On Monday, President of the Republic Nikos Christodoulides announced that the 2025 budget will be surplus during the commencement of the Cabinet meeting, emphasizing discussions on "landmark policies" such as digital transformation, bold reforms, climate change, and addressing low birth rates.

He noted that under no circumstances should political or other costs be considered.

Addressing the members of the Cabinet, President Christodoulides emphasized that this special session is focused on the 2025 budget, following the approval of the strategic framework for 2025-2028.

President Christodoulides mentioned that he had specifically asked Cabinet members to thoroughly examine each Ministry’s budget, categorizing non-discretionary, operational expenses that cannot be avoided, and social and developmental expenditures—"all those that concern the daily lives of the people, society, which is our priority."

"I specifically requested that the developmental part of the budget be aligned with the priorities we promised to the people, the actions included in our pre-election program," he continued. He reiterated that "our social contract with the people, everything we promised, we are here to implement, and I am particularly pleased because the implementation of our promises is at a very high level." The priorities of each Ministry must be absolutely aligned with the budget ceilings, President Christodoulides added, noting that the budget "will be surplus" and "there is no question" of it not being so.

"What I want is to better utilize each Ministry's budget, especially towards developmental and social expenditures," President Christodoulides said, adding that based on the discussions in the Cabinet, he will continue the practice from the beginning of the year, and specifically at the beginning of 2025, to "present to the public what we will do in 2025." He added that before the end of March 2025, he will present which of the 88 actions "we promised for 2024" were implemented, why any were not implemented, and so forth, as part of accountability to society.

He added that Ministers would do the same in separate press conferences.

"The budget of any Government sends the signal of its priorities," President Christodoulides said. He noted that it is based on his pre-election program, which is being implemented over five years, adding that new needs arise along the way, "some data, which we naturally take into account."

"It is important," he added, to place particular emphasis on some "landmark actions" in the second half of 2024 and throughout 2025, such as the digital transformation of the state. He mentioned that a special session was held where the relevant Deputy Minister informed the Cabinet. "The implementation of digital transformation, which horizontally affects all of us, is a priority, and we cannot accept any delay in this matter," he said.

He also mentioned "bold reforms," noting that "they need to be made." "The State was founded in 1960; today we are in 2024. We cannot operate with the terms of 1960, and within the framework of bold reforms, yes, do not expect everyone to be satisfied with what we are promoting. We are here, if we believe it is for the good of society, if we believe it will improve citizens' daily lives, to clash with anyone," President Christodoulides said. He added, however, that "of course," there will first be discussions within the framework of public consultation with those affected, "but under no circumstances do I want political or other costs to be taken into account," he noted.

"We are here first and foremost for society," he said.

President Christodoulides also referred to the green transition, noting that it is "very important." Climate change is here, and we are already paying the consequences, he said, adding that "we have a responsibility, especially towards the younger generation," as well as other issues like measures for low birth rates for which he expects specific proposals in September. "It is an issue that we must address with policies within our political philosophy, which is social liberalism," he said.

"A strong economy," he continued, "is based on the triptych that informs our decisions: fiscal responsibility, a strong financial system, and bold reforms to simultaneously enable social policy, targeted support for those in need, as well as priorities like education and health, which are high on our list, and also for the middle class, which historically has been the backbone of the Cypriot economy and society."

In closing, President Christodoulides said he expects to hear from Cabinet members about "the three or four landmark policies" on which to build the budget, which he reiterated "will be surplus."