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29-01-2024 21:15

State of the Union by the President of the Republic of Cyprus Nikos Christodoulides: Cyprus in Focus – Annual Programme 2024

Thank you very much for being here tonight and I welcome you all, key institutional partners partners in the implementation of the Governance Programme. 

In my Governance Programme I had included as an action "the annual presentation of the legislative programme that the executive intends to promote". Tonight, this process is institutionalised, making a catalytic contribution to the transparent and timely communication of what the Government is planning/programming for implementation. The timing is certainly essential; at the beginning of each year, to inform society, members of the legislature and judiciary, representatives of the social partners and productive stakeholders about our key priorities in 2024. After all, this great effort needs all of us who are aware of and share a common vision to take our country forward, methodically, collectively and in coordinated manner. 

In the past year, the Government has laid the foundations and worked with dedication and specific planning to deliver results in all policy areas. At the same time, we have resolved and wheeled out solutions to long-standing issues. An extensive review will take place on March 4th on the occasion of the completion of one year of governance. 

The government's strategic orientation for 2024 and beyond is based on a set of targeted priorities and modernising reforms: 

First, to improve the daily life of citizens by tackling bureaucracy, promoting digital transformation, and addressing chronic problems such as migration and traffic.

Second, to ensure a strong and resilient economy.

Third, the need to lay the foundations for a better tomorrow with education and health at the centre of our efforts.

Fourth, on green transition.

Fifth, the modernisation and restructuring of the state through the strengthening of institutions.

And sixth, to make Cyprus a strong partner both in the EU and in the wider region. 

The cornerstone of all our policies and actions is, of course, none other than the resolution of the Cyprus problem and the reunification of our country, which will also be a catalyst for the full exploitation of the country's potential. 

From day one, I mentioned the need to work so that every Cypriot citizen's quality of life improves. 

Let me start with the Digital Transformation of the country, as a means of creating a modern, efficient and citizen-friendly state, not as an abstract concept, but as a horizontal action that concerns the whole society. 

Within 2024 we are creating the Digital Citizen, an application that will become the central reference point for each and every one of us and on which we will create the building blocks of the entire range of digital services of the State to the citizen. The beginning is made with the Electronic Signature and Electronic Identity. Within 2024, utilising the Digital Citizen application, we will be able to electronically sign applications for benefits and / or the issuance of official documents, which will be sent electronically to the relevant services without the need for any physical presence. At the same time, official documents such as driver's licence, biometric identity card and vehicle registration documents will be digitised and used through the Digital Citizen application. Implementing this action will also allow our businesses to develop their electronic relationship with their customers further. 

In implementing actions for the transition to the new digital era, we are leveraging the business world in the IT and Technology sector, as well as the transfer of know-how through the updated Memorandum of Understanding with Greece, which will allow us to gain valuable time. 

In 2024 we are also expanding the digital system "IPPODAMOS" of the Department of Τown Planning and Housing, to cover the entire range of licensing, significantly reducing bureaucracy. At the same time, we are revising the planning permit system, simplifying the relevant procedures and reducing the required permit time. In this context, the implementation of 22 specific actions has already started with a target date of implementation of June 2024, the most important of which is securing all planning permit for small-scale residential developments with a new, faster procedure through the participation of private consultants. 

The fight against bureaucracy includes the great challenge of paying all benefits quickly and on time. Following the payment of the statutory pension in a single month, our goal in 2024 is to pay the benefits and allowances of the Social Security, starting with the childbirth benefit, within 30 days. At the same time, following the streamlining of the Minimum Guaranteed Income through the modernisation and upgrading of the relevant procedures, all applications will be processed within 60 days. 

To support young couples, I am also announcing tonight the immediate promotion of a bill to increase maternity leave from 18 to 22 weeks while, at the same time, we are considering extending parental leave. 

It is an undeniable fact that as a State we have to do much more for the Third Age. With respect to our elders, we are launching in 2024, for the first time, a Subsidy Scheme for Fees for Seniors' Care Homes. 

