What Measures Were Discussed Between the Finance Ministry and Coalition Parties
Finance Minister and Coalition Parties Address Potential Policies to Tackle Inflation and Boost Social Welfare
On October 23, Finance Minister Makis Keravnos met with the ruling coalition parties—DIKO, EDEK, and DIPA—to discuss proposed measures aimed at addressing rising costs. According to Brief, the parties presented various suggestions, including taxation of banks and introducing disincentives for inactive property owners. These proposals align with the Finance Minister's view that any new measures must be cost-effective and feasible. The potential tax revenue could help maintain the state's budget surplus, enabling further social policies, while new housing projects could reduce real estate prices for both purchase and rent.
Other measures discussed include eliminating VAT on emissions-related charges in electricity bills, extending electricity subsidies beyond the October deadline, integrating low-income pensioners into the EAC’s 08 tariff scheme, providing heating oil subsidies for mountainous areas, increasing subsidies for school buses, broadening the criteria for child benefits, and creating a Unified Housing Policy Body by restructuring existing entities.
Some of these proposals, such as heating oil subsidies for mountainous regions and school bus subsidies, are already part of the Ministry's plans.
Additionally, measures concerning the Electricity Authority of Cyprus (EAC) were presented, aiming to lower energy costs. Suggestions included purchasing larger quantities of fuel and emissions at lower prices. Brief reports that similar recommendations have also been made by the Fiscal Council.
The coalition parties also proposed taxing banks based on the spread between deposit and lending interest rates and introducing disincentives for owners of unused properties. There has been previous discussion on taxing inactive properties, though current government schemes offer incentives for property owners to rent out idle properties, with financial rewards in the thousands of euros.
No decisions are expected during today’s Cabinet meeting. The Finance Minister stated that any new measures will be announced in November following further discussions.
