President of the Republic of Cyprus, Demetris Christofias, has expressed optimism that the economic crisis will be dealt with successfully, noting that the government will always consult with all social partners before taking any measures which affect them, directly or indirectly.
Addressing the 82nd Annual General Meeting of the Cyprus Chamber of Commerce and Industry (CCCI), President Christofias noted that the world economic crisis has had a negative impact on the Cypriot economy, since it has brought negative growth rate figures, increased unemployment rate and reduced consumption.
The President said that the government has adopted – right at the beginning of the economic crisis – a series of measures in cooperation with the social partners with a view to boost the Cypriot economy.
Those measures, he said, aim to support Cyprus’ financial system, tourism and the construction industry, deal with unemployment and support those in need.
“We must remain vigilant”, he said, adding that more structural measures are needed to control fiscal deficit, increase public income and combat tax evasion.
In addition, he said that the government aims to promote Cyprus as a regional center in the fields of investment and research and referred to the measures taken so far to implement those goals.
Regarding tourism, he described 2009 as a very difficult year for Cyprus, saying that 2010 will be difficult as well.
“For 2010, unfortunately, many difficulties and challenges are foreseen. This year’s reduction in income and arrivals is mainly due to the financial economic crisis. The support measures we have adopted have undoubtedly contributed to a great extent to the control of the falling trend”, he went on to add.
The President referred to a new package of measures to boost the tourist industry, expressing the conviction that they will help tourism to a great extent.
“I am optimistic that the economic crisis will be dealt with successfully until the end. We will continue our sincere cooperation with all social partners and we express the willingness and promise that before taking any measures which affect them directly or indirectly, the government will continue consulting with them”, he said.
Limit the deficit
Addressing the AGM, President of the Cyprus Chamber of Commerce and Industry Manthos Mavrommatis said that the implementation of a three year long National Reconstruction Programme for the economy would be necessary for the economic development of Cyprus.
Mavrommatis said that immediate action is needed to deal with the current world economic crisis, noting that business people in Cyprus are ready to address the challenges of the new era.
He added that CCCI’s proposal for the implementation of a National Reconstruction Programme for the economy between 2010 – 2012 aims to limit fiscal deficit under 3% of GDP and maintain public debt under 60% within three years.
According to Mavrommatis, the Programme gives emphasis on the reduction of the public sector’s costs, on the increase of investments, on the cooperation between public and private sectors for infrastructure projects, as well as on the exploitation of the geographic and other advantages of Cyprus.
Mavrommatis said that a future solution of the political problem in Cyprus would have a positive impact on the economy throughout the island.
