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- Ελληνικά
"Cyprus as a pole of political and economic stability in the Eastern Mediterranean - The impact of international initiatives and regional partnerships"
[/P]It is with great pleasure that I am participating in the 14th Nicosia Economic Conference. A Conference that has become an annual institution and a platform for fruitful public dialogue on key issues of the Cypriot economy, between the Government and the business and academic world. I would therefore like to congratulate the organizers, because it is through such initiatives that cooperation and the exchange of views and knowledge is enhanced, which can only have a positive impact on the economic development and prosperity of our country, which I consider as our common goal.
Moreover, dialogue and consultation with all of you are essential ingredients in the design of effective and targeted initiatives on the part of the executive branch to address the challenges we face as a country, through the utilization of our own resources. We have also established, as part of ongoing accountability and transparency, the Annual Report on the Government's work. These two initiatives, innovations if you like, contribute, among other things, to our shared vision of taking our country even further forward, methodically and always collectively and in partnership with all of you.
I will attempt to present how we can achieve our goal, which is to strengthen the resilience of the Cypriot economy and its competitiveness.
Economic and political stability are intertwined concepts that interact, both within a country and in bilateral and multilateral relations between states. Internally, a stable political situation is one of the key ingredients for the development of a dynamic economy. By the same reasoning, between states, strong political ties can create the conditions for two-way trade and investment, while the reverse is also true, as prospects for economic cooperation can strengthen bilateral relations, thus promoting stronger political ties.
Cyprus, located in the heart of the Eastern Mediterranean and the wider Middle East, a link in deeds and not in words between the often volatile Middle East region and Europe, seeks to act as a pole of stability and security but also as the entry - and we see in practice how neighbouring states approach us - of the states of the region into the European Union. An aspiration that has even more added value, especially in the current geopolitical situation
Maintaining, therefore, as well as strengthening and deepening our relations with neighbouring states - we are not the USA, we are not Germany, we know very well who we are, we have to have goals, we have to know which countries we are aiming to attract and have the corresponding results - is a central pillar of the foreign policy of the Republic of Cyprus, something we have achieved in recent years.
A policy that promotes synergies and cooperation in practice, helping to unleash and exploit the huge potential of the region, in a way that creates added value for the benefit of all the peoples of the region and the European Union itself.
Central to this effort has been, and to some extent continues to be, the energy sector. Particularly at the present juncture, with the energy crisis plaguing Europe and beyond, the countries of the Eastern Mediterranean can, through synergies, become part of the solution for ensuring the much sought-after energy security of the European Union, through the transport of natural gas and green energy to European markets. This is something that we are discussing with the energy giants operating in our EEZ - we are well underway in our discussions and I hope there will be announcements soon - but also with neighbouring states, and it is in this context that I will also discuss with the Head of ENI, who will be in Cyprus soon to present how to develop the fields as soon as possible.
Another concrete example of such cooperation is the Greece-Cyprus-Israel "Great Sea Interconnector" electricity interconnection project, for which we have expressed our political support. It is something in which investment funds in the region, and not only from the US, have already shown interest, and it has the potential to contribute to the energy security not only of the countries involved, but also of Europe.
The well-developed network of cooperation and the excellent relations that the Republic of Cyprus maintains with most of the states in the region are of key importance in the crisis in our immediate neighbourhood, the Middle East. Seeing the tragedy unfolding in Gaza and the resulting humanitarian needs of the civilian population in the region, we have not stood idly by. To be able to back up what you say is not only through words, but also through actions.
As you know, the Republic of Cyprus developed the initiative to create the maritime corridor for the transfer of humanitarian aid from Cyprus to Gaza, the Amalthea project. An initiative which I had the opportunity to present for the first time last October, at the International Conference on Humanitarian Aid to Gaza organised by President Macron in Paris. At the time, many people expressed doubts that such an initiative could take place. But, through methodical work and actions at all levels, we have today managed to make this initiative, with the strong support of partners such as the US, the United Arab Emirates (UAE) and the European Commission, part of a broader effort to provide humanitarian assistance, complementing other routes such as by land through Egypt and by air from Jordan and other countries. Despite the problems created by the condemnable attack on members of the World Central Kitchen humanitarian organisation, I believe that the completion of the port by the United States in Gaza in the very near future will give a boost to the Cypriot initiative. For this reason, there was also a ministerial visit from the UAE yesterday to coordinate and be ready to start providing humanitarian assistance immediately.
I would like to take this opportunity to point out that the motivation for developing the initiative was the need for us to contribute to the provision of humanitarian assistance to partially alleviate the needs of the civilian population in Gaza, taking into account our proximity to the region and the excellent relations we have with all neighbouring states.
Inevitably, however, this initiative highlights the importance and role of Cyprus. It demonstrates, in practice and not in words, that the Republic of Cyprus can play a substantial role and have a say in regional developments, always within the framework of its size and capabilities. Initiatives such as 'Amalthea', therefore, can also change the way the international community approaches our country. Cyprus is not only the Cyprus Problem, but our country can be part of the solution to critical regional problems.
