Filenews 14 November 2021 - by Eleftheria Paizanos
The government may have put the two feet of parliament in one shoe, in relation to the implementation of the prerequisites for the Recovery Fund, so that pending bills can be passed by the end of the year, however, due to the indigence that exists during the discussion of some bills, it has somewhat differentiated the milestones to which it had initially committed itself to the Commission.
The government side, seeing that it does not get the beans in the Parliament and not to miss the "train" for the second instalment, in February 2022, amounting to € 85 million. from the Recovery Fund, took out of the new list of prerequisites to be approved by the end of the year, the reform of Justice and Local Government. In this way, the government is gaining a few more months, so that there will be convergences and overcome the obstacles identified by the various participants during the discussion of the package of legislations in Parliament.
A competent source told "F" that there is not enough time for the bills concerning the reform of local government and the judiciary. The latest that will have to be approved will be in the first quarter of 2022, otherwise then the country enters a red zone, in terms of 85 million. that has to get from the Recovery Fund.
As the General Director of the Directorate General for European Programmes, Coordination and Development, Theodos Tsiolas, told "F", these reforms are a necessity and the sooner the bills are approved, the faster and smoother the procedures for their implementation will be able to run.
What happens after the adoption of the bills
With the postponement of the December 2021 municipal elections, the government got a few months of extension. Specifically, the reform of local government can be implemented no later than May - June 2024, but there are many actions that need to be implemented beforehand, such as of course the passage of bills, the promotion of new structures, new collective bodies, the union of municipalities and municipalities-communities and various services.
In order for the municipal mergers to take part, the government bills must of course be approved, which is why the time limits are still limited, which is also acknowledged by the parliamentary Committee on the Interior. It is worth noting that the original list that the Ministry of Finance had forwarded to the Parliament stated that the bills on Communities and Municipalities should be approved in December 2021, while the bill on Provincial Clusters should be voted on in June 2024. Although there are many and serious disagreements between stakeholders involved, the Interior Committee is still optimistic that the bills will be in plenary for the final vote late this year or later in early January.
In relation to justice reform, in this case too, the package of pieces of legislation should be adopted by February-March 2022 at the latest, as the government has committed itself to the European Commission to reduce, as soon as possible, the backlog of cases pending in the courts.
Next month, the government will submit to the Commission an Action Plan, which will include the package of legislation on justice reform, with the aim of implementing the Republic's commitment to reduce delayed cases by 20% by June 2024 and by 40% by June 2026.
According to Mr Tsiolas, in order to achieve the objective of reducing the number of delayed cases in the courts, the justice reform bills will have to be approved beforehand. As "F" is informed, despite the small movement of the timetables, the data for the Parliamentary Committees of Legal affairs and Interior do not change and they will continue the discussion of the bills normally, with the aim of completing it as soon as possible. Representatives of the parties, who participate in the Technocratic Committee of parliamentary parties, have already been informed about the new plans.
The reform of the Public Service
After the new data, the disbursement of € 85 million. will probably determine the bills for the reform of the Public Service, as well as the bills for the establishment of the Anti-Corruption Authority and for the protection of whistleblowers, as the majority of the remaining objectives are at an advanced stage and there is no need for the intervention of the Parliament.
In the coming days, there are expected to be intense behind-the-scenes consultations to find a commonly accepted formula for interdepartmental promotions, which threaten to blow up public service reform. PASYDY strongly disagrees with the institution of interdepartmental promotion, arguing that if it is implemented it will affect the operation of the public service. On the other hand, the finance ministry, while adhering to the 2015 agreement, is open to dialogue. After all, that is why, last Friday, all the directors-general of the ministries were invited to the ministry of finance, in an attempt to find solutions. Also irrelevant does not seem to be the postponement of the discussion of the bills during tomorrow's session of the House Finance Committee, as originally planned. The debate was postponed until Monday the 22nd of the month, in the hope that the ministry of finance and PASYDY would find by then a common component on the issue of reform.
What has been implemented so far
In total there are 14 milestones to be implemented by the end of the year, which include six legislative regulations, 2 reforms without regulation, five investments and the functioning of the information monitoring system to be developed. So far, according to the new planning that have been made, three objectives have been implemented concerning the approval of the bill for the independence of the Transmission System Operator from the EAC, the law has already been published in the Official Gazette of the Republic since last October. Also, the goal of promoting RES and promoting measures for energy efficiency in homes was achieved. It is worth noting that last year the project was announced. Moreover, last July, the goal of strengthening the circular economy was realized by decision of the Council of Ministers.
