The interesting data presented in the study of the National Council of Economy and Competitiveness, highlight once again the accumulated pathogens faced by the Cypriot economy. Pathogens that are not new, but it seems that with our accession to the EU and later to the eurozone, they have become more intense.
From the study we can draw the following conclusions:
Several important indicators have slipped since our accession to the eurozone. Among them are productivity, per capita income, competitiveness, inequalities.
State mechanisms have been and remain weak in adapting to the new European-competitive environment.
State institutions are seriously ill, with the main problem being the rapid rise of corruption. The previous economic model, which was based on easy and fast enrichment, was also the main reason for the creation of the banking crisis in 2013, with deficit supervision and political intervention.
It is clear that in order to change the current situation and achieve the ambitious goals of a sustainable and long-term strategy for 2035 as set by the National Council for Economy and Competitiveness, radical cuts must be made at all levels of society. Essentially a new social contract is needed. Without social and political compromises the situation will be unchanged.
The challenges of digital transformation, labor shortages in certain sectors, demographic change, the fact that we are lagging behind in research and development spending, heaps of pending reforms and most importantly the solution to our political problem, are the issues that we need to address through strategic planning. If we adopt the policy we have been following for decades regarding the Cyprus problem, then we are doomed. Not only will we not meet the goals we have set but the rest of the EU countries will overtake us with mathematical precision. What is needed is a plan and more, politicians need to stay away from designing this new economic growth model. It is the best service they will have to offer for this place.
