Economy under pressure: Business calls for urgent anti-crisis measures in Cyprus

Enver Mamülcü, President of the Cyprus Turkish Businessmen Association (İŞAD), has issued a warning regarding the escalating economic crisis and called on the authorities to immediately adopt comprehensive measures.

Speaking on Gündem Kıbrıs, he noted that tensions in the Middle East, particularly the conflict involving the US, Israel, and Iran, are putting significant pressure on global energy markets. According to him, rising energy prices and supply chain disruptions have already led to increased costs for food and goods, directly impacting the TRNC economy.

Mamülcü emphasized that under current conditions, it is urgent to implement an austerity package alongside measures to increase revenue. He also proposed the creation of an anti-crisis group featuring representatives from all sectors to develop short- and long-term solutions.

He paid particular attention to the structure of the economy, noting that dependence on public finances makes the market vulnerable. In his view, transitioning to a production-oriented model is a key condition for sustainability. Meanwhile, a possible wage freeze, although considered an austerity measure, could lead to a decrease in consumer activity and further price hikes.

İŞAD has already prepared a series of proposals, including strengthening financial discipline, expanding the tax base, and seeking additional revenue sources. Reforms aimed at reducing business operating costs were also named among the priorities.

Separately, Mamülcü highlighted the importance of developing renewable energy, specifically incentivizing solar energy use, as electricity costs remain one of the primary expenses for companies.

Experts warn that without prompt steps from the authorities, pressure on the economy and the population's standard of living could continue to grow.