Economist Tasos Yiasemides has addressed speculation surrounding his possible involvement in the 2028 presidential elections, while also highlighting the economic challenges facing Cyprus, including the cost of the Great Sea Interconnector (GSI), rising energy pressures and the need for stronger European support measures.
Speaking on Politis radio, 107.6 and 97.6, during the programme Defteri Matia with Andri Daniel, Yiasemides was initially asked to comment on reports and behind-the-scenes discussions linking his name to the next presidential election.
Yiasemides on a possible 2028 presidential bid
The economist stopped short of confirming any intention to run for President of the Republic, although he did not explicitly rule out the possibility.
He said there was nothing specific to comment on at this stage, adding that he was following media reports and developments.
Asked whether he was pleased by the recognition his name was receiving, Yiasemides said the issue was not one of personal satisfaction, but rather about the work being carried out.
He stressed that those involved in economic analysis had a responsibility to put forward proposals and explain developments to the public in simple terms, enabling the necessary policy interventions to take place.
GSI: ‘We need to see the final bill’
Turning to the Great Sea Interconnector (GSI), the planned electricity link between Cyprus and Greece, Yiasemides stressed the importance of moving from discussions to practical implementation, while expressing hope that no further political obstacles would emerge.
He said the relevant study should be completed as soon as possible to establish the project's actual cost and the economic benefits it could deliver to Cypriot consumers.
“We need to examine the final study to ensure that the cost is not disproportionate for the Cypriot consumer and that the benefits are in line with expectations,” he said.
Yiasemides added that ending Cyprus’ energy isolation would represent a positive development, bringing significant strategic advantages.
Commenting on US involvement in the project, he noted that the GSI had both an economic and a political dimension, linking it to Europe's broader efforts to secure alternative energy sources.
Nevertheless, he insisted that a clear picture of the final cost was essential before the project could proceed, with both its financial implications and strategic benefits taken into account.
Oil prices and inflationary pressures
Yiasemides linked inflationary pressures in Cyprus and across Europe to developments in the energy sector, highlighting the direct impact of geopolitical tensions on prices.
He explained that restrictions on oil and natural gas supplies, combined with the situation in the Middle East and shipping disruptions around the Strait of Hormuz, were creating uncertainty and pressure in international markets.
He noted that oil prices had eased over the previous week amid expectations of a possible resolution to the issue involving Iran.
However, he warned that the future direction of energy prices would depend largely on political decisions.
If the uninterrupted transportation of energy products were restored, prices could gradually stabilise, he said. Otherwise, they could begin rising again.
Europe ‘weak’ in responding to the energy crisis
The economist was particularly critical of the European Union's response to the financial pressures facing households and businesses.
“Europe appears weak in taking specific measures,” he said.
According to Yiasemides, disagreements between member states, particularly between northern European countries and other parts of the bloc, were making it difficult to reach meaningful decisions.
He warned that several European countries could face a difficult winter, with energy poverty representing a significant challenge for households.
Artificial intelligence and volatility in financial markets
Commenting on recent turbulence in US stock markets, Yiasemides said investment in artificial intelligence companies had increased considerably in recent years.
He explained that concerns about a potential stock market correction had already been growing, with the outcome of the US elections potentially acting as a trigger for declines in technology shares.
He also highlighted uncertainty surrounding investment in data centres, which provide essential infrastructure for the development of artificial intelligence.
Despite the recent pressure on markets, he noted that there were signs of stabilisation.
A Cyprus settlement could create new economic opportunities
Commenting on the trilateral meeting on the Cyprus problem taking place on the day of the interview, Yiasemides said that any progress towards a settlement could create positive prospects for the island's economy.
Referring to assessments by credit rating agency Fitch, he argued that a potential solution could remove political and economic obstacles, creating more favourable conditions for new investment.
He also highlighted the economic opportunities associated with the reconstruction of specific areas, which could stimulate business activity and support broader economic growth.
Such a development, he stressed, could help improve living standards for both Greek Cypriots and Turkish Cypriots.
