THE COUNCIL of Ministers yesterday approved a package of measures aimed at boosting economic growth and employment, and improving productivity and the competitiveness of the Cypriot economy.
Speaking after the cabinet meeting, government spokesman Stefanos Stefanou said the basic preconditions for stimulating growth included successful fiscal consolidation, a favourable tax system for businesses, adequate liquidity in the economy and promoting high-value development projects.
The package was put together by the finance ministry but does not include any provisions for the creation of casinos, Stefanou said when asked.
According to the spokesman, the new measures cover all areas of economic activity, and include encouraging employment, improving the framework for attracting foreign investment, introducing a mechanism to guarantee the financing of small and medium-sized enterprises, modernising property taxes, introducing a charge on town planning renovations, measures to support tourism, enriching the services sector, granting tax incentives and green growth.
Stefanou said the government would table legal bills in parliament before March 1. He did not go into detail as to what exactly the proposed measures entail.
At the same time, mainly through the 2012 budget, a series of other measures are being promoted to help growth, he said, adding: “these measures focus primarily on promoting a regulatory framework for public-private partnerships, infrastructure projects, providing town planning incentives, simplifying the regulatory framework for improving the business climate and accelerating the installation of photovoltaic systems from renewable energy sources.”
“The main aim of the government is to immediately implement as many of the proposed measures for growth as possible, although they are expected to have a medium and long-term impact,” he said.
Where proposed measures involve more than one ministry, the relevant ministries will coordinate to ensure the quickest possible implementation, Stefanou said.
According to the spokesman, cabinet has set a timetable for the promotion and implementation of the approved measures, clarifying who is responsible for their implementation.
Asked if the opening of casinos is included in the package of measures, Stefanou said no, but that the issue was pending before the finance ministry.
In preparing the measures, Stefanou said the finance ministry consulted with representatives of the Cyprus Chamber of Commerce and Industry (KEVE), the Employers’ and Industrialists’ Federation (OEV), the Cyprus Investment Promotion Agency (CIPA) and the Cyprus Institute of Certified Public Accountants, as well as with parliamentary parties.
The measures will be made public, he added.
