Press Releases

Ladies and Gentlemen, 

In the framework of the accountability and transparency that I have promised to the Cypriot people, on 29 January, I presented our policies and our Programme for the year 2025. We have deliberately introduced the presentation of the Annual Governance Programme, because we want citizens to be aware of and share our goals and objectives, so that they can assess and evaluate the progress of the implementation of the Government’s work on a daily basis. It is exactly for this reason that we have introduced the Annual Assessment. Our aim is for society to be responsibly informed about what has been implemented over the past year, enabling people to judge whether words are matched by deeds. After all, our goal is participatory democracy; the participation of everyone, institutional and social partners, political forces, and, first and foremost, the Cypriot people in the great effort to reform our country. And this participation is clearly more effectively achieved through acts of transparency and accountability, such as today's assessment for the past year. 

In our second year of governance, we have succeeded in implementing 90% of the flagship actions I have announced, as well as many other policies included in the Annual Action Plans of the Ministries and Deputy Ministries. Details are published and accessible to all on “Diakivernisi” website. The policies we have implemented reflect our political philosophy, Social Liberalism, as well as our people-centred approach. 

Dear Friends, 

The economic context in which the Governance Programme is implemented is of particular importance, since a healthy, strong, and resilient economy is a key prerequisite for the implementation of our policies. And it is precisely in this context that: 

• We have reinforced economic growth, achieving one of the highest growth rates in the eurozone, reaching 3.4% of Gross Domestic Product (GDP) in 2024.
• After 13 full years, the international rating agencies have upgraded Cyprus' credit rating to investment grade A. This is a vote of confidence in our responsible economic policy and translates into positive results for citizens, households, and businesses.
• Through fiscal responsibility, we have significantly reduced public debt, approaching the target of 60% of GDP.
• We have created the conditions for full employment, reducing unemployment to 4.9%, the lowest rate since 2008, while increasing the employment rate to 80%.
• We have strengthened the adequacy of incomes: Average wages rose by 13.2% and Social Insurance Fund pensions showed a 6% increase, the highest since 1996. 

In our second year of governance, we have promoted important policies to boost competitiveness and develop key sectors of the economy: 

• Proposals for the tax reform with a focus on the middle class, the younger generation, and the competitiveness of Cypriot businesses, as well as for addressing the issues of housing and low birth rate.
• Reinforcement of the primary sector with an expenditure of more than 100 million euros.
• Renewal of collective agreements in key sectors of the economy through social dialogue.
• A revised strategy for the employment of third-country nationals, as well as the introduction of the Blue Card to attract highly qualified personnel.
• Increase funding to link research and entrepreneurship. 

At the same time, through targeted measures, the Cyprus Ship Registry has recorded an 18% increase, while the tourism industry also set a historic record with more than 4 million visitors and revenues of more than 3 billion euros. 

Ladies and Gentlemen, 

Responsible economic policy ensures stability and allows for substantial and targeted social interventions. Specifically, we have proceeded, inter alia, with the following: 

• Support measures to households and businesses to tackle high prices worth over 760 million euros.
• Interventions on the Demographic Policy worth 100 million euros.
• Seven Housing Policy Schemes focusing on the younger generation, with a budget of 70 million euros. In addition, especially for the refugees, we have significantly improved the Regulations of the Central Agency for Equal Distribution of Burdens, increasing the number of beneficiaries.
• Increase of Parental Leave by one month.
• Extension of Parental Leave beneficiaries with an expansion in the age limit from 8 to 15 years.
• Significant increase of the Child Birth Grant.
• Increase in other social benefits and expansion of beneficiaries, such as the Child Benefit.
• Increase by 30% of the Allowances to Enclaved and Resettled Persons, after 18 years.
• Increase in the allowance for accommodation in homes for the elderly from 745 to 1,300 euros.
• Inclusion of 33,000 households of low-pensioners and single-parent families in the Domestic Use Special Tariff for electricity.
• Cyprus-wide extension of the “Neighbourhood Social Worker” programme. 

At the same time, and to benefit consumers, the bill to set maximum retail prices for essential products was passed into law, starting with bottled water. 

