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“Cyprus National Reform Programme 2023” (Report by Directorate General Growth, Ministry of Finance, Republic of Cyprus to the European Commission, April 2023).

Cyprus’ National Reform Programme (NRP) has been prepared based on the Guidelines issued by the European Commission in November 2022. It considers the priorities set out in the 2021 Annual Sustainable Growth Survey, published in November 2022, as well as the Commission Staff Working Document on the Analysis of the Recovery and Resilience Plan (RRP) of Cyprus, which identifies the Commission’s assessment of the main economic and social challenges and macroeconomic imbalances of Cyprus. In summary, the main reform priorities presented in the NRP relate to improving the business environment, enhancing research and innovation to support productivity growth, promoting the diversification of the economy, safeguarding the soundness of the banking system and financial stability, addressing challenges and inefficiencies in the public sector, addressing labour market, education and skills and social challenges, strengthening the resilience and capacity of the health system and facilitating the green and the digital transition. These priorities and the policies and measures associated with them fall within the government’s efforts to establish a new growth model aiming at sustainable long-term growth. They are in line with the new Long-term Strategy for Competitiveness and Sustainable Growth prepared by the Economy and Competitiveness Council, through support by DG Reform with the endorsement of the Minister of Finance. The current NRP also provides an overview of progress in the achievement of the Sustainable Development Goals in Cyprus, with reference to the main contributing measures. The tourism sector exhibited an unexpected positive outturn with revenues reaching 91% of the pre pandemic levels and expected to cover the remaining part in 2023. This was due to the measures taken by the Deputy Ministry of Tourism in order to address the devastating consequences of the COVID-19 pandemic on the sector, and ensure the livelihood of local communities and population segments, which relied on tourism profits (presented in the next section).