Filenews 5 March 2022 - by Eleftheria Paizanos
Additional measures to support groups of the population, to mitigate the effects caused by the Russian invasion of Cyprus, are being worked out by the government. According to information from the "F", the ministries have already drawn up a plan to support various economic sectors.
A competent source told "F" that these are measures to support businesses, the agricultural sector and consumers. The measures are likely to be announced in the coming days and will not only concern financial support, but also other assistance to the professional sectors affected.
However, the government will expect similar moves by the European Union towards the Member States, in order to deal with this crisis. As we have been told, in anticipation of European decisions - which may concern a package of multi-level financial assistance, similar to the one given for the pandemic - the Cypriot side is working on its own measures.
At the next meeting of the Council of Ministers, the Minister of Agriculture is expected to submit a specific proposal on the burning issue of the adequacy and accuracy of cereals, while measures to strengthen the tourism sector and vulnerable consumers will follow in the coming period. Something that was also mentioned in his statements yesterday by the Government Spokesman Marios Pelekanos. As he said, on the issue of tourism, some measures are being evaluated that could be taken to mitigate the impact of the loss of Russian and Ukrainian tourists. The new measures that will be taken will be a continuation of the fiscal breath given last Thursday by the Council of Ministers, which decided to reduce excise duties on fuel, as well as to extend the reduction of VAT on electricity.
From Tuesday the 8th of the month until June 1, consumption taxes on gasoline and diesel will be reduced by 8.3 cents per litre, while heating oil will be lower by 5.3 cents. At the same time, until the end of April, households will continue to pay 9% VAT on electricity, while vulnerable consumers until the end of June will pay 5% VAT on EAC bills.
The state apparatus on standby
In order to better coordinate the whole situation, at yesterday's meeting under the President of the Republic it was decided to set up two interministerial committees, which are called to decide in a rapid and effective manner. One interministerial committee will consist of the Ministers of Energy, Transport, Foreign Affairs, Interior, Justice and the Deputy Minister to the President and the second of the Ministers of Energy, Finance, Transport and the Deputy Minister of Shipping.
At yesterday's meeting, ministers and deputy ministers presented the problems that the country will face, from war and sanctions. According to Mr. Pelekanos, a first overall assessment was made of the legal, economic, political and other consequences that will arise, stressing that the President of the Republic gave instructions to keep all stakeholders ready and asked for all aspects to be closely monitored. As he said, the entire mechanism will be alert, stressing that "our country, like all other European countries, will have an impact on various sectors of the economy. However, it was found that with the data so far, the consequences for our country are manageable, and within the framework of the capabilities of the state".
Meanwhile, for his part, the Governor of the Central Bank, Konstantinos Herodotou, informed about the potential impact on the banking sector. As the Government Spokesman said, by today's standards there is no cause for concern. The whole situation will be monitored and evaluated, while the government will be in constant consultation, both with the social partners and with the political forces.
