Cyprus Medium-Term Fiscal-Structural Plan for the period 2025-28
Δημοσιεύτηκε στις 01 Μαΐου 2025 | Ενημερωτικό Υλικό | Εκδόσεις, Πληροφόρηση
Regulation (EU) 2024/1263 (the “Regulation”) on the effective coordination of economic policies and on multilateral budgetary surveillance repealing Council Regulation (EC) No 1466/97, entered into force on 30 April 2024, with the aim to promote fiscal sustainability and sustainable and inclusive growth.
The Republic of Cyprus hereby submits its Medium Term Fiscal Structural Plan (“MTFSP” or the “Plan”) for the period 2025-2028, in accordance with Articles 11 and Article 36.1(a) of the Regulation. Based on the transitional provisions, as foreseen in Article 36.1(a) of the Regulation, Cypriot Authorities requested by letter to the European Commission on 04 September 2024 the extension of the deadline for the submission of its Plan until 15 October, given the time necessary to prepare the fiscal and macroeconomic forecasts and conclude the national procedures. The European Commission, with a letter on 24 September 2024, transmitted its agreement in extending the deadline.
The Plan has been prepared in line with the Guidance transmitted to Member States by the European Commission on 20 June 2024, which sets out the information requirements and takes into account the reference trajectory provided by the European Commission on the same date. The analysis and forecasts contained in this document are based on data available until 06 September 2024. The macroeconomic forecasts contained herein have been endorsed by the Fiscal Council. The opinion of the Fiscal Council in the context of the 2025 budgetary process is presented in Annex 2, according to the European Commission’s guidelines.
The Plan was approved by the Council of Ministers on 9th October 2024, according to the relevant national legislation. Given the provisions of Article 36.1(c) of the Regulation and the tighter schedule envisaged for the preparation of the first Plan, a consultation of social partners, regional authorities, civil society organisations and others was not conducted. However, significant number of structural reforms and investments included in the Plan are also included in Cyprus’ Recovery and Resilience Plan, and therefore had already undergone consultation with the social partners and civil society.
The rest of the document is organized as follows. Section 2 gives an overview of the fiscal commitment. Section 3 presents the macroeconomic forecasts, while Section 4 describes the fiscal and budgetary forecasts and Section 5 provide information on contingent liabilities. The Debt Sustainability Analysis is presented in Section 6. Finally, Section 7 gives an overview of the major structural reforms and investments Cyprus is planning to implement in the four-year period, in response to the country-specific recommendations (CSRs) (including under the Macroeconomic Imbalance Procedure) and EU common priorities.
