TELEVISED MESSAGE BY THE PRESIDWENT ON THE ASSESSMENT OF THE FIRST YEAR OF GOVERNMENT

 

Televised message by the President of the Republic, Mr Nikos Christodoulides, on the assessment of the first year of the Government

Fellow compatriots, Dear friends, With the completion of our first year of governance, I stand before you to present what we have implemented. After all, the transparency and accountability that I promised are at the core of our philosophy. Our design for the Cyprus we want, our political orientation is based on specific and targeted priorities: Improving of the daily life of every citizen; Building a strong and resilient economy; Laying foundations for a better tomorrow by investing in education and health; Accelerating the green transition; Modernising and reorganising the state; and Strengthening our position as a strong partner in the European Union (EU) and the wider region. Ladies and Gentlemen, At the core of our priorities, of course, remains our national issue. In the upcoming days, the personal envoy of the United Nations (UN) Secretary-General will return to Cyprus for contacts. The appointment of Ms Holguín and the beginning of a new effort to resume talks were the result of our own persistent efforts and initiatives. Our mobilisation towards the UN, the EU and all important international actors, always in cooperation with the Greek Government, is yielding results. Everyone recognises our readiness and our political will to come to the negotiating table with sincerity and determination, with the sole objective of resolving the Cyprus problem on the basis of the Bizonal Bicommunal Federation, making use of the negotiated acquis to date. Our target is clear and sincere. We demand the liberation and reunification of our homeland through a solution that ensures basic human rights for all legal citizens of our country, without occupying troops and invasive rights. Without disregarding the difficulties and challenges as a result of the Turkish stance, we approach Ms Holguín’s mission with the utmost seriousness and as a window of opportunity for the resumption of meaningful talks. Our efforts for a more active involvement of the European Union, taking into account the full range of Euro-Turkish relations, are in this context. Through the resolution of the Cyprus problem, such a development can lead us to a mutually beneficial state of affairs. Dear friends, Beyond the Cyprus problem, which is a vital issue that touches the future of our country, ensuring a strong and resilient economy is non-negotiable for our government. As soon as we assumed office, we were called upon to manage a critically unpleasant development with the sanctions from the United States and Britain. From the very first moment, we made clear the importance we attach to the reputation and credibility of our country, demonstrating our determination for zero tolerance in action. In this context, I did not hesitate to ask foreign authorities to assist in the investigations in order to complete the relevant procedures as quickly as possible. At the same time, we are resolutely proceeding with the establishment of a National Unit for the Implementation of Sanctions as well as the very important reform to set up a Single Supervisory Authority for administrative service providers. We want to make sure that we put behind us once and for all the practices that have exposed our country. ONLY in this way will we get rid of any shadows which affect the credibility of our Cyprus, and which is, inter alia, an obstacle to attracting quality investment and creating new jobs. Ladies and Gentlemen, Despite the complex challenges it faces due to the unstable geopolitical environment, the Cypriot economy is on a steady path with positive growth prospects. According to the latest EU estimates, the Cypriot economy is expected to record the second highest growth rate for 2024. The upgrade of our economy to the investment grade by all rating agencies is a vote of confidence and a reward for the prudent policies we follow and is based on the triptych: fiscal responsibility, stable financial system and continuous reforms. During the first year of our governance, we achieved important milestones, such as: The completion of the prerequisites for the 2nd and 3rd payment requests of the Recovery and Resilience Plan, with an absorption of funds amounting to 152 million euros; The adoption of an improved legislative framework for divestments which was pending since 2017, as well as the extension of the powers of the Financial Commissioner, strengthening the protection net for vulnerable borrowers; The implementation of the “Rent vs Instalment” Scheme; We financially supported the Solidarity Fund for depositors who suffered a 'haircut' by 50 million euros and activated, as promised, the platform for submitting online claims for compensation; Following intensive negotiations with the EU, the VAT reduction on the first residence has been voted; We set up a special Equity Fund to finance start-up companies to boost innovation; We updated the Investment and Talent Attraction Strategy with new important incentives related to housing, education and mobility within the EU; We accelerated the processing of employment applications of foreigners from third countries; We laid the foundations for the country’s Tax Transformation with the aim of enhancing the competitiveness of businesses and achieving the strategic goals for a green and digital transition. Our first surplus budget is another important milestone and reaffirms our determination to achieve the goal of a strong and resilient economy. Fellow compatriots, The economic responsibility of our governance is a prerequisite for the implementation of a targeted social policy, thereby also addressing the high cost of living. A few days ago, we announced a second support package for households and businesses amounting to 60 million euros, following the measures that came into effect last October amounting to 196 million euros. Far from populist approaches which jeopardise the fiscal stability of our country, in this first year of our governance, we have proceeded with responsibility and in addition to the two support packages, we have implemented other important policies that benefit, in particular, the middle class and businesses. In particular, we proceeded with determination to: the increase of maternity leave to 22 weeks; the payment of the statutory pension from the first month; the imposition of zero or reduced VAT on basic products; the increase of rent allowance for the displaced persons and victims; the payment of care allowance to the relatives of the fallen and missing persons; the increase of the honorary allowance to mothers of multimember families; the streamlining of the Minimum Guaranteed Income; the increase of the minimum pension by 5%; the faster approval of requests for the payment of benefits; the adoption of the legislation on e-kalathi. At the same time, through dialogue with social partners: We increased of the national minimum wage to 1,000 euros, and We achieved the agreement for the cost-of-living adjustment (CoLA), which benefits 180,000 employees in the private and public sectors. Dear friends, We have made significant interventions with determination and commitment to improve the daily lives of citizens. These interventions include our decision on the new housing policy for affordable housing, the most substantial to ever be announced, which aspires to