In 2024 we will also complete the new, modern legislation for people with disabilities, which will regulate overall issues of social inclusion, rehabilitation and participation, as well as social benefits and services. At the same time, we are implementing, following its adoption, the legislation on hate speech on the internet. In 2024 we are also expanding the successful scheme of the "Neighbourhood Social Worker" nationwide. 

With the best interest of children in mind, within 2024 we will proceed through legislation to modernise the adoption procedures, as well as the fostering of children whose care is in the hands of the state. 

Regarding the issue of Mental Health, we are completing in 2024 the National Strategy as well as the first phase of the new Mental Health Centre, addressing the issue for the first time through a holistic approach. 

To address the major challenge of securing housing we are implementing the new affordable housing policy, whereas with actions of €77 million we aim to provide solutions to the number one problem of our young people. We are increasing the production and supply of affordable housing for the benefit of the middle class, in particular through the innovative "Rent and Upgrade" and "Built to Rent" schemes, which will be implemented in the spring.

In March 2024 we are also submitting to the Parliament a new legislative framework to enhance transparency, equality and meritocracy in relation to the management of Turkish Cypriot properties, which will include, among other things, new procedures through the use of a point system and auctions. 

I would now like to turn to the issue of migration. The policy we have been implementing for the last 11 months, so that our country is no longer considered an attractive destination, is already paying off. Our country is currently ranked first in terms of the percentage of departures, with the relevant percentage increasing by 66% compared to 2022. 

In 2024 we are specifically focusing on: 

Examining applications within 30 days,

Strengthening the human resources of the returns sector,

Immediate cut-off of allowances - there and where the application has been rejected,

Establishment of the Deputy Ministry of Immigration and Asylum. 

Within 2024 we are also promoting the further tightening of penalties for offences of migrant smuggling by submitting a relevant bill, we are setting up a special unit in the Police for a more effective fight against trafficking networks, we are promoting the payment of benefits to asylum seekers through a prepaid card so that they are used exclusively to cover living needs, and we are strengthening our efforts at the European level with other like-minded Member States to reassess the status of certain regions in Syria and their categorisation as safe areas for repatriation. 

Concerning the problem of congestion, which is a daily inconvenience for all of us, there are currently 750,000 vehicles on our roads, a number which is projected to increase to 800,000 by 2030. Following the "Pame Express" pilot project and the very encouraging results (about 400 vehicles per day are removed from the Nicosia road network), we are proceeding in 2024 with the creation of new "Park and Ride" areas and special "Pame Express" routes, in the first phase, in Nicosia, Limassol and Larnaca. At the same time, in 2024 we are completing the installation of 300 new bus shelters and bus stops and the creation of special lanes for bicycles and buses. 

Ensuring a strong economy is a prerequisite for promoting actions that will lead to an improvement in the quality of life of citizens. 

Our economic policy is based on the triptych: fiscal responsibility, financial stability and bold reforms, building on the important work done in previous years. The compass of our effort is Vision 2035, which aims to make our country "an ideal place for everyone to work, live and do business". 

I am well aware the increase in the cost of living (although inflation has fallen significantly compared to the European Union average) is a key problem for our households, and tackling it is high on our priorities. It is precisely in this context that last October we announced a package of immediate and medium-term measures amounting to 196 million Euro to support Cypriot society. Within 2024 we are continuing with targeted measures and actions, as well as close monitoring of the market to avoid any issues of obscenity. Within the year, the e-kalathi platform will be implemented, and a bill will be promoted which will set a maximum price for specific products. 

We are optimistic about the course of the country's economy. The positive performance is confirmed by the successive upgrades from the rating agencies, which now all classify us at investment grade. Their decisions are a reward for a responsible economic policy and a vote of confidence in the government's plans. However, we are by no means complacent. 

It is through this responsible approach that we prepared the Government's first budget for 2024. A budget with broad parliamentary support – and here I would like to thank once again the political forces – which is representative of our political priorities. A growth-oriented surplus focused on reforms, fiscal balance and social justice. 

