President Demetris Christofias has called for understanding to help meet the financial challenges.

«Our job and duty is to reach the necessary understanding in order to deal with the adverse financial prospects that lie ahead,” the President said today, when asked to comment on a letter by EU Commissioner for Economic and Monetary Affairs Olli Rehn, concerning the state of the economy in Cyprus and four other member states.

Speaking in Limassol, President Christofias noted that “there are rules in the EU, whether we like it or not”, adding that “Olli Rehn is doing his job and we must do ours”.

“Our duty is to confront the crisis and avoid entering the financial stability mechanism, since the opposite would entail adverse consequences for all Cypriot people,” he said.

Asked whether tomorrow’s Cabinet session will discuss a package of financial consolidation measures, the President explained that the government is constantly discussing such measures, adding that the issue at stake is for the measures to be accepted by the social partners and the House of Representatives.

He said that it is still not clear if the social partners are against the measures, adding that consultations have just begun.

Responding to questions about his visit, yesterday, to a drilling rig, off Cyprus’ southern coast, he said the purpose of the visit was to have first hand information about the ongoing activity, which, as he pointed out, is of major concern, not just to the surrounding region, but to the whole world.

Houston-based “Noble Energy” began drilling earlier this year to locate possible hydrocarbon reserves in Block 12, in Cyprus’ Exclusive Economic Zone.

Turkey, whose troops occupy Cyprus’ northern part since they invaded in 1974, does not recognise the Republic of Cyprus.

Following a decision by Nicosia to begin natural gas and oil exploration in its exclusive economic zone, Ankara has deployed warships in the Eastern Mediterranean and has signed an illegal agreement with the Turkish Cypriot regime in occupied Cyprus to delineate what it calls continental shelf.

The government of Cyprus has protested to the UN and the EU Turkey’s moves, saying it has a sovereign right to exploit its natural resources, pointing out that Greek Cypriots and Turkish Cypriots will benefit from any benefits that may come from oil drilling.

Cyprus has signed an agreement to delineate the Exclusive Economic Zone with Egypt and Israel with a view to exploit any possible natural gas and oil reserves in its EEZ. A similar agreement has been signed with Lebanon but the Lebanese Parliament has not yet ratified it.