Nicosia: Chairman of Cyprus Employers and Industrialists Federation (OEV), Giorgos Pantelides, expressed concerns for broader and long-term consequences in the economy, due to the ongoing conflict in the Middle East, and noted the Federation's expectations for a proactive plan on behalf of the government.
According to Cyprus News Agency, Pantelides was speaking to journalists on Thursday afternoon, after a meeting of the Federation's board with Finance Minister, Makis Keravnos, during which they discussed the current situation and the measures taken to tackle the effects of the crisis. Keravnos, who was replying to a question on the matter, stated that it is not particularly important to discuss new measures before witnessing the impact of those recently announced.
Pantelides noted that the situation remains volatile and added that the economic consequences will depend on the intensity and duration of the conflict in the Middle East. He remarked that the resilience of Cyprus's economy provides time to plan actions that will ensure fiscal stability while maintaining economic resilience.
He emphasized the need for proactive planning to manage potential short-term and long-term impacts. Highlighting the tourism industry's need for government support, Pantelides added that citizens and businessmen require equal support and expressed concern over inflation trends linked to energy.
Finance Minister Keravnos reassured that Cyprus's economic resilience permits responsive measures to these challenges. He acknowledged the continued cooperation from OEV members and mentioned that the government will consider the suggestions made during their meeting.
Keravnos announced that the government will subsidize 30% of hotel employees' salaries to enable hotel operations in April. He also mentioned a potential scheme to encourage Cypriot tourists during the Easter holidays, indicating ongoing government monitoring and scheme development.
In response to a journalist's question, Keravnos explained that the measures align with a European Commission directive advising member-states to focus on vulnerable groups or sectors without causing fiscal pressure or encouraging overconsumption of energy resources.