Nicosia:Cyprus may introduce further measures to support households and businesses if necessary, President Nikos Christodoulides stated on Thursday. He emphasized that while pursuing tax and pension reforms, the government would maintain fiscal discipline and increase investment in public services.

According to Cyprus News Agency, the President attributed the country's public surplus to responsible fiscal management, which has enabled a surplus budget for the third consecutive year and created room for reforms. This includes a tax reform, the first in 23 years, aimed at boosting household disposable income and supporting businesses, alongside pension reform intended to increase benefits, particularly for low-income pensioners.

The government has also raised the minimum wage twice, restored the Cost-of-Living Allowance (CoLA) to 100%, and increased investment in healthcare, education, housing, and social welfare. President Christodoulides noted that if needed, further measures would be considered, highlighting that spending on the welfare state had increased by 6% or more in almost every year.

However, the President ruled out engaging in a cycle of pre-election spending pledges and emphasized that fiscal responsibility was essential to sustaining reforms and social support measures. He noted that fiscal policy must consider regional and international developments to safeguard Cyprus's long-term financial stability.