offer solutions to hundreds of our fellow citizens, especially the younger generation, through specific incentives, such as:  the “Renovate – Rent” plan; the “Built to Rent” plan on private land to offer housing at affordable rent prices; the grants to young couples and young people for the acquisition of their first residence; the Interest Rate Subsidy Scheme for the purchase and construction of the first residence; the Allocation of Plots to Families Scheme; the Revised Urban Development Incentives to offer housing at affordable prices; and the expansion and upgrading of the Urban Development Incentives Plan for the recovery of entrepreneurship. At the same time, we decided to implement a series of measures to reduce bureaucracy, particularly in the licensing of residential developments area. In relation to the refugees, one of our first actions was to promote solutions to unsuitable refugee housing via the €110 million “ktiZo” plan. Of particular importance in our refugee policy were also the decisions for streamlining and full transparency in the management of Turkish Cypriot properties, as well as the significant improvement and enrichment of the plans of the Central Agency for Equal Distribution of Burdens, which I announced a few days ago. Some of the important actions implemented to improve the daily life of citizens also include: the Neighbourhood Social Worker, bringing the social services of the State closer to the citizen; the operation of the 1450 call centre for services relating to benefits; the tabling of a draft law establishing rules for the management and operation of apartment buildings; the Pame Express service to alleviate traffic congestion, which resulted in the removal of approximately 4000 vehicles per day from the Lefkosia road network. At the same time, an action of utmost importance during the first year of our governance was to address the migration issue, so that our country would no longer be considered an attractive destination. In this context, as promised, inter alia: In June, we tabled the bill for the establishment of the Deputy Ministry for Migration and Asylum, which was voted on a few days ago; We substantially enhanced the Immigration Office; We have more than doubled the number of asylum applications examiners; We drastically reduced the application processing time to three months; We increased the number of deportations by 200%; and We interconnected the computerised systems of the Ministry of Interior and the Ministry of Labour, succeeding in identifying irregular migrants who were working in Cyprus. As a result of our work, for the first time, asylum seekers and non-beneficiaries fleeing their homeland have increased by 66%. The facts speak for themselves. Dear friends, The Green Transition and environmental protection play an important role in improving everyday life and constitute a key component of the political orientation of our governance. In this context, we proceeded, inter alia, with: Enhanced renewable energy schemes for households, notably the “Photovoltaics for All” scheme; A Virtual Net Metering Scheme to enable the utilisation of renewable energy sources by households and businesses; For the first time, an energy upgrading scheme for large enterprises; and Enhanced subsidy schemes for the purchase of electric vehicles. Ladies and Gentlemen, As I have pointed out, an essential component for the foundation of the better future we desire is upgrading education and providing quality health services. These are two policy areas which have an impact on each and every one of us almost daily and are areas of paramount importance for our governance. I will briefly mention that in the first year, we proceeded with: The new student evaluation system; The modernisation of the afternoon and evening programmes and the change of employment status; The completion of the installation of photovoltaic panels in 405 schools and the beginning of the implementation of our decision regarding the installation of air conditioning in all schools; The extension of All-Day schools in secondary and primary education; The launch of the process of updating the course curricula at all levels; The completion of a proposal and the submission of a relevant bill on free compulsory education from the age of four; The Youth Culture Card; The operation of Accident and Emergency Departments in private hospitals and the improvement of the Accident and Emergency Department at Nicosia General Hospital; The placement of nurses in schools in remote areas; The Equipment Subsidy and Hospital Accreditation Schemes. Dear friends, The modernisation of the State, and especially of the institutions, is the keystone of our policies. In this context, continued institutional reforms are a key component of our government programme. We are working methodically for the successful implementation of the three emblematic reforms concerning Local Government, Justice and Public Service. In changes of this magnitude, challenges are expected and largely inevitable. Where structural distortions are demonstrated, the government, in cooperation with the social partners and Parliament, will take corrective actions. In the context of the institutional modernisation of the State and the need to regain citizens' trust in institutions, one of the important reforms we implemented concerns the process of selecting members for the Boards of Directors of the Semi-Government Organizations. The establishment and operation of the Advisory Council is a very important step towards strengthening equality which, at the same time, allows hundreds of our fellow citizens to seek appointment for the first time. In the same context of the institutional modernisation of the State, we regulated for the first time, by law, the way of recruitment and employment of advisors and associates of the President and members of the Council of Ministers, while Aiming at the effective implementation of the decisions taken by the government, we established the Secretariat for the Coordination and Support of Government Work in the Presidency of the Republic. At the same time, as I said before, our approach to corruption and collusion is clear and absolute. In addition to the practical zero tolerance to such phenomena which damage the reputation and credibility of our country, we have taken other important actions that prove our unquestionable political will. Indicatively, I mention the substantial support of the Independent Authority against Corruption, the establishment of a Monitoring Committee for the Recommendations of the Greco Group, the establishment of an internal audit unit at the Presidential Palace and the strengthening of the Committee of Ethics and Safeguarding in Sports. Dear friends, The policies and actions we have decided, implemented or launched, always through an approach which places people at the centre, will be thoroughly published and in even more detail so that citizens have full knowledge, while, within the framework of continuous accountability, Ministers and Deputy Ministers will present the work they have done in press conferences. This evening, I have outlined the most important policies that we have promoted and implemented in the first year of our governance. I am certainly not saying that we have not avoided mistakes in these first twelve months, but I can confidently claim that we laid the foundations in order to achieve the better Cyprus we all envision. Thank you very much.   (GS/NG/NZ/NGian/MS/IA/EL)