Ladies and Gentlemen, 

Our policies on Education and Health Care, Culture and Sport reflect our commitment to every citizen. In our second year of governance, we have, inter alia, implement the following: 

• Inclusion of more than 38 primary schools in the Optional All-day School programme.
• Gradual extension of the age limit for compulsory Pre-Primary Education from the age of 4 years old.
• Extension of the Tuition Subsidy and Feeding Scheme for Children up to 4.5 years old.
• Introduction of the Technical Gymnasium.
• Introduction of financial education in Secondary Education and career counselling from Primary School.
• Commencement of the installation of air conditioners in our schools.
• Submission of the Artist Status Bill.
• Equal treatment of our athletes participating in the Olympic and Paralympic Games, without any form of discrimination.
• Submission of bills on the Patient Advocate and better supervision of the General Health System (GHS).
• Introduction of a bill on University Clinics, Clinical Laboratories and Rehabilitation Centres.
• Implementation of the innovative programme “Midwife at Home”.
• Implementation of a plan to cover travel, accommodation, and food expenses for patients sent abroad to receive medical treatment and family members who accompany them.
• Launch of projects worth 128 million euros to upgrade the quality of healthcare services and radically improve the infrastructure of public hospitals, with priority given to Accident & Emergency Departments. 

The year 2024 was also a milestone in terms of the effective management of the migration issue. Significant, tangible results were achieved: 

• The number of arrivals decreased by 64% compared to 2022.
• The ratio of departures to arrivals increased from 43% in 2022 to 179% in 2024, ranking our country first among European Union (EU) countries in terms of the ratio of departures to arrivals.
• We have enhanced the Voluntary Repatriations Programme.
• We have intensified inspections to tackle undeclared and illegal work, with automatic withdrawal of benefits.
• The number of people accommodated in the “Pournara” First Reception Centre decreased by 82%.
• We established the Deputy Ministry of Migration and International Protection of the Republic of Cyprus. 

The figures I have mentioned and the praise from the EU are indicative of the effective work that is being done. 

Dear Friends, 

The digital transformation of the country is inextricably linked to increasing productivity, reducing bureaucracy, enhancing competitiveness, and promoting transparency. Our 2024 actions include: 

• Introduction of a fast-track and automated building permit system: For single and two-unit residential properties, the complete planning and building permit process takes 40 days, and for housing complexes of up to 12 units or apartment buildings with 20 flats, the process takes 80 days.
• Launch of the “Digital Citizen” application.
• Provision of new digital services, such as those offered by the Civil Registry and Migration Department.
• Free or subsidised electronic ID cards to facilitate and secure online transactions.
• Implementation of the “Digital Assistant”, the first tool of productive Artificial Intelligence (AI) in the public sector of Cyprus.
• Reduction of the processing time for applications for the minimum guaranteed income (EEE) to 60 days, and, more importantly, the inclusion of over 2,000 beneficiaries into the labour market or training programmes. 

In 2024, we continued to modernise our country: 

• We established the Annual Governance Programme.
• We promoted automatic voter registration and lowering the voting age to 17 years.
• We launched the online platform “εκφραCy”, enabling a two-way communication between young people and the executive power, as well as the “Citizen’s Voice” platform for conducting advisory votes.
• We launched the “Diakivernisi” website to provide centralised and immediate information to citizens regarding the implementation of government projects.
• We established the Commissioner for Gender Equality of the Republic of Cyprus.
• We upgraded the facilities at Lefkosia Central Prison, significantly addressing the long-standing issue of overcrowding.
• We launched the “ELPIS” application to protect victims of domestic violence.
• We initiated the preparation of bills to separate the powers of the Law Office of the Republic of Cyprus and to modernise the Audit Office of the Republic of Cyprus. 

Our political commitment to enhancing the country’s reputation and adopting a policy of zero tolerance towards corruption is equally clear. Among other initiatives, we signed a Memorandum of Understanding (MoU) with the United States of America (USA) on issues related to the detection and prosecution of economic crime with the assistance of the FBI. Additionally, we also launched an international campaign to restore our country’s reputation. 

With the sole focus on the public interest, we have dared to terminate long-standing problematic contracts, while, at the same time, we have negotiated and renewed agreements with significantly improved terms, such as the Agreement for the management of the country's airports. 

