Cyprus bets on solar power among other measures to revive economy

Apr 23, 2013 - Cypriot President Nicos Anastasiades on Friday said that the country intended to speed up solar power installations and launch subsidies for the sector, while introducing a set of measures aimed at economic growth.

In March the country agreed to a huge rescue package from the euro area and the International Monetary Fund under the condition that Cyprus introduced a tax on bank deposits, carry out wage cuts and also dispose of certain assets and gold. Now the gross domestic product is expected to fall by 8.7% in 2012.

Anastasiades was quoted by local and global media as saying that one of the government moves to overcome the tough situation would include solar power investment. The president calculates that the country could save EUR 51 million (USD 66m) per year by tapping its solar power potential. The sector can also create as many as 650 jobs, Bloomberg said, citing the government calculations.

Other measures to be undertaken include tax breaks to companies that take on new workers for no less than a year and the opening of more casinos to give a boost to the tourism sector. In addition, Cyprus will provide partial subsidies to ensure salaries for 6,000 unemployed if they find a place in the tourism sector and will also grant state and church-owned land to young people for cultivation, according to a report by the Associated Press.

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