Minister of Finance Charilaos Stavrakis said on Thursday that, despite the global financial crisis, Cyprus still has an advantage over Europe concerning the potential growth rate of its economy.
He added that the challenge now was to solve the structural and fiscal problems of the Cypriot economy, in order to maintain this ''potential advantage.''
Speaking after a meeting with political party representatives and social partners, as well as government officers, to discuss the European Commission document on the future of the Lisbon Strategy, Stavrakis said ''the potential rate of growth in Cyprus was historically around 4% and, due to the global crisis and the recession, it has dropped to 3-3.5%.''
He pointed out that ''the respective rate of the European economy is 2% and has now dropped to 1-1.5%.''
''This recession has negative effects on the potential future growth rate of all European countries. The Lisbon Strategy, as it is being examined at the moment and being readjusted, aims at helping all countries, including Cyprus, to make structural changes that will increase the future potential growth rate to previous levels,'' Stavrakis said.
He also noted that emphasis is being given to green energy, the social dimension of reforms and the better implementation of research and innovation.
Stavrakis said the public dialogue, which he launched on Thursday, and is coordinated by the Planning Bureau, aims ''to hear the positions of the parties and the social partners, and to the greatest extent find a common denominator in order to send the European Commission a document with the greatest possible consent, which will be to the benefit of the Cypriot economy and society.''
Referring to the European Commission's document, he said ''we have before us a document with which, in general terms, we absolutely agree with,'' noting that the Commission's paper had three aspects.
He said the first axis had to do with knowledge, noting that the key for Cyprus was ''how to depend more on practical research and research that could produce immediate positive results for the economy, rather that theoretical research.''
Stavrakis said the second axis was social and referred to the creation of a new economy, in which ''the citizens, without social exclusions, would have all possibilities of access,'' adding that the third axis focused on ''the green economy.''
The Minister recalled that the government has already presented a comprehensive package of proposals, which could solve the structural problems of the Cypriot economy, increase the growth rate and reduce unemployment, adding that some of the measures need more processing and approval by the House of Representatives.
Stavrakis assure that efforts would continue to find consensus with the parties and the social partners, and that the Ministry of Finance would be doing everything it deemed right to solve structural problems that have been to the detriment of society for many years.
