Newsroom
President Nicos Christodoulides reflected on his administration’s accomplishments during a televised sit-down with journalists, marking two years since he took office. In a wide-ranging discussion, he addressed key economic, social, and political milestones, emphasizing that his government has tackled longstanding issues while keeping its promises.
“We have set the bar very high, and we are going above the bar,” he said, highlighting Cyprus’ economic resilience, social reforms, and governance improvements.
Economic Growth and Fiscal Stability
President Christodoulides underscored Cyprus’ economic strength, pointing to the country’s recent upgrade to investment-grade status after 13 years. The economy grew by 3.4% in 2024, one of the highest rates in the Eurozone. Unemployment fell to 4.9%, its lowest level since 2008, while employment neared 80%.
He also announced tax reforms aimed at supporting the middle class and incentivizing women’s participation in the workforce. Additionally, the government is preparing measures to encourage the return of Cypriots from abroad through tax incentives.
Addressing Rising Costs and Energy Reform
With the cost of living a major concern, Christodoulides outlined his government’s efforts to alleviate financial pressure on households. He announced a reduction in VAT on electricity from 19% to 9%, effective from April 1 for one year. Additionally, the administration has invested over €760 million in social support measures.
On energy, the president stressed that the long-term solution lies in battery storage for photovoltaic systems and the transition to natural gas. He projected a 30% reduction in electricity costs once the Vasilikos terminal is completed by the end of 2025.
Social Policies and Public Services
Christodoulides noted that wages have risen by an average of 13%, while social spending has increased by 5.3%. He highlighted efforts to tackle demographic challenges, including targeted housing policies and increased parental leave.
Education and healthcare also remain priorities. He confirmed ongoing negotiations with teachers’ unions regarding evaluation reforms and announced that oversight of the General Health System would move to the Ministry of Health. A Patient Advocate role has been established to ensure citizen concerns are addressed.
Migration and Security
Turning to migration, the president declared that the government has effectively addressed the issue, with arrivals down by 64% since 2022. He credited this to stricter policies and the establishment of the Deputy Ministry of Immigration and International Protection.
On national security, Christodoulides emphasized efforts to modernize civil defense, upgrade emergency services, and ensure fire prevention. He also highlighted Cyprus’ growing international presence, citing diplomatic advancements with the U.S. and the EU, and new diplomatic missions in Armenia and Kazakhstan.
The Cyprus Issue
The president reaffirmed his commitment to resuming negotiations for a Cyprus settlement. He emphasized that his administration has successfully revived international interest and linked the Cyprus problem with broader EU-Turkey relations.
He also announced plans to travel to Geneva in pursuit of restarting talks from where they left off in 2017, stressing that his goal remains a fair and lasting solution.
Looking Ahead
Reflecting on his tenure so far, Christodoulides stated that his government has implemented 90% of its key interventions while tackling deep-rooted problems.
“With a steady pace and clear planning, we are working in the interests of the many, not the few,” he said. “Two years later, we continue together with major reforms and interventions. Together, we are changing Cyprus.”
*With information from CNA
