Cyprus President Nicos Anastasiades has called on the political parties not to undermine the country`s economic prospects by rejecting government reform bills.

His remarks came as the Parliament rejected last week government bills on reforms in the civil service, including a bill that would have put a ceiling on increases in the public sector wage bill. The House also rejected a bill on funds allocated for privatisations.

Addressing a ceremony hosted by the Cyprus Chamber of Commerce Industry and Tourism, President Anastasiades said he is convinced that economic growth would be consolidated “if we remain consistent and focused on the effort.”

In a speech delivered by Finance Minister Harris Georgiades, the President called on political parties to show responsibility.

“We should not jeopardise all that we have arduously achieved in the past few years. Rerjecting reforms and positive changes is an act that undermines the prosperity of our citizens and the country’s prospects,” he said.

After concluding a three-year economic adjustment programme last March, Cyprus returned to a path of economic recovery in 2015. Economic growth is projected to pick up pace in the next three years.

The President stated that in 2016 the Cypriot economy is expected to grow with a rate close to 3% of GDP, one of the highest growth rates in Europe.

President Anastasiades also referred to the Cyprus problem, dismissing fears over the cost of a settlement.

“What others call the cost of a settlement, for us is nothing more than the investments necessary to develop our country`s capabilities in all its territory,” he said.

Reiterating that a Cyprus settlement would be the most important reform and the biggest growth prospect in the decades to come, Anastasiades noted that “the prospects are unlimited and all estimations show that through a settlement economic prospects would reach another dimension for an EU member state that safeguards a model of peaceful existence.”

He made it clear that he attributes huge importance to the economic dimension of a settlement and explained that this is the reason he has called for a serious study on the matter with the assistance of the World Bank, the European Commission and the IMF.

President Anatasiades and the Turkish Cypriot leader Mustafa Akinci will embark on a new phase of UN-sponsored talks on January 9-11 in Geneva followed by a conference for Cyprus on January 12 in the presence of the guarantor powers, Greece, Turkey and the UK and all other relevant parties.

Cyprus has been divided since 1974 when Turkey invaded and occupied 37 per cent of its territory.