FROM THE CYPRUS GOV
Lots of financial help here via grants and subsides this Winter. Admin
Announcements
Compatriots,
We are going through a critical period characterized by geopolitical challenges, uncertainty and unprecedented realignments that affect us all. The coronavirus pandemic, the war in Ukraine and the new conflagration in our own neighborhood prove how volatile the world is and at the same time underline the need for strong reflexes on the part of states to effectively deal with multi-level crises.
The setting that is taking shape causes various effects at various levels and we are called upon to manage, always with responsibility and rationality, a particularly complex state of affairs, especially in the energy sector and more broadly in the economy.
As a Government, we remain committed to and work for the safety and well-being of citizens, maintaining the outlook for our country, as well as stability in the wider Eastern Mediterranean region.
Ladies and gentlemen,
The Cypriot economy remains resilient and strong, thanks to prudent fiscal policy. The recent double upgrade and its classification to investment grade by Moody's, 12 years later, offers opportunities to attract quality investments and, by extension, the creation of new jobs. Given our commitment to ensuring the conditions for economic development, I want to reiterate that for the Government, fiscal responsibility, a healthy financial sector and lasting and bold reforms define the context of the decisions we make.
Only through such responsible approaches, away from populism and wishful thinking, is development, progress, security and, by extension, the ability of the Government to exercise effective and targeted social policy ensured.
Friends,
I know all too well the problems and challenges you face, I know the pressure that households and businesses are under.
It was precisely within this framework that, immediately after assuming government, we took a series of measures to address the difficulties and challenges faced by the citizens.
By way of example, I mention the renewal of the ATA agreement, the increase in welfare allowances, the increase in the low-pensioner allowance, the reduction of the extraordinary defense contribution on the collected tax, the increase in the allowance for mothers with many children, the application of the zero rate in several items basic necessities, the ktiZO plan and several others.
Today, evaluating the data under formation, we announce a new package of targeted measures, immediate and medium-term, to support the Cypriot society.
The immediate measures concern:
1. Gradual electricity subsidy from November 1, 2023 to February 29, 2024, for residential, commercial and industrial consumers, while for vulnerable consumers the subsidy covers 100% of the electricity price increase.
2. Reduction of the motor fuel excise tax by 8.33 cents per liter for the months of November 2023 to February 2024.
3. Reduction of consumption tax on heating oil by 6.39 cents per liter from December 2023 until March 2024.
4. Subsidy of 2% of the interest rate on housing loans contracted from January 1, 2022 to December 31, 2023 for the purchase and construction of a first home, for families with an annual income of €50,000.
5. Zero VAT rate on meat and vegetables from December 1, 2023 until the end of May 2024.
6. Rent subsidy for EEE recipients with a one-off amount of €300 to those who receive a rent or mortgage interest subsidy. The amount increases to €500 for beneficiaries with severe disabilities.
7. One-off aid to the recipients of the disabled traffic allowance in the amount of €120.
8. Extension of the child benefit for many children, covering the children until the completion of their undergraduate studies to obtain a first degree.
9. Increase by 5% of the child benefit.
Ladies and gentlemen,
Medium-term measures aim to find permanent and sustainable solutions to drastically reduce energy costs and ensure affordable housing. Specifically:
1. Installation of photovoltaics without the payment of capital in small and medium-sized houses, with the granting of an initial sponsorship of €1,000 and repayment of the remaining amount in installments through the electricity bill.
2. Increasing the power of self-production and self-consumption of electricity in businesses through photovoltaics.
As far as housing policy is concerned, an issue that particularly concerns the new generation of our country, through a holistic approach we are proceeding for the first time with a specific plan as follows:
1. Plan "Renovate - Rent" for inclusion of empty and inactive houses in the rental market.
2. Reinforcement of existing urban planning incentives for the construction of residential units, part of which will be granted at an affordable rent.
3. "Build and Rent" plan on private land with the use of an additional building factor and tax incentives for the construction and rental of residential units at affordable prices.
4. Social Housing through the construction of residential units on specific plots of land.
5. Concession of plots in the countryside for families with low incomes.
6. Housing subsidy for young couples or young people up to 41 years of age with a one-off grant of €20,000 to €50,000, based on criteria.
Details of the 17 Measures I mentioned above will be made public today, while in the following days the relevant ministers will make detailed presentations.
Friends,
The measures I announced today are fully costed and within the State's financial capabilities. I want to repeat once again that the driving force behind our actions is the strengthening of the social protection network of our vulnerable compatriots and the support of the middle class, in accordance with my Social Contract with the Cypriot people.
I thank the political forces and the social partners who submitted, from time to time, proposals to deal with the current situation.
In particular, however, I feel the need to thank all of you, each citizen individually, because it is thanks to your own efforts that the Cypriot economy is on a stable development path and allows us to make substantial interventions to support households and businesses.
We continue the great effort with specific goals, with a plan and with determination. Above all, with responsibility, persistence and a human-centered approach.
