The Brexit Effect: How it will challenge Exportation and Tourism in Cyprus
Cyprus and Great Britain have a history together and even to this day they undoubtedly have close financial relations. The eventual Brexit (exit of Britain) from the EU will indeed impact directly the political and economic conditions of Cyprus. The impact will be felt despite Cyprus’ countermeasures.
Once the withdrawal from the EU happens, it will complicate exportations from Cyprus to the UK due to the fact that Cyprus is one of the UK’s main supplier of goods and various services. What’s more, both countries financial services collaborate closely because Britain has been Cyprus’s main source of tourism for many years. So what will be the financial relations between the UK and Cyprus? How will this affect the economy of Cyprus in the immediate future?
Each nation finds a way to fight through its problems and Cyprus finance sectors believe that the inevitable consequences of Brexit will be manageable and will depend on the exchange rates of both currencies. Following the aftermath of Brexit, Great Britain will logically continue to seek financial partners and do business with EU members. This could mean that Cyprus may become an alternative destination for UK companies to relocate their headquarters in order to retain benefits that an EU passport ensures. This remains to be seen.
A healthy Cyprus future: National Health Scheme implemented
From March of 2019, income earners will by law, have to contribute a portion of their wage to the National Health Scheme (GESY). This newly implemented scheme may seem irrelevant because some individuals living in Cyprus will have no choice but to take out private health insurance or simply pay for their healthcare themselves. This includes a large number of British retired pensioners and non-EU students.
What could be the issue for pensioners since they may have a European Health Insurance Card (EHIC) that allows medical treatment in governmental hospitals within Cyprus?
Well, even though the UK is going through Brexit negotiations, they have provisionally agreed that British citizens already living in EU countries like Cyprus will be able to keep their EHIC during the implementation period, post-Brexit. These individuals will continue to have and use the EHIC, only if the EU and UK officially agree to this agreement before the withdrawal day. On a more positive note, the current scheme is designed with the people in mind and more products could be created to satisfy the needs of everyone living in Cyprus.