Such a development, that is to say, the shielding and strengthening of the international standing of the Republic of Cyprus as a pillar of stability in the Eastern Mediterranean region and the wider Middle East, can have a positive impact on our efforts to achieve a viable and functional solution to the Cyprus Problem, which is our number one priority. After all, we live in an anarchic international system, and in order for the international community to take an interest in your problems, you must also take an interest, but also prove in practice that you can offer solutions to issues of regional and international interest. This also requires a correct reading and analysis of international developments and an understanding of geostrategic balances. Therefore, strengthening the stability of the image of the Republic of Cyprus and ensuring a functioning and viable state through a solution to the Cyprus problem - a state that can function and take decisions - is important not only for the prosperity and security of the Cypriots, but also for the region at large, as well as for the European Union.
Our country is a modern open economy, with significant potential to further enhance its extroversion and strengthen its position as a regional and international business hub, and in particular as the entry point for investment activities from the countries of the region to Europe. How we are approached reminds me of how the US approached Ireland and how Ireland presented itself as the entry point for investment activities in Europe.
In today's era of globalisation, with all the advantages, disadvantages and challenges it entails and which we are called upon to address, it is imperative that we promote actions that enhance the resilience and competitiveness of our economy.
In this context, we have identified as a clear policy direction the creation of We focus on investing in areas where we have a comparative advantage as a country. We need to be specific. Only through such approaches can we bring in productive investment. We are focused on achieving Vision 2035, which aims to make Cyprus one of the best places in the world to live, work and do business.
At the same time, we are working methodically and very purposefully, taking decisions and actions based on the triptych: fiscal seriousness and responsibility, a stable and sound financial sector and bold reforms. In these first 13 months of governance [THIS TRIPTYCH] has guided all the decisions we have taken. We will continue to take decisions without deviating from these three characteristics.
At the same time, the successive upgrades by the rating agencies, which now place the country in investment grade, are an important development in terms of the performance of the Cypriot economy and a vote of confidence. It is something that we must keep and strengthen further. It is a clear indication of the positive image we have managed to create in terms of the stability and prospects of our country. I assure you that we will continue in the same direction and that we will work methodically to translate this positive development into opportunities and prosperity for all our people.
A prerequisite for the creation of a stable environment is the strengthening of Cyprus' credibility, away from the policies of the past that have cost us. The political will to demonstrate zero tolerance for practices that expose our country internationally is clear and given, something we do not negotiate. In the same vein, we are working to implement a campaign to rebrand our country abroad. Successful rebranding is not just about communication, you have to have substance and support for the rebranding, while at the same time, we are moving forward with substantive reforms to strengthen the country's capacity for oversight and compliance with our international obligations. These reforms include the establishment of the National Sanctions Enforcement Unit, as well as the decision to establish a Single Supervisory Authority for administrative service providers. Of particular importance, with multiple recipients and multiple benefits, is the signing of a Memorandum of Understanding with the FBI to strengthen the Economic Crime Unit. They are already in Cyprus and have started to operate.
Different approaches to the single supervisory authority are fully respected, we are ready to discuss, but this discussion must have a timetable. We are not willing to discuss for the next two years. Within 2024 this Authority must be operational. We do not approach disagreement or public debate as war - it is natural through consultation to get better results - but in no way does consultation mean in the long term. This Authority must be operational within 2024. To rebrand you have to have substance and part of the substance is the Single Supervisory Authority. This will also benefit the business world and, by extension, the economy of the country.
Of great importance is also, I believe, the successful completion of the adoption of the divestment framework. Thanks to the House of Representatives, it is something that has been discussed since 2017, as well as the appointment of the Financial Ombudsman, who with now expanded powers will strengthen out-of-court dispute resolution.
In addition to what I mentioned above and taking advantage of all the advantages we have as a country, we also proceeded to strengthen the already successful Investment Attraction and Talent Attraction Strategy that the previous Government pioneered. [IT IS] an important political decision, with actions concerning the implementation of legislation facilitating strategic investments, the introduction of the Blue Card to attract qualified scientific staff, and the further improvement of the supply of housing and training services. At the same time, we continue to improve the conditions for attracting foreign investment, with significant added value and contribution to the long-term development and prosperity of our country, with particular emphasis on specific sectors. This shows seriousness to all those we are trying to invest in our country, having identified priority countries where we believe there is clearly more potential.
Equally important factor in enhancing the competitiveness of our economy - I discussed this with the new Governor of the Central Bank - is improving access to finance for businesses. To this end, as the Executive, we expect to adopt the action plan for the creation of a National Development Agency in 2024, which, through financial and guarantee instruments, will finance SMEs and investments related specifically to digital and energy transformation. We cannot go to Brussels and ask for a voice and a role only on Cyprus and Turkey. Everything affects the Republic of Cyprus and we must have input into policy-making. This is something we are working on systematically, and, combined with our excellent relations with the United States - it has never been at such a level, we are working to further strengthen them in specific areas and hopefully in 2024 we will have announcements - and other countries with which there is significant potential, allow us to look to the future with a lot of optimism about the prospects of the Cypriot economy and attracting quality investment.
Combined with a prudent economic policy, always on the basis of the triple bottom line. This is a finding, a fact, which contributes to strengthening the resilience and competitiveness of our economy and which allows us, among other things, to pursue a targeted rather than a horizontal social policy. We have a plan, planning and strategy and I am absolutely confident that through and by working with you we will achieve our common goals.
(PM/NZ/AF)
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