Cyprus News Agency: News in English, 10-07-14

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From: The Cyprus News Agency at <http://www.cyna.org.cy>

CONTENTS

[01] SPOKESMAN - ECONOMY

[02] FM OSCE MEETING

[03] CYPRUS INFLATION

[04] CYPRUS GREEK STRIKE FLIGHTS

[01] SPOKESMAN - ECONOMY

Speaking here Wednesday, after a Cabinet meeting and commenting on a decision, taken by the EU Economic and Financial Affairs Council (ECOFIN), to begin an excessive deficit procedure for Cyprus, Stephanou pointed out that the Republic of Cyprus is at the first stage of this procedure.

We are at the stage of the recommendations, we are taking into account these recommendations and we are also taking measures, he said, noting that in other EU countries like Greece tough measures were imposed on them.

The Spokesman assured that the government will continue to implement its policy in order to achieve the targets that have been set by the EU, to bring the budget deficit below 3% of the GDP by 2012.

Stephanou pointed out that the reason that ECOFIN decided to begin an excessive deficit procedure for Cyprus is because of the global economic crisis and external factors. The EU notes that Cyprus, like other EU members, has given money to boost the economy and encourage growth, he added.

The Spokesman stressed that in the case of Cyprus and Denmark, the EU recognises that the deficit is the result of external factors, and asks these countries to reduce their deficit in a medium term period, by the end of 2012. On the other hand, he noted, the EU asks Bulgaria and Finland to bring their deficit below 3% immediately, within 2011.

Asked whether the government is considering an increase in Value Added Tax (VAT) on companies and real estate, Stephanou clarified that at the moment nothing can be said for sure.

We will discuss the matter and consult on how we can increase the state revenue in a socially fair way. At the same time, we continue our effort with the measures we have adopted, in order to have results, he said recalling that the bills on tax evasion are still pending before the House.

The EU Economic and Financial Affairs Council (ECOFIN) decided Tuesday to begin an excessive deficit procedure for Cyprus, Finland, Bulgaria and Denmark.

ECOFIN said that 2012 is the Cypriot government`s deadline to bring the budget deficit below 3% of GDP. According to the data given by the Cypriot authorities in April, Cyprus deficit reached 6.1% of GDP in 2009.

ECOFIN urged Cyprus to limit its deficit to 6% by the end of 2010 and then reduce it by 1,5% of GDP yearly until it reaches below 3% in 2012 the latest.

[02] FM OSCE MEETING

Foreign Ministers and other high-level representatives from the 56 OSCE participating States will consider matters related to security in Europe and the OSCE role.

According to an official press release, the main issue of the Meeting will be the next steps in the dialogue for the Euroatlantic and Euroasian dimension of security and cooperation. Participants will discuss the most important challenges in the above framework and exchange views on drafting a new common strategy.

On the sidelines of the meeting, the Cypriot Minister will meet the Foreign Minister of Kazakhstan. He will also hold a series of bilateral meetings with his other counterparts.

[03] CYPRUS INFLATION

According to figures, released by Eurostat, the statistical office of the European Union, the annual inflation in Cyprus was 2,1% in June 2010, compared to 1,8% in May. In Greece, the annual inflation slightly decreased by 0,1%, falling from 5,3% in May, to 5,2% in June.

As regards the Euro area, annual inflation was 1.4% in June 2010, down from 1.6% in May. A year earlier the rate was -0.1%. Monthly inflation was 0.0% in June 2010. EU annual inflation was 1.9% in June 2010, down from 2.0% in May. A year earlier the rate was 0.6%.

In June 2010, the lowest annual rates were observed in Ireland (-2.0%), Latvia (-1.6%) and the Netherlands (0.2%), and the highest in Greece (5.2%), Hungary (5.0%) and Romania (4.3%). Compared with May 2010, annual inflation fell in fifteen Member States, remained stable in four and rose in eight.

[04] CYPRUS GREEK STRIKE FLIGHTS

Adamos Aspris, Hermes Airports Public Relations and Communications Manager, said that unfortunately, due to the new four hour strike by air traffic controllers in Greece, the flight schedule to and from the International Airport of Larnaka is expected to be affected. In particular, five departures and six arrivals are expected to be affected.

Aspris announced that Cyprus Airways flights 312 and CY 313 have been cancelled, and the rest of the flights, which are affected by the strike, have been rescheduled at different time. He also asked those whose flights will be affected to get in touch with their travel agents and the airlines for the latest information on their flights.

He said that flights to and from Paphos International Airport are not affected by the strike.

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