Something is very wrong.

Europe is calling for digital transformation, investing billions in technology projects, but operating with rules that destroy those who are called upon to implement them.

Today, a company participates in a competition and commits to fixed prices. A few months later, equipment prices have skyrocketed. We are not talking about small increases. We are talking about price explosions that change everything.

And then the real problem begins.

The company either continues to write losses, or leaves.

If he leaves, he pays clauses.

And then comes the worst: he is excluded from future competitions.

Technical detail? No, we are talking about a reality where companies withdraw from contracts, pay heavy penalties and end up excluded from future tenders (and in Cyprus this is happening).

This is not a market. It’s a trap.

And as long as it continues, serious companies will move away from public works, leaving behind a system that is weaker, more expensive and less reliable.

For this reason, as President of CITEA, I made an open letter to DigitalEurope. Not to describe the problem – this is already known in the market – but to call for action.

Europe needs a mechanism that reflects reality.

A European IT Hardware Price Index.

A formal benchmark that allows for price adjustments, distributes risk fairly and stops penalizing those who keep projects alive.

As CITEA, we have already taken a step forward by creating a pilot platform (ask for the pilot link if you want) that captures market volatility in real time.

The solution exists. What is missing is the decision.

My opinion is clear: if the rules are not changed, there will be no companies left to implement the projects.

And then the problem will not be prices.

It will be that there will be no projects.

*President of CITEA.

Sources: https://inbusinessnews.reporter.com.cy/authors/giorgos-malekkos

https://www.philenews.com/oikonomia/apopsis-ikonomia/article/1714008/evropi-ke-kipros-stamatiste-na-timorite-tis-eteries-pou-ilopioun-ta-erga/

https://www.stockwatch.com.cy/el/blog/efrwpi-kai-kypros-stamatiste-na-timorite-tis-etairies-poy-ilopoioun-ta-ergha

https://www.brief.com.cy/oikonomia/kypros-oikonomia/eyropi-kai-kypros-stamatiste-na-timoreite-tis-etaireies-poy-ylopoioyn-ta