Cyprus' President, Nikos Christodoulides, announced a package of measures “to support society”, on Thursday, including measures for supporting households and businesses, reduction of energy costs and housing.

In a televised address, President Christodoulides said that this new package of 17 targeted measures, aimed to support Cypriot society, were immediate ones, for financial support of households and businesses, medium term, for the drastic reduction of energy costs while a third category concerns the housing policy.

The measures include, among other things, a subsidy on electricity bills for residential, commercial and industrial consumers, a reduction in the motor fuel excise tax, zero VAT rate on meat and vegetables from 1 December 2023 until the end of May 2024, rent subsidies, raise in child allowance.

They also include the installation of photovoltaics in small and medium-sized houses with a state grant and instalment payments scheme and housing measures such as introducing empty houses in the rental market, urban planning incentives for the construction of residential units, part of which will be granted at an affordable rent or for the construction and rental of residential units at affordable prices, allocation of plots in rural areas to low income families and housing subsidies to young people.

He noted that the measures were within the state's fiscal capabilities.

President Christodoulides referred to the current period, one of geopolitical challenges and uncertainty, as he said, noting that the coronavirus pandemic, the war in Ukraine and the new flare-up in the Middle East, prove how volatile the world is while, at the same time, underline the need for strong reflexes on the part of States to effectively deal with multi-level crises.

He noted that the Government was called upon to manage with responsibility and rationality a particularly complex situation, especially in the energy sector and the wider economy.

He said that his Government continues to be focused and works for the safety and well-being of its citizens, “maintaining the perspective for our country, as well as stability in the wider Eastern Mediterranean region.”

President Christodoulides said that the Cypriot economy remains resilient and strong, thanks to the prudent fiscal policy, and stressed that the recent double upgrade and classification to the investment grade by Moody's, 12 years later, offers opportunities to attract quality investments and, by extent, the creation of new jobs.

He also referred to the Government’s commitment to ensuring conditions for economic development, and that fiscal responsibility, a healthy financial sector and lasting and bold reforms determine the framework of the decisions made.