Insider Economy Cyprus almost came under EU supervision

Cyprus almost came under EU supervision

Cyprus had almost come under EU supervision due to its excessive deficit after the implementation of the Co-operative Central Bank decision which rocketed the deficit projection at 4.8% of GDP. This exceeded the maximum 3.0% of GDP by 60%.

Informed sources told Phileleftheros that, on a technocratic level, Commission services considered that Cyprus (plus three other Member States) should come under “excessive deficit procedures” provided in the bloc’s Stability and Growth Pact.

However, Commissioner Christos Stylianides argued during the debate carried out on a political level at the College of Commissioners on May 29 that Cyprus’ economy has already returned to levels agreed by the Stability and Growth Pact. And, therefore, it would not be correct – for formalities only – for Cyprus to come under excessive deficit procedures and – in effect – under supervision. The leadership of the Commission had backed Stylianides’ arguments, according to an informed source.

If a state exceeds the maximum government deficit, that is 3% of GDP, then it is obliged to enter a supervision process for a calendar year, with whatever this may imply. However, the interventions that took place prevented the excessive deficit procedures from being applied in the case of Cyprus.

A letter sent by Finance Minister Harris Georgiades, from whom the Commission had asked clarifications, played a big role in this. The Minister had underlined the island’s 1.8% surplus of GDP in 2017, and explained that the 4,8% deficit in 2018 was due to the implementation of the Co-op bank decision.

He also stressed that, according to Commission forecasts, the Cypriot economy will have a surplus of 3% of GDP in 2019 and 2.8% of GDP in 2020. The Finance Minister’s letter was sent on May 31, two days after the meeting of the College of Commissioners.

 

Read more:

https://in-cyprus.com/technical-committee-on-cultural-heritage-eu-and-undp-plant-2500-trees-to-offset-carbon-emissions/

Top Stories

Famagusta Hospital: 6 to be discharged, 4 admissions

Six more patients are to be discharged from Famagusta General Hospital the referral hospital for coronavirus, after their second tests came back negative. The Cyprus...

Another 30 people test positive for Covid-19

Another 30 people have tested positive for coronavirus, the Health Ministry announced on Saturday, a decline compared to yesterday's 40 cases. This brings the total...

UK coronavirus death toll rises to 4,313, up 20% on day earlier

The United Kingdom's hospital death toll from the coronavirus rose by 20% to 4,313 at 1600 GMT on April 3, the health ministry said. As...

Empty street is seen on Times Square

An empty Times Square is seen on the street following the outbreak of coronavirus disease (COVID-19), in New York City, U.S., March 18, 2020.

Top U.S. watchdog vows ‘aggressive’ oversight of Trump administration after intel firing

The top U.S. federal watchdog vowed on Saturday to continue to conduct "aggressive" independent oversight of government agencies, after President Donald Trump fired the...

Taste

Village olive pie

Mix the yeast with the lukewarm water and put it aside for about 12-15 minutes to settle.  Sift the flour with the salt into...

Skordalia (Garlic paste)

Rinse the potatoes and place, unpeeled, in a saucepan. Cover with water, add salt and allow to simmer for 20-30 minutes until soft. Drain,...

Village salad

A must-have with every meal is a village salad. You will find it in every tavern or greek restaurant you visit in Cyprus. Make...

Courgettes with eggs

Heat the oil in a frying pan and fry the courgettes at a medium heat until they soften. Add salt and add the eggs....