Statements by the General Secretary of the C.C. of AKEL S.Stefanou after the meeting with KEBE

 

 24 February 2022, AKEL C.C. Press Office, Nicosia

I would like to thank the President and the executives of the Cyprus Chamber of Commerce & Industry (KEBE) for their hospitality today. We are at a period that I would describe as a critical crossroad for the global economy and Cyprus economy. It is for this very reason that during this period AKEL is seeking, has and will continue to have contacts with the key players of the Cyprus economy. Last week we had a meeting with POVEK, the small and medium-sized enterprises that form the backbone of the Cyprus economy. Today we had a meeting with KEBE and we will subsequently be meeting with the Cyprus Employers & Industrialists Federation (OEB), precisely to discuss the big and important issues of concern to Cypriot society and, by extension, the Cyprus economy and our own country.

As the President of KEBE said, we had a very friendly and creative, I would say, discussion during which we touched on and discussed a number of important issues. I would like to refer in particular to the need, which we as AKEL believe exists, as a country, to work out and formulate a new developmental model which ensures sustainability and depth to the Cyprus economy and at the same time produces wealth which, with proper profit redistribution policies, supports a welfare state that provides a satisfactory standard of living for citizens.

We have agreed that we will discuss this issue at a subsequent meeting with KEBE. We have formulated a framework and will discuss this framework with the protagonists of the economy.

Secondly, we discussed the challenges that lie ahead for the Cyprus economy in view of the fact that the existing conditions in the global market are putting pressure on the Cyprus economy and Cypriot society. I am talking about the increase in the price of essential goods and basic raw materials such as fuel, grain, and by extension the price of electricity, which are affecting and putting a lot of pressure on both society and the economy.

This fact becomes even more pressing bearing in mind what is currently occurring in Ukraine with the war that is underway, which will inevitably affect and indeed is already affecting the price of energy and basic raw materials, which will exacerbate the existing problems even more.

We therefore feel that there is a great need to discuss this issue on two levels. Firstly, to discuss how Cyprus can secure and develop its economy within the current international economic environment and secondly, especially in today’s conditions, against the background of the war in Ukraine and the sanctions imposed by the EU, which will inevitably affect those who receive the sanctions and I am talking about Europe, but especially Cyprus, which has strong economic, trade, tourism and other relations, energy relations with Russia and Ukraine.

There is a need here for the government to move quickly and intensively to study the implications and consequences of the situation and to take those measures so that we can address any consequences to the greatest extent possible.

In this effort, AKEL is ready to contribute with its own knowledge, with its own experience, because this is an issue that needs immediate and urgent attention.

We have discussed other issues too.

We discussed the National Health Scheme (NHS). AKEL has prepared a comprehensive assessment of the first years of implementation of the NHS. We will present this evaluation next week and at the same time put forth AKEL’s proposals on how to provide further support to this great achievement of Cypriot society, maintaining the architecture, philosophy and character of the system, but at the same time addressing any problems, shortcomings and distortions that have occurred in the system. Here we need to take those decisions that will help the NHS, not just to continue to exist based on its present philosophy, but to further strengthen it. As I have said, we have specific proposals that we will certainly discuss with KEBE.

We have discussed many other issues on which we will continue a dialogue. We believe that we can contribute as the big political force that we are. AKEL wants an economy that is sustainable, a developmental model that invests in the comparative advantages of the Cyprus economy, that the necessary balances should be in place, but that there is also an economy that will serve society, its citizens and of course the welfare state.

In response to a journalist’s question as to whether he thinks the government is ready, the General Secretary of AKEL replied:

Normally it should have already been prepared. Of course the war could not have been foreseen, but the government should have been prepared in relation to the situation that exists in the global economy because of the pandemic but also for other reasons such as the phenomena of increases in energy and raw materials that adversely affect the Cyprus economy. Beyond that, there is a great need, as I have said, and the government must study in a speedy manner the consequences of the war that has broken out and move quickly because the economy and developments wait for none. It is the government’s obligation to do so, and as I have said we are ready to contribute and help in this effort.