Presidency of the Republic of Cyprus

It is a great pleasure to welcome to Cyprus the President of the European Central Bank, Mrs Christine Lagarde.

Dear Christine, your visit to our country, on the invitation of the Governor of the Central Bank of Cyprus, is of great importance, particularly in view of this important juncture for the European and also the global economy.

During our exchange, I had the opportunity to brief President Lagarde about the current state of the Cyprus economy and discuss with her some of the new challenges that arise, which, of course, also have consequences for the European Union and its Member States, as well as the Eurozone.

As I explained to Mrs Lagarde – and naturally she is very well versed with this information – the significant progress of the Cyprus economy in recent years, which, inter alia, led to the creation of sufficient fiscal buffers, has enabled us to protect livelihoods against health and economic fallout from the Covid-19 pandemic.

Today, we are all faced with the war in Ukraine and the unparalleled crises it creates. The Republic of Cyprus is up against new obstacles, such as reduced tourist arrivals, increased inflation, and rising energy and food prices, all of which undermine the country's growth trajectory.

But, I have to say, we are optimistic that, once again, we will manage to exceed expectations and continue implementing our commitments towards macroeconomic and financial stability and sustainable and inclusive growth, to the benefit of our citizens and business.

Our shared understanding with President Lagarde is that an EU comprehensive plan is once more necessary in order to tackle the uncertainties and enhance our resilience in the challenging period ahead.

Dear Christine, you are a friend of Cyprus who has observed our economy’s fall and rise in recent years, and I trust that your visit today demonstrates our will to work closely together and further strengthen our productive cooperation.

Thank you very much for all that you have done.