Cypriot MP Charalambos Pittokopitis, defended the right of Member States of the European Union, especially small economies such as Cyprus, which are particularly affected by the economic crisis and the decision for Brexit, to preserve their flexibility to determine their tax status, in his intervention in the OSCE Parliamentary Assembly’s 2016 Autumn Meeting in Skopje.
According to an official announcement, in his intervention in the debate on “Good governance as a basis for promoting economic growth in the OSCE region,” Pittokopitis said that good governance is the cornerstone for well functioning democracies.
Noting the interdependence between political stability and economic growth, Pittokopitis highlighted the importance of the rule of law as a key factor in achieving sustainable economic growth, which as he said, should be reflected in the independent regulatory institutions.
Pittokopitis said that the failure of governance of the global financial system led to the global financial crisis and to austerity in Europe. However, as he noted, the strict austerity failed to boost growth or reduce poverty and social inequality, leading to further alienation of citizens from the institutions and sharpening of populism, intolerance and discrimination, especially against immigrants.
Referring to Cyprus, Pittokopitis said the country was under supervision after its exit from the Economic Adjustment Programme and referred to Cyprus` unprecedented rescue of the Cypriot banking system by own means imposed by decision of the Troika, that resulted in the destruction of the country`s economic model, and painful consequences for the Cypriot society.
The MP noted that, while the country returned to growth in 2015 and regained the confidence of markets, credit ratings remain below investment grade.