A strong primary surplus for the period 2024-2026, significantly higher than the medium-term primary surplus target of 3% of GDP, is an important tool for the implementation of our policies and is fully in line with the new EU fiscal rules. As regards public debt, the target for 2024 is to reduce it to 72.5% of GDP with a key target of 60% in 2026. Of crucial importance for achieving the fiscal targets is the continuous monitoring of the implementation of the Budget and the promotion of economic growth, with emphasis on the implementation of the Recovery and Resilience Plan projects. The target for 2024 is to forward to the EU, after the completion of the relevant preconditions, the 4th and 5th payment requests, to secure an amount of EUR 200 million. For the successful completion of some of the outstanding milestones, I look forward to the cooperation of the House of Representatives. 

In 2024, and to address a chronic distortion, we are commissioning the International Monetary Fund to conduct a study to rationalise the state wage bill, based on international and European standards. Within the first half of the year we are also moving forward with cuts in government spending, so that there is greater scope for development actions. 

In 2023 we activated the National Solidarity Fund through the operation of a dedicated platform and the doubling of the annual contribution to the Fund to €50 million. Five years after its establishment, in 2024, the submission of online applications will be completed for the assessment of compensation from the Fund. 

At the same time, after intensive efforts for a holistic approach to the issue of non-performing loan management, another issue that had been pending for years was resolved in ten months. In the immediate future we will proceed with the appointment of a Financial Ombudsman with expanded responsibilities, strengthening the protection of vulnerable borrowers and the effort to reduce non-performing loans. 

Continuous and bold reforms are a prerequisite for strengthening the competitiveness of our economy. 

As part of our ambitious reforms we are prioritising tax reform. In 2024 we are presenting, as a first step, our proposals for green taxation, which will be fiscally neutral, i.e. the revenue generated will be used for compensatory measures to mitigate the impact on citizens and businesses, as well as to implement new measures and projects and/or strengthen existing ones to address climate challenges. 

2024 is a crucial year in the area of reforms, as we are called upon to implement three flagship reforms adopted by the previous administration: local government, the Public Administration and the Judiciary. The implementation of the reforms, which are admittedly part of an evolutionary process with the need for continuous corrective interventions, will not be without obstacles and difficulties. But we are prepared to take bold decisions to ensure their successful implementation. 

Furthermore, in order to improve access to finance for small and medium-sized start-ups and self-employed people by April 2024, we present a roadmap for the establishment of a National Enterprise Development Agency. The Agency, through financial and guarantee instruments, will finance the general needs of SMEs as well as investments for digital and green transition. 

Attracting productive investment for the sustainability of the economy and creating quality jobs is our administration's top priority. In 2024, we are moving to enrich the successful Strategy for Attracting Investment and Talent, by introducing the Blue Card to attract skilled scientific personnel in areas where shortages are identified, as well as implementing legislation to facilitate strategic investments. In 2024, new concrete major investments are expected to be announced in the energy, technology, tourism and education sectors. 

With the aim of increasing the contribution of the primary sector from the current 1.8% of GDP, we are updating the National Strategy for the Primary Sector and announcing specific actions, using new technologies in the food sector as a catalyst for innovation in domestic raw materials as well as the creation of modern infrastructure and units in the primary sector. 

I am well aware that the continued growth of the economy, combined with the successful management of irregular migration, increases the need for labour, especially in important sectors of the economy such as tourism, construction and trade. Therefore, an important priority for 2024 is implementing a comprehensive employment policy, including the rapid and timely processing of applications. At the same time, we are negotiating with specific countries to secure the necessary workforce through bilateral agreements expected to be signed in 2024. 

In order to create the necessary conditions for a better tomorrow, the substantial upgrading of Education, is one of my top priorities. The aim is to modernise the school to become modern and inclusive. 

Within 2024, we are proceeding with the revision of 43 curricula of all courses in Secondary General and Primary Education, with a reduction of the syllabus and emphasis on essential knowledge, thus addressing the phenomenon of mismatch between skills and labour market needs. 

At the same time, the modernization of the all-day school is being completed within the year, through the linking of the afternoon education programme with the morning one, the upgrading of the courses and, for the first time, the certification of children's knowledge. For example, in English or computer classes, our children will now have the option of taking exams to certify their knowledge. 

