“Golden passports and the economy” – Article by Valentinos Fakontis – AKEL MP for the Pafos district

 

Saturday 27 August 2022, “Haravgi” newspaper

The “golden passports” scandal is back in the news. With the new revelations of the Auditor General, the serious consequences on the economy, among other things, can be seen. And it is not only the loss in VAT amounting to 200 million euros and the loss from the non-collection of fees amounting to 25 million. It is also the EUR 1.1 billion worth of contracts that were cancelled after the passports were granted, while EUR 3.9 billion worth of property contracts were never transferred.

The main thing is the impact on the real economy. The government’s Cyprus Invest Programme (CIP) has certainly contributed to the economy. However, the criteria formulated by the Anastasiades-DISY government and the way the CIP was implemented also created many problems. We recall that a 2019 Central Bank Report documented the “accelerating increase” in property prices in Limassol, which has already led to a “huge increase in rents”, noting that these are “most likely largely related to the government’s plan for exceptional granting of citizenships to investors”. A similar conclusion was reached by a report released by the Fiscal Council, which even spoke of risks of fiscal derailment.

Nobel Prize-winning economist Christoforos Pissarides spoke to “Astra” radio station (24/8) about the Cyprus Investment Programme with regards the granting of citizenships. He said, among other things:

• The CIP was never a developmental model for Cyprus.
• The construction of towers/skyscrapers in Limassol and selling them to people who don’t even use them to bring us money does not constitute a developmental model.
• The cost to political life is enormous, because citizens no longer have any trust.
• Despite the fact that we are a state of impunity, there should be a developmental programme to create jobs.

The academic Pambos Papageorgiou, a member of the Cyprus Economic and Competitiveness Council, expressed similar views, even referring to a report prepared for the Ministry of Finance.

The CIP, as designed and implemented during the 10 years of THE Anastasiades-DISY government, did not serve the general interest of Cyprus, but the interest of a narrow circle of interests, causing damage to the country.

The Anastasiades government misled public opinion and, as the Auditor General points out, misled Parliament too. These issues will be discussed in the coming days in Parliament for the exercise of parliamentary scrutiny. The findings and reports should not be left in drawers.

Cyprus needs change and a different course for its future. The foundations of our economy must be based on solid foundations, because only in this way will stable and long-term growth be ensured. With a clear orientation towards sustainable, balanced, socially oriented growth, with quality jobs and a fairer distribution of the country’s wealth.