As part of the implementation of a roadmap for energy sufficiency and lower energy costs, but also for environmental protection, we have, inter alia, introduced: 

• The Aid Scheme for Installation of Storage Systems in combination with Renewable Energy Sources (RES) projects.
• The Grant Scheme for Energy Upgrading and Competitiveness Enhancement of Large Enterprises.
• The “Save and Upgrade” Grant Schemes for Homes, Small and Medium-Sized Enterprises, and Non-Profit Organisations.
• The establishment of the “Single Service” for the licensing of Renewable Energy Projects.
• The commencement of the installation of smart meters in order to upgrade the electricity network and improve energy efficiency.
• The publication of a regulatory framework for energy communities and the pilot implementation of the Green Community institution-scheme in Kato Pyrgos Tilliria. 

In line with the policy of more affordable energy and wider tax reductions in general, outlined in our tax reform proposal, I announce this evening that the Government has decided to reduce the VAT rate on electricity for domestic use from 19% to 9%. 

At the same time, Ladies and Gentlemen, we have taken targeted action for the exploitation of natural gas in our country's Exclusive Economic Zone (EEZ), with the signing of two important agreements in Egypt for the commercial exploitation of natural gas, while drilling is underway, and results are expected in the near future. 

In order to respond more effectively to natural disasters, we have started to implement a comprehensive plan to modernise Cyprus Civil Defence and improve the 112 emergency call number service under a Single Coordination Centre. We have also introduced a new strict legal framework for fire prevention, and decided to transfer the aerial fire-fighting resources to the National Guard. At the same time, we have ensured that a minimum of 11 aerial fire-fighting resources are available to meet the needs of the fire-fighting effort. 

At the same time, Ladies and Gentlemen, we are working to reinforce all of our country's strengths, to increase our citizens' sense of security and to enhance our status. The activation of the Amalthea plan, the election of the Republic of Cyprus for the first time as a member of the United Nations (UN) Human Rights Council, the successful assumption of the Presidency of the 9 Mediterranean member states of the European Union, the launch of the strategic dialogue with the United States , the US Presidential Determination of eligibility for the Republic of Cyprus to participate in major defence programmes, the opening of diplomatic missions in the Republic of Armenia and the Republic of Kazakhstan, as well as the preparations for assuming the Presidency of the Council of the EU are just some of the measures we have taken to improve our country and ensure its role as a strong and reliable partner in the region, in Europe, and internationally. 

Within the same framework, in the field of Defence and Security, and in order to strengthen the National Guard, we have substantially upgraded the institution of Contracted Soldiers, while we have recently enabled the voluntary enlistment of women in the National Guard. At the same time, we have laid the foundations for the utilisation of the promising Cypriot defence industry by establishing the Defence Industry Council and institutionalising the participation of Cypriot companies in military procurement programmes. 

Fellow Compatriots, 

From the first day I took office, my main objective and my promise to the Cypriot people was the resumption of substantive talks for a solution to the Cyprus problem on the basis of the agreed framework. Our political will, which is acknowledged by everyone, and our concerted efforts have succeeded in activating international interest, creating momentum, and establishing a clear link between Euro-Turkey relations and the developments in the Cyprus problem. 

On Sunday, I will be in Geneva for the expanded meeting as a result of the UN Secretary-General's new initiative, which commenced with the meeting in New York on 15 October. I am going to the meeting with absolute seriousness and with the sole aim of paving the way for the resumption of negotiations from where the point they were left off in the summer of 2017 and achieving the goal of the liberation and reunification of our homeland. The present state of affairs cannot be the future of our country. 

Dear Friends, 

In the two years of governance, we have proved that we do not hesitate to address serious and long-standing problems, but also decades-old pathologies. In a difficult and ever-changing international environment, we have faced challenges and seized opportunities. At a steady pace, with a clear plan, we are moving forward on the path of responsibility and consistency, with the sole aim of serving the interests of all Cypriot people. Two years later, we continue together with new important interventions and reforms, as I have presented in detail in the Annual Governance Programme 2025. 

Together, we are changing Cyprus.

Thank you. 

(NZ/AS/MS/GS/EL)