government

Government gas body , ‘mismanaged’

by
Government gas body , ‘mismanaged’

Lawmakers criticized the Natural Gas Public Company (Defa) for mismanagement and lack of transparency as it presented its 2024 budget to parliament. This budget, amounting to €38 million in projected capital and operating expenditures, is the first since Defa transitioned from a private to a public law entity. Defa, the sole entity authorized to import and distribute natural gas in Cyprus, is seeking to create 36 new jobs this year. The 2024 state funding for Defa will be €12 million, a decrease from €18 million the previous year. The budget includes a €20.5 million allocation for investments in subsidiaries, specifically for the equity of the Natural Gas Infrastructure Company (Etyfa), which is tasked with developing the liquefied natural gas (LNG) terminal in Vasiliko. This project has experienced delays and disagreements with the contractor. Infrastructure related to the LNG terminal is expected to be completed within 2024. Once operational, Defa’s budget is expected to significantly increase, with projected annual revenues from LNG sales at €500 million. However, the LNG import project has faced challenges, including a halt in construction and disputes with the Chinese-led consortium responsible for the project. The completion date for the project has been postponed multiple times, with the current expectation set for July 2024. Concerns were also raised about Defa’s internal organization, including the absence of a job description and organizational chart. Defa officials have been summoned to parliament to address these issues, among others.

Eurozone to phase out energy support measures

by
Eurozone to phase out energy support measures

Eurozone finance ministers decided to gradually phase out energy support measures in 2024 to reduce government deficits. This decision was emphasized during the Eurogroup meeting of finance ministers. The Cyprus government plans to end the reduced consumer tax on car fuel and the subsidy of electricity bills by the end of April 2024. A political agreement on reforming the EU’s economic governance framework was reached in February 2024, with optimism for its early adoption. Ministers provided a cautiously optimistic outlook for the euro area’s economy in 2025, citing a robust labour market and a downward inflation path. However, they acknowledged economic risks due to global uncertainty. The reformed framework aims at strengthening debt sustainability and promoting growth through structural reforms and investment. An overall slightly contractionary fiscal stance is expected in the euro area for 2025, focusing on priority areas like the green and digital transition and defence capabilities, with an emphasis on improving the efficiency, quality, and composition of public spending.

President to meet Holguin again on Saturday

by
President to meet Holguin again on Saturday

President Nikos Christodoulides will meet the UN Secretary General’s personal envoy for Cyprus, Maria Holguin, on Saturday. This meeting is a part of the second round of contacts aimed at finding common ground to restart negotiations on the Cyprus problem. Both sides have shown willingness to explore solutions, which is seen as a positive sign. During her visit, Holguin met with party leaders Nicholas Papadopoulos of Diko and Stefanos Stefanou of Akel. Papadopoulos emphasized that the solution to the Cyprus issue must be based on UN resolutions, high-level agreements, and a bizonal bicommunal federation. He expressed concerns about the Turkish side’s reluctance to restart negotiations, fearing a push towards a two-state solution or recognition of the pseudo state. Stefanou highlighted the need to adhere to the agreed basis for a solution and the importance of resuming negotiations from where they were suspended in 2017. He also mentioned the need for a positive agenda towards Turkey and the Turkish Cypriots, including incentives related to energy issues.

Real estate sector depends on outside factors

by
Real estate sector depends on outside factors

The Cyprus economy has shown strong resilience, recording one of the highest growth rates in the European Union, according to Dr. Giorgos Mountis, CEO of Delfi Partners. The Cypriot economy grew by 2.4% in 2023 and is estimated to grow by 2.8% in 2024 and 3% in 2025. Inflation decreased from 8.1% in 2022 to 3.9%, with further reductions expected to 2.4% in 2024 and 2.1% in 2025. Efforts to contain inflation involved decisions that temporarily affected citizens’ incomes, with interest rate increases placing significant pressure on household incomes. However, optimism exists that the European Central Bank’s decisions will start to change in 2024, potentially leading to a decrease in domestic interest rates. Unemployment is at very low levels, approaching full employment, though many sectors face personnel shortages. The government’s strategies to employ and attract foreign labor could lead to an increase in the country’s population and economic development. The real estate sector remained resilient in 2023, with sales contracts increasing by 16% compared to 2022, reaching the highest level since 2008, driven by increased demand from non-European buyers. Apartment prices in 2023 exceeded those of 2010 for the first time, according to the Central Bank of Cyprus, leading to an increase in properties purchased for rental investment.

Oldest Greek Cypriot diaspora group sends resolution to UK PM

by
Oldest Greek Cypriot diaspora group sends resolution to UK PM

The Greek Cypriot Brotherhood, during its annual general meeting, approved a resolution addressed to UK Prime Minister Rishi Sunak concerning the Cyprus issue. The resolution commemorates the 50th anniversary of the Turkish invasion and occupation of Cyprus, describing it as a failure of international diplomacy and a violation of international law and human rights. It calls on the UK government to remain committed to its obligations to Cyprus as per international and European law, especially in light of a new impetus from the appointment of a personal envoy of the UNSG for Cyprus. The resolution emphasizes the UK’s special role regarding Cyprus, urges the UK to send a message to Turkey similar to its response to the Russian invasion of Ukraine, and calls for the reversal of divisive actions, implementation of UN resolutions, and support for UN efforts to resume negotiations for a solution that would enable the peaceful coexistence of religions. The resolution is signed by the Greek Cypriot Brotherhood President Aris Charalambides and Secretary Andreas Karaolis.

