The slow economic recovery of most major economies following the pandemic; the urgent need to address climate change; the tackling of unprecedented inflationary pressures; the insecurity of energy and grain supply; together with social instability; was described by the IMF as "The Perfect Storm". This is the scenario in which this year's budget was presented in. Regardless of all this, however, we remain steadfast in our vision to further enhance the quality of life for our citizens based on a sustainable economy and social justice.

We have no illusion that combining economic growth, environment protection and social fairness, even at the best of times, is hard to achieve, let alone under the conditions of a "perfect storm". Nevertheless, the strategy laid down by the Minister of finance is clear. We shall continue with fiscal responsibility and sustainability, while prioritising the well-being of the people and the businesses.

The budget presented last Monday was an exercise in strategic thinking and planning, accompanied with timely and sufficient action where needed. Our critics thought that the current international predicaments will limit our capacity to change, but how wrong they were. They under-estimated the confidence gained from the COVID 19 experience. The pandemic taught us, that in times of crisis, Government needs to stimulate the economy and support the people, as opposed to taking austerity measures. We chose the former road, one which is less sought by conservative Governments, but which for us, is the natural choice. We bounced back once, and we will do it again. This budget is a testimony that the way we do economics and social policy, not only works, but it also gives us the momentum to keep on course for an integrated approach to sustainable development.

The social welfare measures top the priorities list of this Government with a staggering 608 million euros going directly to fight inflation by subsidising the cost of energy and grain, together with €9.90 per week cost of living allowance to all workers. A further 65 million will go to circa 96,000 pensioners, while 41,000 families shall benefit from 5.6 million euros in the form of an increase in children's allowances.

Government is also seeking to address specific cohorts within the population that would need special assistance. The new mechanism that calculates the cost-of-living increase for those in vulnerable situations, does specifically that. An estimated 80,000 individuals shall benefit from the most socialist of the measures, a measure which is designed not only to compensate for the cost-of-living increases, but also to ensure social security for the most vulnerable. 

First time buyers will now benefit from a grant of 10,000 euros spread over 10 years, while those in rented accommodation shall benefit from an increase in rent subsidies. The carers grant to parents of disabled children, is being increased from 500 euros to 4,500 euros per annum.  A further 4.2 million euros shall go for the independent community living scheme, for people with disabilities, tax credits granted to parents of children needing therapy, foster care allowance, together with improved rates in the tapering of benefits system as well as specific measures that augment the quality of life of pensioners who do not qualify for a full pension. In line, 8 million will be allocated to address past anomalies.

Solidarity measures are not an add on, or a nice to have in a strategy for development. Social policy is central and intrinsic for a successful transition to a sustainable economy and for the well-being of all our citizens.

This budget defines who we are as socialists who truly believe in social justice and we are proud of it.