.
Fighting Corruption:
(a) The establishment of the Independent Authority against Corruption, which, among other things, has powers to investigate complaints and information related to acts of corruption in the public sector, the wider public sector and the private sector and to prepare reports with recommendations and proposals for the prevention and combating of acts of corruption to the relevant Services.
(b) Ensuring transparency in the decision-making processes of the public and wider public sector, so-called lobbying, in order to prevent the creation of conditions that allow corruption to occur. We are witnessing what is happening in the European Parliament.
(c) The protection of public interest witnesses (whistle-blowers), with the aim of fully protecting those whose testimony contributes to the prosecution and conviction of those involved in illegal or corrupt acts.
At the same time, taking into account the reports of the European Commission, the recommendations of International Organizations, as well as the best practices at the international level, we proceeded to update and introduce the National Horizontal Anti-Corruption Action Plan, which includes a series of 52 actions that provide for the strengthening of institutions for the prevention of corruption phenomena, as I would like to point out indicatively:
(a) The full staffing and training of all Internal Audit Units of Ministries and Deputy Ministries.
(b) The establishment of the Financial Crime Investigation Sub-Division of the Police Headquarters, which is staffed by scientifically trained and qualified personnel for the investigation of serious cases of a financial nature.
(c) The establishment of the Anti-Corruption Unit as the specialised mechanism for the investigation and prosecution of corruption offences, headed by the Attorney General and Assistant Attorney General of the Republic, with the participation of representatives of the competent services.
(d) The creation of a Register of Beneficial Owners of companies and other legal entities, in order to protect the financial system from the risks of money laundering.
(e) The institution of mandatory internal mobility of human resources with rotation in positions of responsibility at reasonable intervals, in order to prevent the risk of the development of phenomena of complicity and corruption in the Public Service.
(f) The creation of the Ethics and Sports Protection Committee, with responsibilities for the ex officio examination of suspicious betting activities and investigation of complaints or information about possible manipulation of a sporting event.
The third section concerns actions and strategies, not only to modernise and restructure the State in individual policy areas, but also to improve the services provided.
More specifically, we proceeded. The modernization of the education system, through the introduction of a new, modern and meritocratic Appointment System in Education, based on the results of written examinations, the introduction and implementation of the unified Student Evaluation Plan and the implementation of Quarterly Examinations, with the aim of improving learning outcomes.
Equally important are the reform actions taken to extend free compulsory pre-school education from the age of four, and to cover tuition fees for children aged 3 years to 4 years and 8 months attending public or private kindergartens.
Actions that are expected to make a major contribution to increasing the participation rate of inactive people in the labour market and improving the availability and affordability of education and care for all.
2. To enhance the deterrent power and the strength of the National Guard, we proceeded to create a modern, semi-professional army, while reducing the service of conscripts from 24 to 14 months, and implemented important equipment programmes which, for obvious reasons, I do not wish to mention.
3. To strengthen and protect the agricultural sector, we proceeded for the first time to establish a register of farmers, so that subsidies are targeted at real farmers.
To safeguard agricultural production, we reformed the entire system, abolishing the OGA and introducing the institution of a fund to guarantee income from agricultural production.
It is worth noting that from 2013 to date, amounts exceeding 100 million euros have been paid to farmers who have suffered damage to their production due to natural disasters, adverse weather conditions or extreme weather events.
It is worth noting that from 2013 to date, amounts exceeding 100 million euros have been paid to farmers who have suffered damage to their production due to natural disasters, adverse weather conditions or extreme weather events.
At the same time, since 2014, when the current period of implementation of the Common Agricultural Policy started, more than 750 million euros of European and national funds have been specifically allocated to the rural world, while the budget of the new Rural Development Programme for the period 2023-27 will exceed 450 million euros.
4. With regard to housing policy and the acquisition of first homes, a series of plans were adopted which for 2022 amount to 125 million euros, representing a 100% increase compared to the 2018 budget, and during the decade we proceeded with the allocation of land for the construction of housing to 1.888 families.
At the same time, the Cyprus Land Development Agency allocated 284 housing units to beneficiaries meeting specific income criteria, while the programming for the period 2022 to 2027 is estimated to exceed 900 new housing units, with expenditure in excess of €150 million.