Three Cyprus-registered companies sanctioned by US for al-Shabaab links

by
Three Cyprus-registered companies sanctioned by US for al-Shabaab links

The U.S. Department of the Treasury imposed sanctions on an international fundraising and money-laundering network for the al Shabaab militant group, targeting 16 entities and individuals across the Horn of Africa region, the United Arab Emirates, and Cyprus. The sanctions list includes three Cyprus-based companies: HALEEL FINANCE LTD, HALEEL HOLDINGS LTD, and HALEEL LTD, with registrations in Nicosia and Limassol. These companies were registered within eight months in 2017. This action follows previous U.S. sanctions against a network linked to al Shabaab in October 2022, aiming to freeze any U.S. assets of those targeted and prevent dealings with them by Americans. Al Shabaab, considered a terrorist group by Washington, generates over 0 million a year and has been fighting the Somali government since 2006 to establish rule based on Islamic Sharia law. The State Department highlighted that al Shabaab’s revenues support al-Qa’ida-linked groups globally, funding terrorism and undermining governance.

On This Day: Sun Yat-sen, father of modern China, died in 1925

by
On This Day: Sun Yat-sen, father of modern China, died in 1925

– Sun Yat-sen, the Chinese revolutionary leader and first provisional president of modern China, died in 1925.
– German troops invaded Austria in 1938.
– Poland, Hungary, and the Czech Republic joined NATO in 1999, becoming the first former Soviet bloc members to do so.
– American-born violinist and music teacher Yehudi Menuhin died in Berlin in 1999.
– Serbian Prime Minister Zoran Djindjic was assassinated in 2003.
– In 2005, a Russian sportsman attempted to set a record by staying in cold water for 60 minutes.
– China accepted the resignation of Hong Kong’s chief executive, Tung Chee-hwa, in 2005.
– Bernard Madoff pleaded guilty to the largest fraud in Wall Street history in 2009.
– Radiation levels were checked near Fukushima after an explosion and radiation leak at a nuclear power plant in 2011.
– Researchers claimed to have found a hidden Da Vinci masterpiece in 2012.
– A fatal gas explosion occurred in New York’s Harlem neighborhood in 2014.

Haitian PM tenders resignation after Jamaica talks

by
Haitian PM tenders resignation after Jamaica talks

Ariel Henry, Haiti’s unelected prime minister since the 2021 assassination of the last president, announced he will step down after a transition council and a temporary replacement are appointed. Under his administration, armed gangs expanded their wealth, influence, and territory, leading Henry to seek support from Kenya for a UN-backed security mission. His trip coincided with an escalation in conflict, leaving him stranded in Puerto Rico. Henry’s resignation was decided on Friday, and he will be replaced by a presidential council consisting of two observers and seven voting members from various sectors. Haiti has been without elected representatives since early 2023, and the next elections will be the first since 2016. The U.S. has pledged an additional 0 million to the international force to help fight gangs in Haiti, bringing its total pledge to 0 million. Gang violence has led to a humanitarian crisis, with over 362,000 people internally displaced and thousands killed since 2021. Gang leader Jimmy “Barbeque” Cherizier has called for a “bloody revolution” and criticized the current system as an apartheid system.

Cabinet to discuss subsidy for families of patients sent abroad

by
Cabinet to discuss subsidy for families of patients sent abroad

President Nikos Christodoulides announced that the cabinet will discuss a plan to subsidize travel, accommodation, and food expenses for those accompanying people sent abroad for medical treatment. Additionally, a proposal to create a “patient advocate” will be discussed. Christodoulides emphasized the goal of eliminating the need to send patients abroad as a measure of success for the government and Cyprus, highlighting the importance of providing quality health services domestically. Health Minister Michalis Damianos reported that 1,523 patients were sent abroad from Cyprus last year for various specialized treatments, underlining the state’s responsibility to support these patients and the necessity of international collaborations for immediate patient transfer when needed.

Akel demands cheaper electricity

by
Akel demands cheaper electricity

The opposition party Akel in Cyprus, led by Stefanos Stefanou, has urged the government to reduce electricity costs for households and businesses and has demanded an investigation into the liquefied natural gas (LNG) terminal project at Vasiliko. Stefanou emphasized the need for Cyprus to transition to natural gas for electricity generation to avoid the high costs associated with burning heavy fuel oil, highlighting that Cyprus paid about €350 million in greenhouse gas emissions allowances last year. Akel has proposed several measures to alleviate high electricity prices, including reducing VAT on electricity from 19% to 9%, taxing windfall profits of banks and energy companies, promoting competitive tenders for renewables, and extending electricity subsidies.