Nicosia: Finance Minister Makis Keravnos reaffirmed the Government’s commitment to building ‘a more resilient economy, a fairer society and a more sustainable future’ during his speech at AKEL’s 4th Economy Forum in Nicosia, titled ‘Strategy for the Future: Housing, Climate, Energy.’
According to Cyprus News Agency, the Minister addressed criticism regarding the Government’s ability to tackle national challenges, emphasizing a coordinated and methodical approach to transforming difficulties into opportunities. He highlighted Cyprus’ strong fiscal performance amidst global and European economic turbulence, noting the country’s high primary surplus of around 5% and its expected continued economic growth. This growth is anticipated to reduce public debt below the 60% GDP threshold by the end of 2025, a year ahead of schedule.
Keravnos pointed out the international recognition of Cyprus’ economic progress, with the nation returning to the ‘A’ investment grade category after 13 years, marked by nine upgrades in the past two years. This economic strength supports the implementation of key social and development policies, including housing and green transition strategies.
A significant part of the Government’s agenda is ongoing tax reform, offering tax deductions for households and increased capital allowances for businesses to promote energy efficiency. Addressing housing issues, Keravnos stated that this is a broader European challenge, with Cyprus and Italy experiencing the lowest housing price increases in the past decade. Despite this, the demand for affordable housing remains urgent in Cyprus.
The Government’s housing strategy involves increasing supply through planning incentives and schemes like Build to Rent and Renovate and Rent, alongside improving access to housing with initiatives for young people, families, and rural areas. These efforts aim to create over 1,900 new housing units.
On the environmental front, Keravnos stressed the impact of climate and energy challenges on development, underscoring the Government’s alignment with the European Green Deal and 2050 climate-neutrality targets. The National Energy and Climate Plan includes substantial investments in renewable energy, energy upgrades, and water infrastructure improvements.
The Minister also emphasized the need for balancing environmental goals with economic competitiveness, citing the recent EU Council decision to delay the new Emissions Trading System for buildings and road transport by a year.
Concluding his remarks, Keravnos reiterated the Government’s focus on a people-centered, balanced, and prudent economic policy, aiming to avoid burdening future generations with debt or new financial agreements.