Within the same framework is the adoption of generous incentives and grants for the acquisition of first homes in 386 communities, while in line with the same policy the interest rate subsidy for taking out mortgages by households is also included, with the State taking over the interest rate subsidy for 4,800 new mortgages.
In addition, in order to protect vulnerable borrowers who are unable to repay debts for the acquisition of their first home, three Plans have been drawn up, the "ESTIA" and "OIKIA" Plans, while to cover those who did not meet the criteria of the selected Plans, the "Rent versus purchase" Plan has been drawn up, for which the approval of the European Commission is expected.
Also related to the housing policy is the reform concerning fast-track planning and building permits, which came into force on 1 October 2020.
5. In order to increase tax revenues, reduce compliance costs and ensure fair treatment of taxpayers, we proceeded with the establishment of a single Tax Department by consolidating the Internal Revenue Department and the Value Added Tax Department.
6. With the aim of creating an efficient, fast and modern Service based on simplified procedures, we proceeded with the reorganization, modernization and complete digitalization of the Department of Companies and Intellectual Property Taxes.
7. With the aim of instilling a road safety culture and reducing accidents, we proceeded with the installation of an extensive system of photo-identification cameras.
8. Implementing policies aimed at the green transition:
(i) We implemented grant plans for the period 2013 to 2022, amounting to more than 487 million euros for energy upgrading of households and businesses and installation of Renewable Energy Sources.
It is noteworthy that while the share of renewable energy in final energy consumption in 2012 was just below 8%, by 2021 it had more than doubled and now exceeds 18%.
(ii) To the same end, sponsorship plans worth EUR 90 million were adopted to promote electromobility.
9. To support youth and women entrepreneurship, small and medium-sized enterprises and the manufacturing and wine sector, we adopted sponsorship plans for the period 2014 - 2022 in excess of €151 million, with a total relevant amount for 2023 of €160 million.
The fourth section concerns the Government's development projects to improve the quality of life of residents in each municipality and community of Cyprus.
In this context, the State proceeded to implement development projects amounting to more than 4.6 billion, which have either been completed or are under construction.
What particularly satisfies me is that we have literally transformed and reshaped every corner of Cyprus, implementing the largest development programme since the establishment of the Republic.
You only need to visit the urban centres of the municipalities, in previously neglected communities, to understand the scope of the projects and the change for the better that has taken place.
It would not be possible for me to give an extensive presentation of the projects, which are, after all, posted on the Presidency's website.
But allow me to refer to how we have proceeded to implement projects that for decades were repeated, unfulfilled promises, while these projects have been carried out in the last 7 years, since until 2015 the priority was the survival of the country through dealing with the crisis and the recovery of the economy.
Allow me to make only an indicative mention of the most important major infrastructure projects in my opinion.
(a) The start of construction of major road projects, such as the Limassol - Saita, Paphos - Polis Chrysochous, Nicosia - Paleochori, Astromeritis - Evrychos, Larnaca - Dhekelia motorways, not to mention the Nicosia peripheral motorway.
(b) The creation of the new energy centre in Vasilikos, which is a flagship infrastructure project for the reception of natural gas and more, with the simultaneous relocation of refineries and energy storage facilities.
(c) To improve the provision of medical care services, we have implemented or are implementing development projects amounting to 351 million euros.
By way of illustration only:
(i) Construction of a new inpatient building at Larnaca General Hospital.
(ii) Upgrading the Kyperunta Health Centre to a regional hospital, including, inter alia, the pulmonology clinic.
(iii) Establishment of a dialysis unit at Paphos Hospital.
(iv) Construction of a new Mental Health Centre.
Not to mention the establishment and upgrading of the Regional Health Centres.
(d) Emphasizing the upgrading of the education provided, but also the policy of turning our country into a regional educational centre, we have invested more than 330 million euros in projects related to schools.
At the same time, the State's investments in state universities exceeded 385 million euros, while, thanks to the targeted incentives of the State, it was possible to attract foreign investment in order to create new private universities and upgrade existing ones.
