DISY MP, Maria Kyriakou stressed the need on Monday to boost the foreign investments and the foreign companies that are based in Cyprus. Speaking before the House Commerce Committee, Mrs. Kyriakou said that although most EU newcomers have increased the foreign and European investments, in Cyprus investments have dropped. “Cyprus has lost its glamour. We see foreign reports talking about the golden era of Cyprus that now has gone by, while Luxemburg and Malta are constantly gaining ground”, she noted.

Mrs. Kyriakou also referred to the preparation of a study for the revaluation of the stance on the tax ratios, which will restore Cyprus as an emerging International Financial Center. “We must also take into account the Report on the Competitiveness of the World Economies 2005-2006”, she added.

The study refers to the most significant problems that a foreigner faces when transferring his business in Cyprus. “The problems are the ineffective state bureaucracy, the access to funding, the obstacles from the employment rules, the unsatisfactory infrastructure, the poor labour practice, the unstable policy and the tax regulations”, she said.

Mrs. Kyriakou finally recommended that the state should give incentives to the sectors that Cyprus has comparable advantages. “In this way, Cyprus will become an International Trading Center again, especially in the sector of services”, she concluded.