Cyprus Chamber of Commerce and Industry (KEVE) President Manthos Mavrommatis said in an interview with CNA that KEVE continues its information campaign about the euro and it is now trying to ensure that businesses will not exploit consumers through an unjustified increase in prices during the changeover from the Cyprus pound to the euro on January 1, 2008.
Mavrommatis noted that “there is no doubt that Cyprus’ accession to the EU has brought various benefits in all fields, including financial benefits.†As to cooperation with the Turkish Cypriots, he said that economic growth for the Turkish Cypriot community can be fully achieved through trade across the Green Line “which is the legitimate way of conducting trade with the rest of the world.â€
Mavrommatis noted that preparations proceed as planned and KEVE encourages everybody involved to do their work as soon as possible to avoid any problems on the eleventh hour. Since the beginning of the year, KEVE has organised seminars and lectures providing basic information about the euro to members of 1500 enterprises.
“We are now launching a big campaign to convince enterprises to register with the Fair Pricing Code†which commits them to carry out the changeover to the euro fairly and to seek no advantage.
Mavrommatis explained that subscribers to this Code will be entitled to display a logo, informing consumers that they have agreed to undertake the commitments under this Code.
He also noted that Euro-Observatories will investigate possible infringement of the provisions of the law governing the introduction of the euro and of the Fair Pricing Code, either ex officio or following a complaint.
Furthermore he said that the Euro-Observatories will monitor the whole process of the adoption of the euro in Cyprus, the legality of transactions and the transparency of professional practices regarding the adoption of the euro.
He stressed that it is a great challenge for Cypriots to learn to estimate the value of consumer goods and other products in euros.
Cooperation with the Turkish Cypriots
Mavrommatis said that KEVE issues certificates for the sale of Greek Cypriot products to Turkish Cypriots, in the framework of the implementation of the EU Green Line regulation. He said KEVE was trying to promote implementation of the regulation and overcome any problems in establishing financial links between Greek Cypriots and Turkish Cypriots to contribute positively to the rapprochement between the two communities.
He welcomed the government’s new plans for joint ventures between Greek and Turkish Cypriots, giving priority to trade through the Green Line.
As regards the so-called direct trade between the EU and the Turkish occupied areas, pursued by the Turkish Cypriot regime, he said economic development of the Turkish Cypriots is facilitated through trade via the Green Line, underlining that there are no financial reasons to promote direct trade.
Furthermore he said that thousands of Turkish Cypriots cross the Green Line and are employed in the government-controlled areas of the Republic, something which he welcomed.
The economy after accession
On the local economy three years after accession to the EU, Mavrommatis said “there is no doubt that Cyprus’ accession to the EU has a lot of benefits in all sectors, including the financial one.â€
He said that EU funding must be used to the maximum to help deal with the innate weaknesses of the economy and to boost growth.
“We look forward to good use of EU funds, in the financial period 2007-2010, for the benefit of local business and the economy in general,†he told CNA.
Mavrommatis indicated that it was up to the competent authorities to apply for and absorb to the maximum EU structural funds.
Tourism
Asked about the reduction in tourist arrivals in Cyprus, Mavrommatis said there is no doubt that Cyprus faces problems in this sector, noting that local chambers are working very hard in each town to implement the tourism strategy, as this has been set out by the Cyprus Tourism Organisation.
He underlined that need to enhance efforts to attract tourism, through important infrastructure projects such as marines, golf course, a casino and the development of special forms of tourism as agro-tourism.
Real Estate
On the increase in the price of real estate in Cyprus, Mavrommatis said that ”this is something that worries KEVE because the supply is limited but the demand is big, especially after accession, more and more EU nationals seem to be interested in investing in real estate on the island.â€
He noted that this problem has both an economic and a social impact, which has to be addressed.
On company takeovers and mergers worldwide in contrast with what is happening in this respect in Cyprus, Mavrommatis described as a disadvantage the fact that the majority of businesses here are small family enterprises.
Concluding, he advocated takeovers and mergers as part of an effort to render local business more competitive.
