Filenews 3 July 2024 - by Angelos Angelodimou
The Economic and Competitiveness Council (SOAC) made recommendations concerning problems in various sectors of the economy.
It focused on seven points, including the competitiveness of the agricultural sector, strengthening pension income, tackling the low birth rate and finding affordable housing, while at the same time the Council proceeded with the development of its own tool for monitoring and assessing the potential risks/risks of the Cypriot economy.
In more detail, the Council proceeded to present concrete policy recommendations it has presented.
1 Competitiveness of the agricultural sector
The following are proposed as a priority: Exploitation of knowledge and technology. Differentiation, specialization and product promotion. Improvement of quality and new system of distribution of products by producers. Allocation and utilization of unspent resources in the sector. Focus on niche, such as organic and local, registration of more local products as PDO and PGI (Protected Geographical Indication).
2 Green transition
Proposals, among others, for: Creation of a Deputy Ministry for Climate, Environment and Green Sustainability. Development of a long-term energy strategy. Upgrading of the Electricity Network and Infrastructure. Liberalization of the energy market. Increase of Production from RES and Enhancement of Energy Efficiency. Electrical Interconnection with neighbouring states. Development of Cyprus' natural gas resources.
3 Improving competitiveness
The Council's position is that further emphasis should be placed on encouraging takeovers and mergers, thus aiming at creating larger enterprises, able to exploit economies of scale and becoming more productive and competitive.
4 Strengthening retirement income
The Council recommends that the Government take the necessary measures and actions to strengthen the second (Occupational Pension Funds) and third pillars (Private Pension Schemes) of the pension system, which in combination with the first pillar (Social Insurance Fund) will be able to offer higher pensions and consequently a decent living during the pensionable period to all citizens.
Among other things, it proposes automatic registration of all private sector employees in a multi-company Professional Pension Fund or in an Occupational Pension Fund offered by the employer.
5 Tackling low birth rates
The Council's position is that the Government should proceed with an integrated plan to improve the quality of life of families with children, adopting measures focusing on "Family Policy". Among other things, parents should be able to receive a monthly allowance per child for education costs, while families on low incomes should be able to receive additional subsidies.
6 Finding affordable housing
The SOAC considers that further measures are needed to support citizens, especially young people and young couples: Creation of a Single Housing Policy Body. Utilization of State land to offer affordable housing. Reinforcement of the Cyprus Land Development Organization. Compensatory measures from large developments. Tax relief and interest subsidy.
7 Potential risks to the economy
According to the results of a survey conducted in 2023, the risk of "cyberattacks with disruptions in the operation of critical infrastructure" presents a higher risk indicator, with the index reaching 85%. This is followed by the "mass influx of migrants", with a risk index of 82%, and the risk of "worsening climatic conditions", with a risk index of 82%.
