Christodoulides says Cyprus is considering further support measures

Limassol, Cyprus. President Nikos Christodoulides said on Tuesday that the government was considering additional support beyond the aid exceeding €1 billion that it had already announced and was implementing. Some of the measures needed would require approval from the European Commission, he said.

Prices and domestic support

Speaking on arrival at the Forbes economic summit in Limassol, Christodoulides said the government was tracking prices every day and stood ready to respond. When asked whether Brussels could permit zero taxation on oil, he declined to say whether Cyprus had submitted such a request.

The president outlined three strands of the government’s response: immediate assistance, including a zero VAT rate for several products; tax reform aimed at increasing disposable income; and preparations at the Vassilikos power station for natural gas to arrive.

He attributed Cyprus’s capacity to provide support to its responsible management of public finances and a budget surplus for the third consecutive year. He also said the government had introduced measures that others had failed to take.

Proposals at EU level

Christodoulides said Cyprus had presented its views on energy prices to the council of finance ministers (Ecofin) and discussed the issue with leaders attending the Mediterranean summit in Croatia (Med9).

He said Cyprus would submit specific proposals during the next two days to the European Council in Brussels.

Finance Minister Makis Keravnos told Ecofin in Luxembourg last Friday that Cyprus needed more flexibility under EU fiscal rules to help governments assist households and businesses affected by inflation and the energy crisis. He said any changes must preserve the sustainability of public finances.