The Minister of Finance, Makis Keravnos, assured on Wednesday of the Government's effort to find permanent solutions to the problems facing society, taking into account the views of society itself, as well as the political forces.
He pointed out that 13,9% of the population in Cyprus is at risk of poverty, with data from 2023, which is the third lowest indicator in the European Union, while underlining that "the Government recognizes the problems that plague our society and does not rest because the statistics comparisons place us perhaps more positively than others."
Specifically, in his speech at the AKEL Economic Forum, entitled "Strong Economy for All Sustainable-Socially Oriented", Mr. Keravnos assured for the continuation of a balanced, human-centered and prudent, fiscally, as he said, economic policy, taking into account the society's demands and the views and suggestions of local political actors and social partners, in an effort to find a more permanent solution.
"There is no reason for complacency. The bet is to maintain the good indicators of our economy in order to be able to continue the targeted social policy," he said.
He added that it is crucial to enrich the economic model of Cyprus.
"The enrichment of our economic model must be governed by a balanced economic development policy, growth must also come from new productive sectors but we must also return our attention to traditional sectors, such as the primary sector, agriculture and animal husbandry, with a focus on the creation of synergies, modern production methods and mainly of an export nature," he explained.
He said that in the next period they will focus their attention on planning and creating conditions that facilitate joint investments by Cypriots and foreign investors, but on investments that create infrastructure, new production units and salaried jobs, encouraging export orientation.
At the same time, he added, the traditional sectors of the economy with the greatest contribution to the GDP should continue to be supported, such as tourism, shipping, retail trade and professional services, to ensure further improvement of their competitiveness.
Mr. Keravnos stated that despite the "bad and heavy legacies" that the Government found in front of it from the 1st month of governance, it is implementing very important social policy measures, which are particularly difficult to find in another European country at this time.
"I accept that the government's measures may not have provided permanent solutions, but permanent solutions are not easy between the European obligations and rules that we have an obligation to observe and between the rapidly evolving geopolitical developments and military conflicts, but neither should we shift the burden to future generations," he said.
At the same time, he said that it is not possible for a small open economy of a member country of the European Union, whose geography has ordered it to be at a strategic point and crossroads of peoples, to operate as if it were in a sterile environment, without receiving direct effects, positive or negative.
He noted that the Eurozone economy is currently in a particularly bad and worrying situation, especially the large countries that are the engines of the European economy and, by extension, social welfare, such as France, Germany, Italy and Spain.
"We, as a full member state of the European Union, have no choice but to implement a prudent, cautious, proactive and balanced economic policy to ensure financial stability and physical survival in a homeland that has been divided by military occupation for 50 years and permanent threat,” he said.
He added that any economic policies must have a strong social character, especially in small countries, in open economies, which can be directly affected by negative developments such as Cyprus.
"The economic policy that our Government plans and implements is a human-centered policy that cares for the vulnerable groups, for the middle class, but it also cares for the next generations that we do not have the legitimacy to burden them with additional debts and additional memorandums", noted.
Citing figures, he said the average poverty rate in the eurozone is 21,4% and even higher in big rich countries like Germany, France, Italy and Spain. Cyprus, he said, is at 13,9% of the population at risk of poverty, with data from 2023, which is the third lowest indicator in the European Union. He also added that the cost of energy in Cyprus is 29,9 cents/Khw, and it is really high.
"The Government recognizes the problems plaguing our society and does not rest because statistical comparisons place us perhaps more positively than others," he noted.
Referring to the international field, he said that the globalized, social and economic policies, not only do not seem to be able to provide solutions, but the many contradictions that characterize them are now palpable.
Among other things, he questioned how the initiative of important countries and the entire European Union for a globalization that would bring about an improvement in the level of people's well-being is consistent with the formation of conditions that lead to new blocs of states, which create tremors on the path to globalization, while also creating potential dangers of confrontation, which may restore balances of terror, of earlier times.
"Obviously, I am referring to the BRICS, with members today of 10 large and important, both economically and geopolitically, states, which founded the New Development Bank and have financed almost 100 projects with an amount of 33 billion dollars and which represent 47,6% of the total global oil production and have a population of over 2,5 billion, about 30% of the world's population. While their total share of the global market exceeds 33%, which is equivalent to 26,5 trillion dollars,” he said.
The Minister congratulated AKEL for the initiative to organize the Forum. As he said, at a time when the political dialogue in our country is spent in spikes, blows below the waist, interspersed with populism and denial, with an absence of fruitful and productive criticism, about the social and economic situation in our country, the Forum for the Economy it presents itself as a small oasis of free dialogue, exchange of views and reflection, between worthy interlocutors.
Source: KYPE