We are also legislating to gradually extend compulsory pre-primary education from the age of 4, thus helping to reconcile family and professional life. 

Within 2024, we are upgrading Technical Education, with specific measures for linking curricula to the needs of the labour market. In other words, we are multiplying the programmes we offer to students and young people, modernising them in terms of content and enriching them with new technologies. With specific provisions 

In addition, through the development of a single integrated strategy that we will present in the first half of 2024, we are upgrading the quality of Higher Education by amending the relevant legislation. Specifically, we are categorizing, on the basis of quality criteria, our Higher Education Institutions and our Universities, and upgrading and modernizing curricula. Our aim, among others, is to make Cyprus an attractive and competitive destination for quality studies. 

From September 2024, as a result of the ongoing structured dialogue, the implementation of the reorganized Special Education starts, giving impetus to the implementation of the long-term planning for the transition to inclusive schooling. 

In the field of Culture, within this year, in response to the needs of the artistic community, we are submitting the bill for regulating the status and professional status of the Artist, providing a solution to a long-standing issue. At the same time, by re-targeting and modernising grant schemes, we support all aspects of cultural creation and the digital upgrading of cultural venues.   

Twenty twentyfour has been declared the National Year of Youth. In this context, Ministries and Deputy Ministries are promoting specific actions for our young people, with the ultimate goal of their more active participation in society.

At the same time, we are strengthening the institution of participatory democracy, opening channels of two-way communication with citizens, through the operation of a special digital tool for non-binding referendums and the special platform EKFRACY, for young people. 

I truly believe in the potential and the prospects of the New Generation. Young people must have a meaningful role and voice in the developments in our country. I am announcing tonight that, within 2024, we will proceed, through dialogue with the legislature and social partners, to lower the age limit to 17 years for voting and automatically register young voters on the electoral rolls. 

As I have said repeatedly, the health sector is integral to creating a better tomorrow. In addition to prevention and early diagnosis, a key objective is to ensure quality health services for all citizens, wherever they live and throughout their lives. 

Undoubtedly, the GESY is the biggest social reform. At the same time, in order to safeguard it, we must address any distortions. Our key priorities for 2024 are to manage the autonomy of public hospitals and to strengthen the effectiveness of the GHS supervisory mechanisms. At the same time, within the year, we are advancing important bills, among which are: 

First, the operation of university hospitals for tertiary education purposes,

Second, the establishment and operation of recovery and rehabilitation centres,

Third, palliative care,

Fourth, modernisation of the operation of Radiological Diagnostic Centres and clinical laboratories,

Fifth, providing quality ambulance services,

Sixth, Patient Ombudsman. 

We are already facing the consequences of the climate crisis, one of humanity's greatest challenges. 

Consistent with our objectives and commitments at the European and international levels, we are supporting, through a number of schemes, the energy upgrade of households and businesses, expanding and digitizing electricity grids, promoting energy storage from renewable energy sources and working towards the launch of the Competitive Market. 

We are significantly increasing the funds utilized through the Renewable Energy Sources Fund, from 90 to 135 million euros, implementing the "Photovoltaics for All" Plan. At the same time, we are promoting the penetration of RES projects through land and marine spatial planning by facilitating licensing procedures through the use of an integrated digital platform. We are also subsidising the energy upgrade of large enterprises within 2024 and making the circular economy a reality. 

At the same time, we are boosting electromobility with 36 million Euros, with the re-launch in a few days of an improved incentive plan for the purchase of electric vehicles, with increased subsidies for disabled people, large families and taxi owners, the withdrawal of old polluting vehicles, and a grant for the installation of 650 recharging points. 

I am also announcing tonight the creation of Green Community, with the aim that by 2024, communities and/or clusters of communities, with the contribution of the state, will not only become energy-independent but also serve other environmental objectives. 

To respond to the increased natural disasters due to the climate crisis, we are moving forward with establishing the reinforced Civil Protection Service and upgrading the 112 emergency line. 

The state has to adapt to the needs of today's world and gain the trust of citizens. After all, modernisation and the transition to the new era we all envision cannot be achieved without the trust of society in the institutions. 