Suffice it to mention that in the academic year 2012-2013, out of a total of 32 thousand students attending the Higher Educational Institutions of Cyprus, only 8 thousand were citizens of other European and third countries, while today there are 54,235 students, of which more than 30,000 students are citizens of other European and third countries.
(e) Related to the modernisation of the judicial system to which I have referred, is the construction and renovation of judicial mega-courts such as the Paphos and Nicosia District Courts, the construction of a new Famagusta District Court and the Administrative Court and the launching of construction works for the new Nicosia District Court, the Family Court and the Labour Court.
(f) While, in the effort to promote cultural heritage, we have proceeded to upgrade the Paphos and Larnaca archaeological museums and, in my view, the most important is the construction of a new 140 million euro archaeological museum in Nicosia for which the contract has been signed and the foundation stone will be laid on 23 January.
I have limited myself to the Government's development projects, but I could not briefly fail to mention the attraction of large foreign and domestic investments due to the stable economic and fiscal environment.
Investments and projects worth billions of euros, such as the Integrated Multi-Theme Casino, the four new marinas, the new port of Larnaca, but also a very significant number of emblematic and other residential, commercial and tourism developments throughout the country, which significantly enhance the country's growth prospects and potential and create thousands of new jobs.
I realize that the listing of a pile of reforms, actions and policies may be tiring, but the work produced in the reconstruction and modernization of the State left me with no other option.
Besides, I have chosen to refer indicatively to the main reforms and strategies, as there are dozens of others to which the competent Ministers will refer extensively during the presentation of the report of their work.
The fifth and last section relates to the reform and investment actions of the Plan "Cyprus - Tomorrow".
A Plan which is a legacy for the continuation and completion of the efforts we have begun for the total reconstruction and modernisation of the State.
This is because it is the largest reform and development intervention since the establishment of the Republic of Cyprus, through a package of 133 measures, of which 58 relate to reforms and 75 to investment actions.
At the same time, taking into account the funds of the Recovery and Resilience Plan, the Cohesion Policy Fund, as well as the additional private investments that will result from the implementation of the supported projects, not counting the expenditure of the annual budgets, the economic impact of the Plan "Cyprus - Tomorrow" amounts to EUR 4.4 billion.
During my recent speech on 02 December at the 1st Annual Event of the Cyprus Tomorrow Plan, I expressed my great satisfaction with the achievement of the first fourteen milestones of the Plan and the subsequent disbursement of EUR 85 million.
While, during the presentation of the Plan 'Cyprus - Tomorrow' on 17 May 2021, I had referred extensively to the provisions of the Plan, as I had also highlighted during the two previous conferences individual reform and investment actions related to the health and social welfare sectors.
Therefore, I will avoid repeating individual references.
What I would like to stress is that the Plan "Cyprus - Tomorrow" is my legacy, the legacy of the Government, so that the country can continue, strengthen and complete its modernisation and reconstruction efforts in an environment of competitiveness, environmental and digital development and social justice.
Based on what I have said, I believe that over the last decade, thanks to boldness and determination and regardless of the political cost, we have undertaken reform actions that for decades society has demanded, while implementing hundreds of national strategies and actions.
This undertaking, like any major change, has presented many challenges and difficulties, especially considering that the Government did not enjoy a parliamentary majority.
For this reason, once again I wish to thank both the Parliamentary parties and especially the President of the Democratic Rally, Mr. Averof Neophytou, who through synergies, contacts and consultations, made it possible to create a majority in order to overcome the problems we faced due to the lack of a majority. At the same time, I would like to thank the social partners, but also the Cypriot people as a whole for their support and help in this unprecedented and necessary change in the structures of the State, which remained trapped in the mentality of the newly established Republic of 1960.
I want to be, as I have always been, sincere. I do not claim that no mistakes were committed during our governance or that there are no gaps, weaknesses and omissions or that it would have been possible and feasible to completely transform an entrenched, inflexible and outdated system of administration.
But we have dared, through structural changes and addressing chronic and systemic distortions and problems, to lay solid foundations towards further reconstruction of the State leading to the Cyprus of the new era.
At the same time, with a sense of responsibility we deliver the strategic planning as envisaged in the National Plan "Cyprus - Tomorrow", which will lead to further restructuring, and modernization of the governance structures of the State that we have launched.
(PM/IC)
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