**Keravnos Promises New Measures to Address Rising Cost of Living in Cyprus**
Cyprus’ Finance Minister, Makis Keravnos, announced on Monday that the government is preparing to introduce “new measures” aimed at alleviating the increasing cost of living. This announcement follows a meeting with representatives from various trade unions, where the minister emphasized the government's ongoing commitment to evaluate and respond to the economic challenges faced by citizens.
Keravnos stated that a comprehensive package of measures will be presented to the cabinet during its upcoming meeting later this week. He noted, “The government is working on some measures and there will be a package before the next cabinet meeting. We are constantly working on and evaluating the situation.” The minister highlighted the government’s focus on supporting all social strata, particularly the working classes and vulnerable groups, during this challenging period.
When asked about the specifics of the planned measures, Keravnos indicated that they would be “targeted” to address specific needs while also having the potential to serve as “across-the-board measures” where applicable. He remarked, “Some problems concern everyone,” suggesting that the government recognizes the widespread impact of the rising cost of living.
In his comments, Keravnos expressed confidence in Cyprus’ approach to managing the cost-of-living crisis, suggesting that the measures implemented thus far have positioned the country favorably compared to other European nations. He asserted, “My assessment is that in Cyprus, a member state of the European Union, with the measures we implement and the social policy we practice, we have surpassed many other countries in whatever measures they implement, and Cyprus could be a model in terms of dealing with the cost-of-living crisis.”
The discussion around potential measures comes at a time when citizens are feeling the pinch of rising fuel prices. Diesel prices in Cyprus have recently reached €2 per litre, while petrol prices hover around €1.68 per litre. These increases have been attributed to geopolitical tensions, particularly the control exerted by Yemen’s Houthi movement over significant maritime routes, including the Bab al-Mandab strait, a crucial passage for global oil supplies.
Keravnos was questioned about the possibility of implementing a price cap on fuel, similar to measures announced by Italian state-controlled energy company Eni, which has set price limits for diesel and petrol at its stations in Italy. The minister responded by highlighting the measures Cyprus has already taken over the past two years, asserting that they are “much more improved than any measures taken by any other European government.”
However, the government’s approach has not been without criticism. The International Monetary Fund (IMF) has previously cautioned against implementing non-targeted reductions in excise taxes, urging the Cypriot authorities to resist such measures. This warning reflects concerns about the potential long-term economic impacts of broad fiscal policies that may not effectively target those most in need.
As the government prepares to unveil its new measures, the economic landscape in Cyprus remains challenging. The rising cost of living, exacerbated by international events affecting oil prices, continues to place pressure on households. The upcoming cabinet meeting will be closely watched as citizens await details on the proposed solutions aimed at easing their financial burdens.
In summary, Finance Minister Makis Keravnos has pledged that new measures to address the rising cost of living will be presented to the cabinet later this week. With the government focusing on targeted assistance for the most affected groups, the effectiveness of these measures will be crucial in navigating the current economic challenges facing Cyprus.