**Cabinet Approves €70 Million Package to Address Rising Cost of Living**
In a decisive move to combat inflation and the escalating cost of living, the Cabinet of Cyprus has approved a €70 million emergency assistance package. This decision, announced on Wednesday, adds to the government's existing measures, bringing the total financial support aimed at alleviating economic pressures to approximately €160 million.
Finance Minister Makis Keravnos highlighted the government's commitment to supporting households that are grappling with increased living expenses. He stated that the new measures are a direct response to the financial challenges faced by many citizens and demonstrate the government's proactive approach to economic management.
The newly approved package includes several key initiatives designed to provide immediate relief to vulnerable populations. Among these measures is an extension of electricity subsidies, which aims to ease the burden of rising energy costs on households. Additionally, the government will implement reductions in Value Added Tax (VAT) on essential products and photovoltaic systems, making these necessities more affordable for consumers.
Another significant component of the package is a one-off payment of €200, which will be distributed to approximately 53,511 vulnerable citizens. This direct financial assistance is intended to provide immediate support to those most affected by the current economic climate. Furthermore, the government plans to increase financial aid for residents of mountainous areas, recognizing the unique challenges faced by these communities.
Minister Keravnos attributed the government's ability to introduce these additional measures to its sound economic policies, which have reportedly led to budget surpluses and a reduction in public debt. He emphasized that these fiscal strategies have created the necessary conditions for the government to respond effectively to the needs of its citizens during this period of economic uncertainty.
The new measures come on the heels of previous government interventions aimed at addressing the cost of living, indicating a sustained effort to provide support in the face of ongoing inflationary pressures. The combined value of both existing and newly approved measures reflects the government's commitment to ensuring that citizens have access to essential resources and financial assistance.
As the situation continues to evolve, the government remains focused on monitoring economic indicators and adjusting its policies to best serve the needs of the population. The approval of this €70 million package marks a significant step in the ongoing efforts to mitigate the impacts of rising costs on everyday life in Cyprus.