Speaking during a press conference last evening, Finance Minister Takis Klerides reported that Cyprus’ economy is well on track with European economies as production growth rates during 2001 reached 2.4% compared to 0.6% of country members of the EU.

Mr. Klerides explained that the government’s fiscal policy over the past few years, aimed at improving the standard of living of citizens, achieved through sustenance of long-term stability conditions, that is, low inflation and a healthy balance of payments, with positive effects on businesses and investments. Mr. Klerides explained that the government’s fiscal policy focused on two aspects. Firstly the gradual reduction of public deficit and its abolition by 2004 and secondly improvement of competitiveness.

Cyprus has closed 24 out of 29 chapters of the acquis communautaire and is nearing completion of accession negotiations. From the remaining 5 chapters, the ones on Agriculture, Regional policy and Fiscal provisions and Budgeting are those which country members of the EU have not yet taken a final position on. Chapters on Competition and Taxation are expected to be completed next month.