In accordance with the provisions of the Stability and Growth Pact, the Republic of Cyprus submits its Stability Programme (SP) for the period 2020-2023 as approved by the Council of Ministers on 7th May 2020. The SP has been prepared in line with the minimum guidelines issued by the European Commission for streamlined Stability and Convergence Programmes for the 2020 European Semester process, in light of the exceptional economic uncertainty and the severe constraints that Member States are currently working under. The minimum guidelines are in line with the requirements of Council Regulation (EC) 1466/97.
The SP constitutes the national medium-term fiscal plan, in in accordance with Regulation (EU) 473/2013, and should be read in conjunction with the National Reform Programme (NRP), adopted by the Council of Ministers together with this Stability Programme, which outlines the main reform priorities of the Government that aim to address the macroeconomic challenges as described by the European Commission in its 26th February 2020 Country Report, describing the progress made in implementing the country-specific recommendations made by the Council of the European Union in 2019 and reports progress on the national targets within the context of the EU2020 Growth Strategy.
As required by the European Semester, the SP and the NRP have been simultaneously composed and presented to the European Commission.
The analysis and forecasts contained in this document are based on data available up to 31st March 2020. The macroeconomic forecasts contained herein have been endorsed by the Fiscal Council.