Filenews 20 May 2021 - by Eleftheri Paizanou
Eighteen reforms, out of a total of 58 foreseen in the National Recovery Plan, will have to pass through the House as conditions for disbursing €1.2 billion. From the European Recovery and Resilience Fund.
In recent years, party balances in Parliament have been fragile, as major government bills require the crutches of opposition parties. And in the new House the situation will be fluid and perhaps even more fluid, which heightens concern about the smooth promotion of the Recovery Plan.
Yesterday, Finance Minister Konstantinos Petridis, in the context of the presentation of the Recovery Plan, argued that the Plan submitted to the Commission cannot be amended, but left an open window for some amendments to the reforms that will require the approval of the majority of the House. At the same time, he acknowledged that, due to the special political system in Cyprus, it is difficult to adopt some reforms.
However, the biggest bet for the government (current and next) for the successful implementation of the Plan by 2026 and ensuring the disbursement of the resources offered will depend entirely on the timely achievement of the objectives and timetables set for each of the investments and reforms included in the Plan. The government is attempting to tone down, indicating the need to reach consensus and early passage of bills concerning or affecting the implementation of the Plan, either as reform measures incorporated by it into the Plan, as conditions for the implementation of significant investments, or as budgets for the implementation of specific infrastructure projects.
Green bills
The legislative measures required concern three of the five axes of the Plan. For the axis of the rapid transition to a Green Economy, in which €447.6 million will be invested, three reforms related to climate neutrality, energy efficiency and the penetration of renewable energy sources will be put before the legislature. Bills on green taxation and to promote and encourage the use of RES are expected to be tabled in the House later this year. As early as last January, an amending bill on the regulation of the electricity market has been pending in Parliament. At a later stage, a bill to abolish polluting vehicle traffic will be introduced in the House.
Immediate adoption of reforms
A series of bills will also be launched on the axis of strengthening the resilience and competitiveness of the economy, in which €449.3m will be invested. Legislation will relate to incentives to encourage and attract investment and human resources in the fields of research and innovation. The bills will provide tax incentives for investment in human resources in the fields of research and innovation.
The investment law, which must also be passed, has been before the House since December 2019. Legislative proposals for the modernisation of the Companies Act will be submitted at a later date. Particular emphasis is placed on legislation relating to the modernisation of public service, local government and justice.
As of October 2019, the three public service reform bills are in the house drawers. The government wants these bills to be approved by the end of the year. Since March last year, the package of legislation for local government reform has been pending. Bills on justice reform and the creation, within the District Court, of a new special jurisdiction to hear disputes arising from or in relation to credit facilities or securities should also be approved.
The Parliament must immediately approve the legislation for the Independent Anti-Corruption Authority. In the future, (new) legislation on urban reclamation will be prepared. Legislation to ensure fiscal and financial stability will also be promoted in the House. A package of bills is before this House and other pieces of legislation will soon be sent to create a crisis management framework for credit institutions and to assess creditworthiness.
Employment and education
€172.9 million will be invested in the employment, social protection, education and human resources axis. Bills to address skills mismatch between education (secondary and higher) and the labour market will be sent to the House. The operating regulations will be amended in the event of the creation of new guidelines in Middle Education . There will be legislation on the new system for assessing educational work and teachers and on extending free compulsory pre-school education from the age of 4. The laws on Primary and Secondary Education and the Operation of Public Schools of Primary Education will also be amended. The House should give the green light to bills to improve the efficiency of the Department of Labour and Public Employment Services and to create multi-tasking centres for children and childcare centres as well as flexible employment.
For the axes relating to the digital age (€89.4 million) and public health and civil protection - lessons learned from the pandemic (€74.1 million) there is no provision for legislation. In addition to the reforms - and accordingly - 76 concrete investment projects will have to be implemented over the next six years.
The first disbursement of money from the KD is estimated to take place around the end of 2021, while with the approval of the Plan, at the end of July, Cyprus will be given 13% of the total amount.
