What does the new Chairman of the Central Bank fear for our inclusion in the Support Mechanism
In an interview, the new Governor does not hide his great concern that the inclusion of Cyprus in the Support Mechanism will affect the tax regime that has so far allowed the development of the services sector and especially offshore companies.
Mr. Dimitriadis underlines that "in case it is deemed necessary for our country to resort to the Support Mechanism in order to support-recapitalize a specific bank, we will try with the Ministry of Finance that any conditions are set not to affect the corporate tax regime foreign interests operating in Cyprus ".
He also stressed the need for fiscal consolidation and compliance with Cyprus' commitments to the European Union.
The Governor is reassuring that the extreme scenario of Greece's exit from the euro will be avoided, regardless of the result of the parliamentary elections in Greece.
The concerns of the former president of the Federation of Employers and Industrialists, Andrea Pitta, are moving in the same direction as the governor of the Central Bank, who warns in an interview that: Cyprus will lose a comparative advantage . By joining the support mechanism this advantage, for which a "war" is being waged in order to maintain it, will be lost.
Our economy, he estimates, will no longer be competitive and companies will have to pay high taxes.
From the point of view of the employees, the Secretary General of the SEC sees things. Nikos Mousseos emphasizes that the biggest risk is the reduction of earnings and social benefits.
He shares the concerns about the corporate tax increase, a development that he estimates will have a very negative impact on the services sector and especially offshore companies.
Source: FILELEFTHEROS
