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MP stresses importance of public investments for Cyprus

Cypriot MP Christiana Erotokritou stressed the importance of public investments for Cyprus due to the disproportionate immigration and demographic pressures the country is facing and the adverse effects of climate change. 

Erotokritou who is the President of the Cyprus House  Finance and Budget Committee, intervened in Budapest during a meeting of the Inter-Parliamentary Conference on Stability, Economic Coordination and Governance in the European Union.

In her intervention regarding Cyprus, she noted that the country is on a steady path of public debt reduction, maintaining healthy fiscal surpluses, however, it presents a large current account deficit.

She pointed out that the country-specific recommendations of the European Commission for Cyprus highlight the imperative need for full and timely implementation of the Recovery and Resilience Plan to reduce the country’s excessive dependence on oil and accelerate the completion of the necessary reforms and investments.

In this context, Erotokritou said it is important to have public investment for Cyprus due to the disproportionate immigration and demographic pressures the country is facing and the adverse effects of climate change.

Erotokritou stressed that the key challenge is to balance fiscal discipline and sustainable development, ensuring that fiscal responsibility, sustainable development and social cohesion go hand in hand and that the economic governance framework contributes to addressing current and emerging challenges of the EU and shaping a more hopeful future for all European citizens.

Energy Policy In Cyprus: Balancing Immediate Relief With Long-Term Strategic Investment

Cyprus is facing a key moment in its energy policy, as rising electricity costs continue to put pressure on households. Constantinos Constanti, President of the Scientific and Technical Chamber (ETEK), outlined a two-track approach combining short-term relief with longer-term structural changes.

Immediate Relief Measures

Constanti said short-term measures are needed to ease pressure on consumers. This includes adjustments in the competitive electricity market to ensure that cost benefits from renewable energy projects reach households.

He pointed to modern photovoltaic parks and private storage systems, which operate at lower cost than traditional generation. Part of these gains, he argued, should be reflected in lower electricity prices, especially as consumers continue to bear the cost of broader energy investments.

Long-Term Strategic Solutions

Beyond immediate relief, Constanti highlighted the need to review how carbon costs are calculated in the wholesale electricity market. In Cyprus, carbon costs account for around 19% of the average household electricity bill, compared to an EU average of 11%. This gap points to structural issues in the system that require policy changes. He said long-term solutions will require significant public investment to address these imbalances and support a more efficient and sustainable energy system.

Enhanced Support For Vulnerable Consumers

Constanti also called for a more structured approach to supporting vulnerable households. Current support mechanisms, which rely heavily on applications and co-financing, may not reach those most in need. He suggested creating a centralised system to identify households at risk of energy poverty and prioritise targeted measures. These could include replacing energy-intensive appliances and introducing practical efficiency upgrades that reduce costs in the short term.

Transparency in how energy-related revenues are used is also key, he added. Redirecting part of these funds back to households could help reduce costs and strengthen the social impact of energy policy.

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