Cyprus government focused on digital transformation and innovation, officials say

The priorities of the government are intertwined with the commitment to incorporate technology and digitisation into its policies, stated Undersecretary to the President, Irene Piki, on Tuesday, a sentiment echoed by House Speaker Annita Demetriou.

Piki noted that effective governance is not only about systems and structures but also involves placing people and their needs at the centre of every decision made.

Piki’s comments were delivered during her address at the 6th Digital Agenda Cyprus Summit held at the Municipal Theatre of Nicosia, during a session titled ‘Shaping Tomorrow: The Confluence of Government Priorities and Technology’.

Piki stated that the global economic crisis of 2012, followed by health, geopolitical, and energy crises on a global scale, affected the course of events in Cyprus and created a chain reaction of changes in the daily lives of citizens, primarily impacting their economic situation, and subsequently, their socio-political perceptions.

As a result, she continued, there is a distrust of the political system, reflected in high abstention rates, with the highest recorded in the 2021 parliamentary elections.

She explained that through the Governance Programme, a new Social Contract with citizens has already been implemented, based on a governance plan centred around the human being.

She added that in this plan, the focus of all policies is on the citizen, as well as the modernisation of the state, society, and institutions, stating that the “long-term goal is to rebuild the middle class.”

Piki mentioned that the core principles of the Governance Programme include placing people at the centre, ensuring a sustainable and resilient economy, modern, fair, participatory, and transparent governance, and promoting the green and digital transition.

She also pointed out the current geopolitical developments and noted that inflation is putting pressure on household budgets and eroding their purchasing power.

What is more, she added that high interest rates further exacerbate the situation, making borrowing more expensive and hindering economic growth. Piki stressed that it is imperative to strengthen the resilience and competitiveness of the economy, emphasising that technology can be a catalyst in this direction.

Piki mentioned that the projected GDP growth rate for 2024 is estimated at 2.9 per cent, and the budget for 2024 prioritises strengthening social spending and the implementation of development projects and reforms described in the Recovery and Resilience Plan, while maintaining fiscal discipline.

She continued by saying that it is expected that social expenditure will increase by around 15 per cent in 2024. She added that the fiscal surplus for 2024 is estimated at 2.2 per cent of GDP, with the medium-term goal of reducing public debt to below 60 per cent by the end of 2026.

She emphasised that this first budget marks the beginning of the government’s strategic orientation for the next five years, based on six ambitious but realistic priorities that will guide actions until 2028.

Meanwhile, in her own welcome address, the Speaker of the House of Representatives, Annita Demetriou, mentioned that amidst this turbulent period, it is evident that the digital transformation can bring both hopeful developments and challenges.

Demetriou stated that Cyprus has already recognised the importance of the digital transformation and is committed to embracing digital technologies and innovation to become a society suitable for the future and an economy based on knowledge activated by digital technologies.

She added that, in this context, the Republic of Cyprus is currently implementing the national digital strategy for the period 2020-2025, which broadly aligns with the EU’s digital strategy.

Demetriou also explained that Cyprus is committed to taking the necessary measures to improve the provision of digital public services, and in this regard, the House of Representatives has set both the modernisation of its functions and the enhancement of public participation through digital means as a top priority.

Finally, she stated that Cyprus has taken decisive steps towards digital transformation through the Recovery and Resilience Plan, which introduces measures aimed at creating innovation programmes, and financial schemes, as well as implementing reforms in the education and training system to prepare the youth for the digital future.