It is time for bold institutional reforms. Within 2024, in cooperation with the legislature and independent institutions, we are tabling legislative proposals to regulate, first, the retirement age and rationalise benefits for state officials; second, the optimisation of the existing legal framework on professional incompatibility, and third, issues related to the functioning of both the Law and Audit Office. 

At the same time, our clear will for zero tolerance of practices that expose Cyprus internationally is proven. The reputation and credibility of our country is above all. 

We are moving forward with improving the regulatory framework for the supervision of administrative services companies, including through consultation with stakeholders, and we are submitting a proposal for a Single Supervisory Authority in 2024. At the same time, we are strengthening the competent agencies dealing with financial crime, and expediting, with the assistance of foreign experts, the rapid and full investigation of cases before the competent authorities. At the same time, we are implementing a comprehensive international campaign to restore our country's reputation. 

Strengthening citizens' sense of security is also a key obligation of the state. Among other things, reorganising the police and the new policing plan is an essential step in this direction. The front line of the police force is being strengthened, with 350 police officers being relieved of clerical duties and concentrating on purely operational tasks. 

The presence of the Republic of Cyprus at the international arena should not be monothematic. With a multi-level foreign policy, we claim an enhanced role in the European Union's affairs and promote our country as a pillar of security and stability in the wider Eastern Mediterranean region. 

In 2024, we are seizing important opportunities to highlight further our outward-looking role at regional and European levels, that of a reliable and creative partner. In 2024, among other things, our country will assume the Presidency of the 9 Mediterranean Member States of the European Union, host the 2nd Intergovernmental Meeting between Greece and Cyprus and intensify preparations for the Presidency of the Council of the EU in the first half of 2026. 

At the same time, and taking into account the ongoing occupation of our country and regional developments, we are working to strengthen the deterrent power of our country. In this context, the manpower of the National Guard and securing a modern semi-professional army is a priority. Within 2024, we are proceeding with the revision of the terms of employment, promotion and salary upgrading of the institution of Contracted Soldiers. 

Our priorities for 2024 also include advancing our membership of the Visa Waiver Program for the United States, intensifying our efforts to join Schengen, further developing our bilateral relations with neighbouring states and broadening our regional cooperation. Within the year, we are also moving forward with the establishment of Diplomatic Missions in Armenia and Kazakhstan that will serve the political, economic and commercial interests of the Republic. 

At the top of all our priorities, and my primary concern, is the end of the occupation and the reunification of our homeland. The present state of affairs cannot be the future of Cyprus. A reunited, prosperous Cyprus through a viable comprehensive settlement, based on the agreed UN framework and EU principles and values, will allow us to realise the full potential of our country. 

The appointment of the UN Secretary General's personal envoy, who is already in our country, as a result of our own intense and sincere efforts, opens a window of opportunity after several years, in conjunction with the more active involvement of the European factor. I look forward to our first meeting tomorrow so that we can work together towards a solution to the Cyprus problem. 

Despite the difficulties, problems and challenges, which I do not underestimate in any way, I will do everything possible with the sole aim of resuming negotiations from where they were interrupted in Crans-Montana in order to resolve the Cyprus problem on the basis of a bizonal bicommunal federation, with political equality as described in the relevant United Nations resolutions. 

Tonight, I presented more than 80 policies and actions that we plan to implement in 2024, following a dialogue with the legislature and independent institutions, whose cooperation I aspire to. I strongly believe that a fundamental component of good governance is timely communication of its political priorities. All that I have announced is not exhaustive, nor does it cover all the policy areas detailed in the Action Plans of the Ministries for 2024, which have been published for the first time. 

I want to thank you once again for being here. 

I have faith in the strength that comes from a collective effort for the growth and prosperity of Cyprus. I have absolutely no doubt that we can achieve this through collective effort. After all, this great effort needs all of us who share a common vision; nothing less than to take our country forward for the benefit of all Cypriot people, those to whom we are accountable on a daily basis. 

Thank you very much.       

 

(ΡΜ/AP/NΖ)