President discusses economic issues with Keve, vows further cooperation

President Nikos Christodoulides held a meeting on Tuesday with the administrative council of the Cyprus Chamber of Commerce and Industry (Keve), during which they discussed various matters concerning the economy, society, development, and the business world.

The council expressed concerns about the continuous expansion of the state payroll without a corresponding increase in productivity and efficiency in the public sector, leading to bureaucracy that hampers development.

Urgent measures for digitising public services and tax reform were also mentioned as means to attract and implement significant investments in the country, foster private initiative, and increase people’s average income.

Moreover, the increase in operating costs for businesses due to rises in VAT, the national minimum wage, interest rates, energy costs, and raw materials were also discussed. According to Keve, this surge in costs affects the competitiveness of Cyprus’ products and services. Additionally, the severe shortage of labour further complicates business operations.

The council urged the government to come up with plans for businesses to ensure their sustainability. Furthermore, they advised the government, based on legislation designating it as the state’s official advisor on economic and business matters, to launch an international campaign with the participation of public and private sector officials in selected countries to restore Cyprus’ reputation abroad.

The need to modernise the country’s energy infrastructure and capabilities to reduce energy costs for businesses and households, with a focus on issues concerning the Electricity Authority of Cyprus (EAC), maximising the use of renewable energy sources, as well as providing incentives for energy storage, was also discussed.

Speaking after the meeting, Christodoulides vowed “continuous dialogue with the business community to ensure that government policies reflect real needs and effectively address common challenges.”

“Keve’s success would be the success of the government, with positive outcomes enhancing the country’s business community,” he said.

The President assured that the government fully recognises the pivotal role of the business community in economic development and in realising the government’s Vision 2035.