President Nikos Christodoulides has defended Cyprus’ budget surplus, saying responsible fiscal policy has enabled the government to increase household disposable income and invest in healthcare, education, housing and social welfare.
Speaking to journalists on Thursday evening before an event organised by the Olympiada Neapoleos association in Nicosia, Christodoulides responded to criticism from political parties that the country’s leading position in the EU for its budget surplus was not translating into tangible benefits for citizens.
“I wish I were receiving criticism from political parties for our country’s first place in public surplus,” he said.
President points to tax and pension reforms
Christodoulides said the surplus reflected the government’s responsible fiscal policy and had enabled Cyprus to submit a surplus budget for the third consecutive year.
He said the government’s financial position had also created the conditions for a tax reform, the first in 23 years, aimed at increasing household disposable income and supporting Cypriot businesses.
He also highlighted plans for pension reform, the first since 1980, aimed at increasing pensions, particularly for low-income pensioners.
The President cited two increases in the minimum wage and the restoration of the cost-of-living allowance (CoLA), known in Greek as ATA, to 100%.
He added that the government was investing in healthcare, education, housing and the welfare state.
“Public surplus allows us to invest in healthcare, education, housing and the welfare state. So they can continue to accuse us,” he said.
Christodoulides leaves door open to further measures
Asked whether the government would introduce additional support measures, Christodoulides said further action would be considered if necessary.
“If the need arises, we will look at more measures,” he said, adding that the government was assessing possible measures on a daily basis.
However, he ruled out making spending commitments simply to win public approval ahead of the next election campaign.
He said the government would not be drawn into a cycle of promises designed to satisfy particular audiences, insisting that fiscal responsibility remained essential for continuing reforms and social support.
President warns against repeating past mistakes
Christodoulides said the government had to maintain responsible fiscal policies while taking regional and international developments into account and protecting the interests of future generations.
“We are not interested in the next elections; we are interested in the next generations,” he said.
He referred to Cyprus’ past economic crisis, the deposit haircut and the emergence of social grocery stores as examples of the consequences of what he described as irresponsible policies.
The President also said spending on social welfare had increased by around 6% or more almost every year.
He stressed that fiscal policy must continue to safeguard citizens’ security across all sectors while allowing the government to respond to changing economic conditions.
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