President reiterates support for businesses — wants to “turn challenges into opportunities”

President Nikos Christodoulides on Tuesday addressed the Cyprus Employers and Industrialists Federation (Oev), during the federation’s annual general meeting, where he reiterated the government’s support for the local business communication.

“Any government cannot fully develop the potential and prospects of the economy without the active participation and cooperation of businesses,” he said.

“Businesses are the driving force behind economic development,” he added, noting that it is “our responsibility to provide the necessary favourable environment and systematically support their efforts for growth”.

Moreover, the president said that he seeks “genuine and substantial cooperation between the public and private sectors”, saying that through this collaboration, the government can facilitate a better environment for businesses, promote innovation and entrepreneurship, and achieve sustainable economic growth.

As a recent example, he cited his participation last week in an event in London, which Oev helped to set up, aiming to promote Cyprus and attract quality investments.

“I have reiterated this many times, and I mean it wholeheartedly, that I consider both Oev and the Cypruss Chamber of Commerce (Keve) to be our partners in the effort to strengthen the developmental path of our economy,” he stated.

“In the same context, and with reference to my presence here today, I want to announce our decision as a government to institutionalize direct dialogue with the business community,” he added.

He said that the federation, along with Keve and the Association of Cyprus Banks, will meet at the Presidential Palace in late May.

The president explained that this will allow everyone to work together and share plans, leveraging everyone’s expertise, including the entire Council of Ministers, who will listen to feedback before moving forward. He noted that similar meetings with foreign investors last year had positive outcomes.

Christodoulides also stated that instability in the Middle East, as well as the broader geopolitical environment, is a source of uncertainty, negatively impacting both markets and trade.

“At the same time, our economy’s dependence on exogenous factors – and it is for this reason that we must give more importance to Cypriot entrepreneurs – combined with the fact that we are an island, leads to an increase in the cost of goods and energy,” he stated.

“In this unpredictable scenario, we are called upon to adopt actions and follow policies that strengthen the resilience and competitiveness of the economy, while also safeguarding the country’s social fabric,” he added.

The president also underscored the importance of clear planning, continuous vigilance to avoid past pitfalls, and the implementation of government programmes for 2024.

He stressed the need for fiscal responsibility, a stable financial sector, and ongoing bold reforms.

These pillars, he explained, underpin the government’s economic policy, guiding decisions throughout the administration’s term.

Moreover, he noted that despite challenges, Cyprus’ economy shows positive trends, projected to have the second-highest growth rate in the eurozone in 2024, as per the European Commission.

Christodoulides also said that the country’s credibility is crucial for stability and achieving common goals, necessitating actions like establishing a National Sanctions Implementation Unit and a Unified Supervisory Authority for administrative service providers.

Additionally, initiatives such as signing a memorandum with the FBI to bolster the Economic Crime Unit and launching a coordinated effort for the country’s rebranding abroad are underway, seeking to enhance Cyprus’ reputation internationally.