Cyprus to deliver EU convergence report in November

CYPRUS will report in early November to the EU on the level and the course of the implementation of its convergence programme and other measures aimed at reducing public deficit, government spokesman Kypros Chrysostomides said yesterday.

Commenting on yesterday’s ECOFIN meeting which discussed Cyprus’ convergence programme for 2003-2007, Chrysostomides said that the Council noted that the government’s programme was ”convincing and applicable.”

”It is noted that the application of the measures relating to public finances on the basis of the convergence programme will allow the reduction of the public deficit from 6.3 per cent of GDP in 2003 to 5.2 per cent in 2004, to 2.9 per cent in 2005, to 2.2 per cent in 2006 and to 1.6 per cent in 2007,” the spokesman said.

”The Council also determined November 5, 2004 as the date Cyprus will be invited to inform the EU on the level and the course of the implementation of the convergence programme and other relevant measures included in it.”

Last month the government unveiled its convergence budget to the House Finance Committee, which is designed to reduce the fiscal deficit to levels that would qualify the island to join the euro in 2007.

Measures include a public service recruitment and wage freeze, limited increases on semi-government budgets, tax amnesties, real estate, ports airports and mobile phone levies, and cuts in defence spending.

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