Finance Minister says new support measures imminent — electricity subsidy may be renewed
Finance Minister Makis Keravnos on Thursday said that new support measures will be discussed at the upcoming Cabinet meeting, scheduled for next week, after which they will be announced to the public.
He also did not exclude the possibility of a potential extension of the electricity subsidy, which was initially launched last October and is set to expire at the end of this month.
“The new support measures will be presented during the Cabinet meeting next week, and we are considering the possibility of reinstating the scaled electricity subsidy,” Keravnos said.
The fiscal impact of the subsidy, estimated at €45 million, has been a subject of scrutiny, with the Finance Minister asserting that the cost is within the expected framework.
Addressing concerns about the potential cost variations, Keravnos assured that the government remains committed to fiscal discipline.
“There is already indication as the overall cost, because measures are already in place, and the cost has been announced, so significant deviations from the current cost, which has incurred a financial burden until now, are not expected,” the minister said.
Moreover, he said that “in any case, all planning and implementation of economic measures always operate within the stable framework of fiscal discipline and the resilience of our economy”.
“The government of Nikos Christodoulides,” said the Finance Minister, “will be a supporter of vulnerable groups, middle-income households, and our society in general, which is experiencing ongoing crises and various other challenges”.
“Therefore, the Ministry of Finance is preparing specific measures that we will discuss at the Cabinet meeting next week, where they will be announced,” he added.
When asked if the measures would be horizontal, Keravnos reiterated that the effort would be for the measures to be targeted, stating that this is what the European Commission requires. He also said that targeted support measures are more effective.
Highlighting the possibility of implementing some horizontal measures, the Finance Minister added that “priority is given to targeted measures, and if needed, we will not exclude the possibility of implementing a measure that is horizontal in nature.”
When questioned whether the measures would affect electricity or fuel, Keravnos stated that a significant issue facing the country is the high cost of electricity.
“So, this is our top priority,” he noted.
Responding to a question about the consideration of reinstating the scaled electricity subsidy announced last October, the minister stated that “the measure already in place for electricity is scaled, and therefore, it is targeted, and this is within the priorities under consideration”.
Meanwhile, when asked about the appointment of the Financial Commissioner, Keravnos stated that the relevant process involves the board of directors of the institution announcing the position’s availability, before a certain procedure is allowed to conclude.
Regarding the upcoming appointment of the governor of the Central Bank of Cyprus (CBC), ahead of the expiration of the current governor’s term, the minister said that there is still a considerable timeframe ahead.
“It is a matter that will occupy the government in the coming days and weeks,” he said.
Responding to a related question, the Finance Minister stated that the governor of the CBC is appointed by the president of the Republic of Cyprus.