Cyprus Cabinet approves measures for economic growth

Speaking to the press after the Cabinet meeting, Government Spokesman Stephanos Stephanou said that the measures do not include the construction of casinos.

Spokesman noted that achieving a successful fiscal consolidation, maintaining a favorable taxation system for businesses as well as the promotion of development projects, are the main preconditions for economic growth.

According to Stephanou, the new measures cover all the areas of economic activities and they include, amongst others, the encouragement of employment, the improvement of the framework for foreign investments, the introduction of mechanism for the funding of small businesses, the upgrading of the taxing system for the real estates and the support of the tourist industry and the green growth.

Government Spokesman said that the bills are scheduled to be put before the Parliament by March 2012.

Amid the continuing financial crisis and the weak growth of the Cypriot economy, projected at a mere 0.2% GDP in 2012, the government introduced a series of austerity measures that would enable Cyprus to meet its medium term commitments to the EU and particularly for a budget deficit of 2.8 GDP in 2012 and a zero deficit by 2014.

On August 27, 2011, the Parliament approved the first fiscal consolidation package.

The Cabinet also approved a second fiscal consolidation package, incorporated in the 2012 state budget.

On November 18, 2011, the Finance Minister introduced a third fiscal consolidation package aiming at restoring Cyprus' credibility in the international markets.