Insider / ΚΥΠΕ
Parliamentary parties today called on the government to address a series of measures to address the rapid rise in prices for energy, raw materials and basic goods, which threatens households, businesses and individual sectors of the economy, such as the construction industry.
The problem of rising commodity prices and the effects on inflation was raised at a meeting of the Parliamentary Trade Committee on Tuesday.
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The head of the European Commission Delegation in Cyprus, Myrto Zambarta, speaking to the MPs, spoke of the “perfect storm”, stating that we are facing price increases in general, but also energy prices in particular, due to circumstances, and explained that the The global economy is recovering from the pandemic and consequently demand is rising sharply, while at the same time the severe winters in northern Europe and the particularly hot summers have created huge energy needs for heating and air conditioning, respectively.
“We are facing three facts,” he said. , in terms of natural gas and by 97% in terms of oil, which makes it vulnerable to price fluctuations.
“These three data show us that the transition to green energy is necessary not only for the planet but also for our economy,” she said. Zambarta.
The Commission's priority, he said, is to help vulnerable businesses and families, and to that end it has announced a set of tools that include actions that Member States can implement without the Commission 's prior approval.
In particular, in terms of short-term measures, he said that there is room for cost reduction through targeted tax incentives, as tax rates on energy prices in the EU reach up to 40% of the price of electricity in homes and 30-34% in businesses. He noted that the increases are temporary and prices are expected to stabilize by spring.
Medium-term measures include examining greenhouse gas emission allowance transactions, reviewing the functioning of the EU electricity market, establishing a common gas and storage market with third countries, such as Norway, and increasing investment in RES.
Ms. Zambarta stressed that detoxification from fossil fuels is the only way and that the long-term solution to price volatility and increases is RES.
The General Manager of the Cyprus Maritime Chamber, Thomas Kazakos, commenting on the rumors of a scandal in the increase of transport costs, attributed the price increases to the current situation created by the increased environmental standards that led to the withdrawal of the ship. brought stagnation to productive countries such as China and India, for several months, and then the improvement of the epidemiological situation, the reopening of large ports of supply of consumer and basic goods and the rise in demand, while supply remained reduced. He characteristically stated that out of the 60 thousand ships that traded by sea, 40-45 thousand remained.
“There is a full understanding on the part of the shipping industry in Cyprus for the increased costs, which are transferred to other productive sectors of the economy and of course at the end of the day, to the consumer. “This is purely a matter of simple demand and supply, especially in consumer goods that are transported in a very large percentage by sea and by container,” he noted.
On the part of OSEOK it was reported that due to the pandemic, the cost of raw materials in the construction sector increased between September 2020 and September 2021 by 15% and is not expected to decrease before the middle of next year. At the same time, the cost of a construction has increased by 20%, while some projects face liquidity problems, while there is a risk of stagnation in the construction and completion of new projects.
A PEO spokesman noted that accuracy will not be a temporary phenomenon and that short-term and long-term measures need to be taken, describing the whole situation as critical and urgent. He continued, he should consider the possibility of reducing VAT on electricity, increasing benefits to vulnerable groups and imposing a ceiling to protect the consumer from scandal. He also said that the reopening of the Cereals Committee should be considered.
The SEC stressed that every day that passes without taking measures, its accuracy and impact are multiplied and called for the elaboration of a comprehensive anti-inflation policy, focusing on tax facilities, and the full restoration of the ATA by a political decision of the Government.
The parties propose measures
The Chairman of the Trade Committee, DISY MP, Kyriakos Hatzigiannis. He stressed that there is a huge impact on the consumer who is unable to meet the level of increases and stressed that there should be fairer costing in energy and VAT and at the same time, the implementation of additional national programs. At the same time, he noted that Cyprus can finance actions in support of vulnerable groups by utilizing part of the 200 million euros it has received from the pollution auction system.
AKEL MP, Costas Costa, stated that the government bears huge responsibilities for the price increases. At the same time, he referred to the dramatic effects of rising prices in the construction sector, and noted that the government should move directly to all international steps, especially to the EU, seeking support as a small semi-occupied island, where the transportation of raw materials is done by ships. He also called for intensification of controls by government agencies to tackle scandal in the sale of materials, but also called on the government to expand the socio-economic criteria for inclusion in housing schemes and to focus on low-rent housing projects or rental market on the basis of socio-economic criteria.
ELAM spokesman Geadis Geadis noted that the people do not expect explanations or excuses for the price increase, but expect the state to support the citizens by reducing VAT, reducing the price of electricity and the fuel tax.
EDEK, through its MP Elias Myrianthous, stated that the state should take targeted measures to support vulnerable groups and with targeted taxes on luxury items to seek redistribution of income in favor of the weakest income groups of the population. At the same time, ways should be found to reduce the cost of basic items related to the development of the construction sector, he said, in order not to increase the cost of public works included in the state budget or to cause delays in their implementation.
On the part of DIPA, MP Michalis Giakoumi stated that the impact on households from the price increases is huge and unbearable and asked for a cap on the prices of specific products, such as water, milk and bread, and to consider the possibility of suspending or reducing it. VAT on electricity and fuel. No household, he stressed, should be deprived of basic necessities, food or heating.
