The Minister of Finance, Makis Keravnos, reaffirmed on Wednesday the government’s commitment to seeking permanent solutions to societal issues, emphasizing that it considers the perspectives of the public and political forces alike. 

Minister Keravnos noted that, according to 2023 data, 13.9% of Cyprus’s population faces poverty risk, one of the lowest rates in the EU. However, he highlighted that “the government acknowledges the challenges society faces and will not rest on favorable statistics alone.” Speaking at AKEL’s Economy Forum, titled “Strong Economy for All: Sustainable and Socially-Oriented,” he assured attendees of a balanced, human-centered economic policy that integrates societal demands and input from political and social partners.

“Complacency is not an option. Our goal is to maintain positive economic indicators to enable continued targeted social policies,” Keravnos stated, adding that Cyprus’s economic model needs to diversify to be resilient.

Minister Keravnos explained that Cyprus’s economic model should adopt a balanced development policy by supporting growth in new sectors while also revitalizing traditional ones like agriculture and livestock. The goal is to foster synergies, modern production methods, and an export focus. Moving forward, the government will prioritize conditions that facilitate joint investments by Cypriots and foreign investors, focusing on infrastructure, new production units, and job creation with an emphasis on exports. Support will also continue for key sectors like tourism, shipping, retail, and professional services, essential for improving competitiveness.

Despite challenging circumstances left by previous administrations, Minister Keravnos expressed pride in the government’s social policy measures, which he noted are difficult to find elsewhere in Europe at this time. However, he acknowledged the difficulty in achieving permanent solutions due to EU obligations, rapid geopolitical changes, and armed conflicts, underscoring that future generations must not bear the cost of today’s challenges.

Cyprus’s position as a small, open economy at a strategic crossroads means it cannot operate in isolation. “Eurozone economies, especially larger ones like France, Germany, Italy, and Spain, are facing serious challenges that impact broader economic and social stability,” he remarked, adding that Cyprus must implement prudent policies to maintain financial stability amid ongoing division and threats.

Keravnos emphasized the importance of social equity in economic policies, particularly in small, open economies like Cyprus that are vulnerable to negative external influences. “Our government’s economic strategy is people-focused, attentive to vulnerable groups and the middle class, while also mindful of future generations, ensuring we do not burden them with debt,” he said.

He shared statistics showing that the poverty risk in Cyprus stands at 13.9%, compared to the Eurozone average of 21.4% and even higher rates in wealthy nations like Germany, France, Italy, and Spain. He acknowledged the high energy cost of 29.9 cents/KWh in Cyprus but affirmed that the government is aware of the societal difficulties and does not take comfort in favorable comparisons.

On the global stage, Keravnos expressed skepticism about the effectiveness of current global and social policies, pointing out their contradictions. He questioned how initiatives like globalization, which aim to improve global well-being, align with emerging economic blocs and potential geopolitical conflicts that could undermine these goals. He highlighted the significance of the BRICS countries, which represent over 33% of global market share, with significant economic and geopolitical influence.

Minister Keravnos commended AKEL for organizing the forum, noting that in an era of polarized political discourse and populism, the forum serves as a platform for constructive dialogue and exchange among respected participants, offering a refreshing space for debate on economic and social issues affecting Cyprus.