The government has announced a financial support program of 103 million euros to compensate for the rise in prices | Stockwatch
The Cypriot government announced on Friday a new financial support program for vulnerable groups of the population, up to 103 million euros, to offset the impact of inflation and the war in Ukraine. The support plan, which follows, another for the consequences of the pandemic, in the amount of 192 million euros, was approved on Friday by the Council of Ministers.
In statements after the Cabinet meeting, Finance Minister Constantinos Petrides said that after the pandemic, the country had entered a period of inflation, mainly due to external factors and the war in Ukraine.
He noted that no government can kill inflation at its root, as increased liquidity in the market can give rise to inflationary pressures, leading to a vicious circle of price hikes.
He said the government, “in a sensible and prudent way”, will try to help those in need in a way that will not disrupt fiscal stability. He added that “we are also entering an era where interest rates will rise, which includes an increase in the cost of borrowing and debt servicing by the state itself.”
The Minister indicated that this new package of 11 support measures aims to help vulnerable groups of the population, such as pensioners, low-income households with children under 18, large families, beneficiaries of guaranteed minimum income allowance, but also breeders and producers. of cultures.
He also indicated that the measures concern, among other things, subsidies for childcare services, for childcare costs, for the installation of photovoltaics in houses and the insulation of roofs. , and simplified procedures for applying for a license to install Renewable Energy Systems.
The Minister also announced that the measure to reduce VAT on electricity, as well as the measures already in place for VAT on petrol and heating oil, will be extended until the end of August.
He said the Cabinet also discussed issues such as increasing inspections to stamp out profiteering.