Finance Minister calls for increased effort to meet competitiveness

Cyprus will have to intensify efforts to improve its competitiveness globally and within Europe in particular, after it joins the eurozone in January next year, Finance Minister Michalis Sarris said.
He was commenting on the Global Competitiveness Report 2007-2008, released by the World Economic Forum, according to which Cyprus ranks 55th among 131 countries.
According to the report, Cyprus dropped by three positions compared to last year’s ranking among 125 countries, included in last year’s report, while the island’s economy scored the lowest rate out of 20 EU countries.
”A country’s competitiveness depends on what that country is doing as well as on what others are doing,” Sarris pointed out, noting that other countries, especially in Asia and Latin America, introduce greater flexibility, focus on technology and productivity and restrain salaries in line with productivity.
All these, he explained, contribute to rendering a country more competitive. He said the government has created a positive framework through stability and encouragement of private investment, which should yield results. ”There is no doubt that now, as we join the euro area, with less opportunities to remain competitive, we shall intensify our efforts with a view to becoming more competitive,” he added.
Sarris said it was worrying to see a continuing hike in the price of oil and called on everybody to save energy. He added that both the Cypriot and the global economy have shown great flexibility in dealing successfully with ”these dramatic price increase.”
”We believe the Cypriot economy will tackle this phenomenon as best as possible and there is no reason for grave concern,” he concluded.
The Minister presented to the press a revised upgraded version of the government website on the euro. The site is more user friendly and provides far more information than in the past.