ΟΙΚΟΝΟΜΙΑ

€200 million additionally requested by the consortium for the terminal in Vasiliko – Why is the Auditor General appealing to the European Public Prosecutor's Office

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€200 million additionally requested by the consortium for the terminal in Vasiliko - Why is the Auditor General appealing to the European Public Prosecutor's Office

The text describes a closed-door session of the Control Committee, where the failures of the state regarding the LNG terminal in Vasiliko were examined. According to the Audit Service, these failures allowed for scandalous and criminal acts to take place. The European Audit Service has bypassed the Cypriot Legal Service and directly addressed the European Public Prosecutor's Office regarding the LNG terminal. The project has a total cost of almost 500 million euros, with 101 million euros coming from European funding. The Audit Service had previously warned about irregularities in the evaluation and awarding of the contract to the Chinese consortium CPP, raising concerns about public interest.

Why CERA increased the EAC's Public Benefit fee by 76% – Who benefits

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Why CERA increased the EAC's Public Benefit fee by 76% - Who benefits

The Regulatory Authority for Energy (RAE) has increased the Public Utility Levy of the Cyprus Electricity Authority (CEA) by 76%, which is paid by consumers through their electricity bills. This decision will take effect from January 2024. The purpose of this levy is to subsidize vulnerable groups. The levy was previously €0.00058/kWh and will now be increased to €0.00102/kWh. The decision was made by the RAE on December 8, 2023. The revised levy will be applied to the electricity bills of monthly consumers starting from the end of January 2024, and for bi-monthly consumers, it will be applied from January 1, 2024 The decision has been posted on the RAE's website for transparency and information purposes.

Before Friday's Cabinet, the decision on Great Sea Interconnector

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Before Friday's Cabinet, the decision on Great Sea Interconnector

The fact described in the text is that there is a proposal for the interconnection of the national electricity transmission networks of Cyprus, Israel, and Greece. The project, called Great Sea Interconnector, aims to connect the networks through underwater cables with a capacity of 2,000 MW. The first phase will involve the electrical connection between Cyprus and Crete, followed by a second phase connecting Cyprus and Israel. The project has received positive evaluation and interest from international investors, including the United Arab Emirates' Investment Fund (TAQA). The total cost of the project is estimated to be around 1.9 billion euros, with funding sought from both the market (approximately 1.2 billion euros) and the European Union's Connecting Europe Facility (657 million euros).

Saudi Arabia abandons plan to increase peak oil production

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The Saudi Arabian national oil company, Aramco, has been instructed by the Ministry of Energy to maintain its maximum production capacity at 12 million barrels per day, instead of increasing it to 13 million barrels per day as previously planned. This decision is not expected to have an immediate impact on production and crude oil exports. The company will announce its investment forecasts when it releases its annual results in March 2023. The decision not to increase production capacity is unrelated to technical issues and the company is prepared to increase it again if requested. This announcement does not reflect any changes in future oil demand scenarios. Aramco is the world's largest exporter of crude oil.

Champion of development is the field of Information Technology – Communication

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Champion of development is the field of Information Technology - Communication

The ICT sector in Cyprus has been the fastest-growing sector in the last decade, with an average growth rate of 15%. It is now in third place in terms of gross value added, contributing 9.6% to the country's GDP in 2022. The sector's total contribution to the economy in 2022 was €2.33 billion, showing a 277% increase in a decade. The success of Cyprus in attracting multinational technology companies is attributed to the government's attractive incentives package and the efficient business facilitation unit. The sector's momentum is expected to continue due to investments in digitalization and the European Union's focus on digital transformation. However, a challenge for the sector is the lack of local talent with the necessary skills, which requires efforts in upskilling and promoting digital education. The top five sectors contributing to Cyprus' GDP are Wholesale and Retail Trade, Financial and Insurance Activities, ICT, Real Estate Management, and Professional, Scientific, and Technical Activities.

Energy and Finance Ministers meeting next week on Great Sea Interconnector

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Energy and Finance Ministers meeting next week on Great Sea Interconnector

The International Energy Agency (IEA) predicts a 2.5% increase in global natural gas demand in 2024. The increase is attributed to colder weather and lower prices. However, the limited new production of liquefied natural gas (LNG) will result in constrained supply. The IEA also highlights geopolitical risks as a major factor of uncertainty for the global natural gas market in 2024. The report mentions Russia's invasion of Ukraine, increased tensions in the Middle East, and concerns about deliberate interventions in critical infrastructure as potential sources of instability.

Makis Keravnos is in favor of ATA, "but there are data that must be weighed"

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Makis Keravnos is in favor of ATA, "but there are data that must be weighed"

The Minister of Finance, Makis Keravnos, expressed his support for the Automatic Tax Adjustment (ATA) institution, stating that it should continue to exist but also be constantly revised. He emphasized that the institution should be revised when there are different economic conditions for the benefit of society and those who benefit from ATA. The statements were made after a meeting with the new President of DEOK, Stelios Christodoulou, who stated that productivity and competitiveness are separate issues from ATA.

Decisions on halloumi after that of the European Court

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Decisions on halloumi after that of the European Court

The Minister of Agriculture mentioned a meeting with all the parties involved under the President of the Republic in order to make decisions on the matter. The government will make decisions on the issue of halloumi in a broad consultation with all stakeholders after February 21, when the decision of the European Court will be issued. The Ministry already has a series of measures through the Rural Development Program, but is also working on others. After the court's decision on February 21, the President of the Republic will convene a meeting with all stakeholders in the halloumi production sector, including cheesemakers, cattle farmers, and goat farmers, where the government's decisions will be announced. The goat farmers will submit their recommendations in writing to the President. The goat farmers are waiting to see the issue discussed in the meeting after February 21. The goat farmers believe that it is feasible to increase goat milk production in order to increase the quota for halloumi.

European Central Bank leaves interest rates unchanged – No signs of easing

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European Central Bank leaves interest rates unchanged - No signs of easing

The European Central Bank (ECB) has decided to keep its interest rates unchanged, reaffirming its commitment to combat inflation. The main refinancing rate, as well as the marginal lending facility and deposit facility rates, will remain at their current levels. The ECB is not considering a change in its policy at this time, as inflation pressures have not yet fully dissipated and many wage negotiations are still ongoing. Investors believe that the ECB is mistaken in its assessment of economic growth and inflation, and expect the bank to make five interest rate cuts starting in the spring. However, the ECB did not signal such a shift in its statement, stating that keeping interest rates at current levels for a prolonged period of time will help achieve the inflation target of 2%. The ECB also emphasized that it will continue to adjust its policy based on economic data. The President of the ECB will provide further details on the decision during a press conference.

In a coalition of 14 Davos countries for green investments, Invest Cyprus

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In a coalition of 14 Davos countries for green investments, Invest Cyprus

The text discusses the importance of capital availability to cover the current financial gap for climate financing. Invest Cyprus will participate in the Climate FDI Coalition, which was created within the framework of the Davos Economic Forum. The Coalition is supported by 14 investment organizations representing 300 million citizens committed to leading investments in climate-aligned development. The text emphasizes that investment authorities can play a crucial role in addressing the financial gap and that the Coalition can explore ways to exchange best practices and provide mutual support. The participation of Cyprus in the Coalition is seen as significant for promoting green development and attracting green investments.