Central banks are also required to nurture the various characteristics that underpin the design and development of the payment system. Specifically, a central bank has to put forward the legal framework through the establishment of rules and regulations, standards, and policies that will govern the nation’s payment and settlement services; while facilitating payment finality.
In Cyprus, as in many other euro area countries, public expenditure is still high by international standards. A leaner public sector could be more efficient and, at the same time, more effective. In this context, moderate wage developments that take into account labour productivity growth, labour market conditions and developments in competitor countries can make an important contribution to fiscal consolidation and employment growth.