Chairman of Cyprus Employers and Industrialists Federation (OEB), Giorgos Pantelides, expressed concerns for broader and long-term consequences in the economy, due to the ongoing conflict in the Middle East, and noted the Federation's expectations for a proactive plan on behalf of the government. 

Pantelides was speaking to journalists in Thursday afternoon, after a meeting of the Federation's board with Finance Minister, Makis Keravnos, during which they discussed the current situation and the measures taken to tackle the effects of the crisis. Keravnos, who was replying to a question on the matter said that "it is not particularly important to discuss new measures when the measures that were just announced yesterday have not yet been implemented so that we can see how they work in tandem with developments."

Pantelides noted that the situation is still volatile and added that the consequences in the economy will show depending on the intensity and the duration of the conflict in the Middle East. He did say, nevertheless, that the resilience of the economy of Cyprus allows "some time to plan those actions that will ensure both fiscal stability and maintaining the resilience of our economy."

He also noted that "our economy is operating on solid foundations, but proactive planning is required to manage the potential impacts both short-term and long-term." He particularly spoke of the tourism industry and stressed that it requires support from the government, adding that citizens and businessmen need support equally. He expressed concern over inflation trends associated with energy.

On his part, the Finance Minister reaffirmed that the resilience of the Cyprus economy allows measures as a response to these challenges. He thanked OEV members for the continued cooperation and said that the government will examine the suggestions they made during their meeting.

Keravnos pointed out that, in order for hotels to open in April, the government will subsidize 30% of employees' salaries. Additionally, he referred to another scheme that is being considered, in order to support the hotel industry, to receive Cypriot tourists during the period of Easter holidays. "This shows that the government is monitoring, constantly studying and developing schemes," Keravnos said.

He also explained, responding to a journalist's question, that the measures announced so far, follow a directive of the European Commission towards member-states, according to which any measures should focus on vulnerable groups or sectors, they should not be long-term, they should not cause fiscal pressure and they should not encourage overconsumption of energy resources.

Source: CNA