Cyprus’ President, Nikos Christodoulides, in his address at the 60th PASYDY conference (Pancyprian Public Servants' Union), which took place on Tuesday, expressed his personal commitment to safeguarding Cyprus' credibility as a thriving business and investment hub.

Addressing the US and UK sanctions imposed on Cypriot individuals and entities, the President emphasized the need for careful handling in order to protect Cyprus' reputation as a favorable business and investment destination. He underlined that preserving credibility is a significant priority for him. The President stressed that his government's utmost priority is to overcome this issue definitively and move forward.

The President highlighted the importance of maintaining fiscal discipline, expanding the economy's productive base, and consistently promoting structural reforms. He explained that such measures contribute to enhancing the economy's competitiveness and strengthening the welfare state. The President emphasized the government's commitment to fiscal discipline and a human-centered economic approach, with the objective of promoting targeted investments and reforms. The aim is to diversify the economy's productive base by leveraging research, innovation, technology, and human resources.

In addition, Nikos Christodoulides discussed the National Recovery and Resilience Plan and the long-term development strategy, "Vision 2035." He referred to the justice sector essential reforms, the extensive subsidies for digital and green investments, the increased support for research and innovation, the new tax reform, the employee training programs, the improved alignment of education with the labor market, and the enhanced legal and institutional frameworks to combat corruption.

Regarding the Fit for 55 Package and the green transition overall, the President acknowledged that accomplishing a significant reduction in polluting emissions by 2030 poses a major challenge for Cyprus. He also underlined the necessity for substantial investments and a comprehensive transformation of the entire economy.

Furthermore, President Christodoulides announced the gradual restoration of shift allowances and overtime compensation for PASYDY; the process is expected to be completed by 2025. He also underscored the significance of transforming the public sector into a more agile and efficient mechanism, leveraging technology and implementing objective and measurable criteria for employee incentives.

Moreover, Mr. Christodoulides highlighted the challenges of digital transformation and electronic governance. He noted that these initiatives embrace both the interaction between the state and citizens and the state and businesses. Specific action plans are being implemented to strengthen electronic governance and provide public servants with the necessary tools to enhance productivity and improve services for citizens.

In his speech, PASYDY Secretary General, Stratis Matheou, emphasized the union's commitment to public service reform and expressed his satisfaction that it is being implemented, as it has been a longstanding request of the union. Mr. Matheou referred to the past year’s achievements, including the new Pension System, the transitional agreement for cost-of-living adjustments (COLA), and the extension of flexible working hours for public servants.

During his introductory address, the President of PASYDY, Antonis Koutsoullis, acknowledged the pivotal role of the public sector in Cyprus' modern history, such as the country's entry into the EU, the successful European presidency, and more recently, its contribution to handling the challenges posed by the pandemic.

It is worth noting that the conference was attended by various dignitaries, including House of Representatives President Annita Demetriou, Attorney General George Savvides, ministers, Members of Parliament, and representatives from other unions. Representatives from the Turkish Cypriot Trade Union Organization (KTAMS) and ADEDY, the Trade Union Organization of Public Employees in Greece, were also present.

The President's statements come in a time where Cyprus’ services sector faces multiple challenges, due to the sanctions imposed by the US and UK on individuals and entities in Cyprus, due to the alleged financial facilitation they provided to Russian businessmen. Despite the President's pledge that Cyprus will uphold legality, the process from now on regarding the sanctions, has not yet been clarified.