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| As of 30 June 2018 |
A long-delayed bill creating a Cyprus hydrocarbons fund will be put to parliament for a vote, with the aim of utilising profits from natural gas for future generations to enjoy but there are fears the cash cow will be abused.
The government submitted the bill in 2015 but it got shelved as it fell victim to politics and confrontation between the parties.
While a general consensus was built amongst political parties that natural gas revenues should be set aside for future generations through the creation of the Hydrocarbons Fund, economists and some MPs have expressed fears that it will become a “fiscal hole filler”.
A University of Cyprus professor and energy policy expert said that while MPs are ready to vote in the bill, extra powers will be given to the Finance Minister and loopholes introduced.
“My fear is that we may see the Hydrocarbons Fund having the same fate as the Social Insurance Fund reserves which have been spent through the state budget,” said UCY professor Constantinos Papaloucas.
