**Keve Urges Government to Enhance Dialogue on Economic Competitiveness**
The Cyprus Chamber of Commerce and Industry (Keve) has emphasized the necessity for a structured and ongoing dialogue with the government regarding the country's competitiveness and overall economic health. This call to action comes in light of recent reports indicating that a company has decided to leave Cyprus, prompting concerns about the potential implications for foreign investment on the island.
Philokypros Roussounides, the secretary general of Keve, articulated the urgency of establishing closer and more frequent communication with government officials. He asserted that proactive engagement could help address issues impacting foreign investment before they escalate into more significant problems. Moreover, he suggested that such dialogue would better position Cyprus to attract foreign firms, especially in times of geopolitical uncertainty when companies may seek new operational bases.
Roussounides was careful to clarify that the departure of a single company should not be interpreted as indicative of a broader trend of exodus among businesses in Cyprus. He stressed that Keve does not wish to incite unnecessary alarm regarding the status of other companies operating in the region. Instead, he framed the recent departure as a case that underscores the importance of having a consistent communication channel between the chamber and the government.
“We are advocating for a dialogue focused on the competitiveness of the country and the economy as a whole, as these factors directly influence foreign direct investment and the stability of companies based in Cyprus,” Roussounides stated. He emphasized the need for this dialogue to serve as a preventive measure, allowing for immediate responses to emerging issues that could affect the business environment.
In discussing the challenges facing Cyprus, Roussounides highlighted the international minimum tax framework known as Pillar Two, which imposes a 15 percent minimum effective tax rate on large multinational corporations with annual revenues exceeding €750 million. He indicated that this is one of several areas where open communication with the government is essential.
Additionally, he pointed out the high energy costs in Cyprus, which may exceed those in competing jurisdictions, potentially influencing corporate decisions regarding their operations on the island. “There must be continuous communication and dialogue with the country’s chamber, given that it is an institution which, by law, advises on economic matters,” he noted.
Roussounides reiterated his caution against overreacting to the recent company departure, urging stakeholders not to interpret it as a signal of a larger trend. “Without wanting to cause panic or create any domino effect, we want this discussion to take place regularly, particularly on foreign direct investment, so that we can anticipate possible similar situations,” he said.
Moreover, he framed the need for closer cooperation with the government not only as a means of reacting to potential losses but also as a strategy to capitalize on new investment opportunities as they arise. Keve has established connections with international chambers through its economic diplomacy initiatives and is actively engaged in trade missions aimed at fostering foreign investment and supporting the international expansion of Cypriot businesses.
Roussounides noted that these international contacts could be particularly advantageous when geopolitical instability prompts companies to reconsider their operational bases. He referenced the Middle East, where uncertainty and security concerns have led some firms based in Dubai and Qatar to explore relocating their headquarters to Europe.
“When this dialogue exists, and both we as the chamber and the state are alert, we can make use of such cases of geopolitical upheaval,” he explained. He also acknowledged the broader uncertainties faced by the global economy, particularly during politically tumultuous times, such as those experienced under the Trump administration. For Cyprus, he concluded, such uncertainties could present opportunities, provided the country is prepared to act swiftly.
In summary, Keve's call for enhanced dialogue with the government highlights the critical need for proactive measures to ensure economic competitiveness and sustain foreign investment in Cyprus. The chamber's leadership is poised to present proposals aimed at addressing these challenges, reinforcing the importance of collaboration between the business community and government entities in navigating the complexities of the current economic landscape.