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00:00The state of the Cypriot economy right now. How would you characterize things. Well it's quite good actually. We have been through difficulties in the last few years. But this happens economy has achieved remarkable recovery. A growing with the rate of 3 percent of the GDP and we operate with a balanced budget for the last few years so things have have improved significantly. The banking sector also has healed to a significant extent. So we are on a good path. What would you characterize as the key drivers of that. Because obviously there are other eurozone countries that continue to perform quite poorly economically after their bailout. So what what's made it work for Cyprus. Well I would mention a couple of issues first of all. We have some strong promising sectors like tourism and shipping and business services which have performed strongly but we also wear on severity had I mean then very focused in establishing and maintaining a pro-business economic environment. We have not been raising taxes we have been. We have been lowering taxes and offering incentives to to business and investment. Then this has worked and it has the lever these strong rebound of the economy. Let's talk about one sector in Cyprus which is energy and there there is ongoing business for natural gas resources in the countries. What can you tell us about the latest round of bidding. Look we've just concluded indeed the third licensing round in Cyprus and we have managed to attract some of the biggest names of the industry namely we have been able to award the blog to Exxon together with cut up the volume in I from Italy and talent from France. And this goes very far to show the potential of this high price exclusive economic zone not only with regards to our waters but overall in general I would dare say the eastern Mediterranean which is fast becoming an alternative source of supply for the European Union . And just to give you a number to put that into perspective actual fighting Eastern met we have had about 2000 billion cubic meters of discoveries the EU in 2015 consumed about 415 BCE. So you can see that while we have just started with the discoveries the Eastern Med could soon become an alternative source of supply and routes. I dare say to the European Union one potential source of anxiety for anyone thinking of investing in Cyprus is the ongoing the failed peace talks of the stalled peace talks. How is that affecting business. The fact that there is hope in peace talks going into this year. They've since stalled. Where do things stand now and do you see an economic impact from that. Yeah look if he were to happen if we weren't able to find the solution and to reunify Cyprus obviously this would offer a huge boost to economic activity and to invest in it but that of course shows that no finding good investment opportunities and ensuring an economy which which is functioning and performing strongly is not dependent upon that unification. So even though it's we are still engaged in an effort to to to to achieve a solution. What about the reliance upon it. We have shown that the economy can achieve very satisfactory very good growth rates even without the solution and that's that's the main that's the main scenario then that's the main working person added that we shall not have a solution if it comes it will be an over and above boost. And do you see any direct impact on the energy building or the energy sector from the status of the peace talks. I have to say that so far as my colleague has just mentioned we have progressed quite well in everything that we do whether it's for the first or second licensing round indeed now the third. Where did that. Whether it is fully discovered is as we already have in Cyprus by American companies by the way novel to be more than what we might exact. So we will continue down that path while at the same time we will continue to seek regional alliances so that we can create the stable predictable investment environment needed for the offshore activities in the oil and gas industry. I want to turn the attention to politics because of course that's dominating everything I know in the US and in Europe. First of all Brexit the vote for the UK to leave the eurozone has prompted a lot of companies to look for alternate places within the EU to set up business where there especially our financial companies. You talked about the success of Cyprus being owed in part to pro-business stands. Do you see an opportunity for Cyprus to have businesses relocate there from the UK. Yeah. I don't want to use the word opportunity when it comes to a very negative decision of war for the EU one which we fully respect of course but they concede that it does as a negative development. So I wouldn't like to use the word which has a positive connotation. That said the respective of the decision of the of the British people which we respect. Yes we shall continue to work and to thrive in order to improve the competitiveness and the attractiveness of life of Cyprus. We are an excellent destination to do business to set up a base and to invest. So the advantage is that obviously there yeah. And just to complement what was mentioned. It's not like we are positioning Cyprus as an alternative to you the UK rather than as a complement to the UK. So now that UK businesses will be looking for an EU base as well. Cyprus is the ideal location and I have to be frank we're working very closely with the British government exactly to promote that positioning for Cyprus because we have very very many similarities whether it's the law common law or other kind of framework originally. Have you seen businesses where there are hedge funds brokers or anything like that. Talk to you specifically about the opportunity to set up as you put it a complement to their UK operations. When all the time but they wouldn't related especially to Brexit we are in continuous contact with with foreign business across the sector. So there is strong interest and we are seeing companies setting up a base in Cyprus all the time. And obviously this is this is a process which we shall continue supporting with the pro-business policies and the incentives and keeping macroeconomic and political stability . Bigger picture beyond a Brexit. That's not the only country in the EU EU where there is there appears to be some sort of rising anti EU tide although perhaps that's a bit overstated. But from your perspective how how should the leader of EU countries deal with this sort of ongoing threat to the legitimacy of the loss of confidence that people have and the appeal of parties and politicians who want to roll back the project in some way. Yeah I would take the popular feelings very seriously and made accommodation that would be that we would we probably take a pause and reflect then consider very carefully and any any further steps in the direction of European integration especially on European economic policy staying away from unnecessary regulation and rules which do not art but rather that than the competitive ness of of the European economies and take on the league those steps which will enhance the productive capacity of vital economies doing glass probably but doing good the better would be made accommodation. There's been you know for years there's been talk about further integration of the eurozone countries on the fiscal front as a way to prevent this sort of two speed Europe where some countries are thriving and some countries on the periphery are plodding along. Is that something that you think should be on the roadmap and would be very cautious. We have. We have come a long way but we should ensure that than any further steps that are well thought then or always carry with them the popular will. It's no good to making steps ignoring the feelings and the views of our people and we need to re-establish political legitimate legitimacy and democratic legitimacy and that we can not achieve by making good leaps which go in the face of popular opinion. So I would be hesitant. I would be cautious and that would take a cat from steps well such steps which enjoy broad support and how closely do you. Are you paying attention to say the beginning of the French election in April. Well obviously France is a European leader and we shall be closely watching what what comes out from the election and they do hope that the outcome will be one which will enable France but also Europe to continue making positive steps .

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Cyprus’ Georgiades Says Banking Sector Has Healed

Cyprus Finance Minister Harris Georgiades and Cyprus Energy, Commerce, Industry and Tourism Minister Yiorgos Lakkotrypis disscuss the state of the Cypriot economy, the energy sector, the potential reunification of Cyprus, Brexit and the rise of populism in Europe. They speak with Joe Weisenthal on “What’d You Miss?” (Source: Bloomberg)

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