Moreover, apart from the reform of the public service and the legislation related to the fight against corruption, the other prerequisites to be implemented by December 31, 2021 are:
- Strengthening the legal framework to address non-performing loans. The discussion of the bills was completed in the Finance Committee and on the 25th of the month they will be brought to the Plenary. The bills concern credit acquiring companies and credit servicers, with the aim of improving the working environment for the management of non-performing loans.
- Creation of a regulatory framework for energy storage. The amendment of the transmission and distribution rules and the rules of the electricity market were published on CERA's website. The amendment of the Transmission and Distribution Rules and the Electricity Market Rules are under preparation.
- E-skills action plan – implementation of specific actions. The draft proposal is expected to be ready later this month. A consultation will follow and then it will be submitted to the Council of Ministers for approval.
- Promotion of energy efficiency investments in small and medium-sized enterprises, municipalities, communities and the wider public sector. A call for proposals was published. The Plan is scheduled to be announced at the end of 2021, beginning of 2022.
- Encouraging the use of RES and energy saving measures in public and local authorities, as well as in non-governmental organisations, and supporting local communities in tackling and adapting to climate change. The Plan will be launched at the end of the year, early next year.
- Strengthening of existing isotopic databases of Cypriot food and beverages, with the aim of ensuring the identity of products, through the development of a platform, using Blockchain technology. Last August the contract for the purchase and installation of the relevant equipment was concluded, which is expected to be installed within the month.
- Upgrading the infrastructure of the courts. The project is expected to be completed within the month or next.
- Digital Transformation of Central Government. Last September, the contract for the development of the information monitoring system was signed, while the basic operation of the system is expected to be ready by the end of the year. In the meantime, contracts have also been signed with the providers for the digital upgrading of the Department of Road Transport, the Deputy Ministry of Shipping, the Ministry of Foreign Affairs, the General Directorate of European Programmes, Coordination and Development and the Department of Urban Planning.
Another 18 milestones by June 2022
After the government overcomes the first stumbling block, on December 31, 2021, work will begin to reach the 18 milestones by the end of June 2022, to receive the third tranche of €85 million. in August 2022. It is worth noting that five of the objectives need to be regulated. By 30 June 2022, the following objectives should be achieved, which will first pass through Parliament:
- Electronic cloud computing platform to improve trade and information symmetry in the supply chain of fresh products. Entry into force of a new law to tackle unfair trading practices in transactions in the local market of fresh products, such as unilateral and retroactive amendments to contracts, last-minute cancellations, payment deadlines of more than 30 days, payments for products that have been damaged or not sold and other actions affecting those involved in the production and distribution chain of agricultural products.
- Incentives for investment and human capital in research and innovation. A law establishing a tax exemption for corporate investors (legal entities) investing in innovative enterprises enters into force. The EU is examining whether there are any state aid issues.
- Facilitating Strategic Investments. Implementation of the law on the support of strategic investments in Cyprus, which will include the following elements: harmonisation of the licensing procedures for strategic investments, project manager for each project, timely issuance of building permits. The bill was originally tabled in 2019 and a new bill with changes is expected to be tabled soon.
- Launch of the law establishing the independent anti-corruption authority.
- Strengthening the national regulatory authority (GERGET). Implementation of secondary legislation and initiation of research.
| Long road, with conditions and timetables, until the end of '22 |
There will be a long way to go in the second half of 2022 for the government, as it will have to implement 30 prerequisites, of which 4 are for legislation. The prerequisites concern the fourth tranche from the Recovery Fund, amounting to €115 million, which in order for the country to receive it in February 2023, must first meet the targets by 31 December 2022. The landmark legislative regulations for which the approval of the Parliament will be required are:
- Approval - implementation of the law on urban land consolidation.
- Amendment of the Law on the sale of immovable property (special enforcement). This is the implementation of the strategy to address deficiencies in the title deed system.
-Implementation of laws to address tax planning. Originally, these bills were included in this year's prerequisites. Already, the House Finance Committee has completed the discussion of the bills and it seems that they will soon be taken to the Plenary for the vote.
- Extension of free compulsory pre-primary education from the age of four. Implementation of the law on the extension of free compulsory pre-primary education from the age of four and the establishment of a system of scholarships by the Council of Ministers.
Independent Anti-Corruption Authority
On the other hand, the passage of the bill on whistleblowers requires the prior approval of the bill for the operation of the Independent Anti-Corruption Authority, which is being examined in the Parliamentary Committee of Lawyers.
The latest bill is being debated alongside bills. It should be noted that the anti-corruption authority is also linked to the bill on "lobbyists", which is before the Committee on Institutions. The MPs of the Committee on Institutions are waiting for the final text of the anti-corruption authority bill to be drafted and then lead the lobby bill to plenary.
