Press Releases

Thank you very much, Mr President, for the warm welcome.

It is a great pleasure to be back in Cyprus and a great pleasure to have accepted the invitation of my colleague and friend, Mr Constantinos Herodotou, who is a member of the Governing Council of the European Central Bank, and to benefit from your great hospitality.

This morning we had an exchange of views on the global economic situation but also, of course, on the drama which is taking place next door to Europe and the results of the terrible war of Russia in Ukraine. We discussed the economic consequences that it will have for our countries within Europe and specifically within the euro area. Of course, we are all shocked and horrified by the images of the war and everybody is doing their best to address the situation.

From a Central Bank perspective, at the ECB, within the Euro system and obviously the National Central Bank of Cyprus is part of the exercise, we are trying to procure stability of prices, financial stability, but also we are attentive to what support can be extended and we are very keen that the sanctions which have been decided at the European level be also observed and implemented with total integrity and rigor. This is what needs to take place, indeed.

Of course, there are economic consequences to all this, and clearly those countries that have developed an extensive service sector are affected. It has always been the case in the past that Cyprus has demonstrated its ability to change, to improve, to innovate and to move from one business model to another. I very much hope that this yet again the case because it is, of course a fact that the tourism activity, in particular, will be affected.

I have full confidence that Cyprus, with the help of its partners, with the help of Europe at large, like other Euro area members, will be able to recover and balance back and return to the prosperity and the power that it had taken previously, even during the Covid years, where you have demonstrated incredible energy and ability to resist the shock.

As I said, it is a great pleasure to be back, it’s a great pleasure to see that Cyprus is very much not at the far end of Europe but at the core of Europe; a key member and a key player in Europe.

I can attest as President of the European Central Bank that the voice of Cyprus is well listened to and very well respected at the table of the Governing Council and Cyprus plays an important role in Europe and certainly, from my perspective, as President of the euro system, a very important role in the financial circle that I have been privileged and honoured to preside and of which Constantinos is a key member.

Thank you very much, Mr President.

(EK)