Cyprus could be a core member of eurozone

CYPRUS HAS what it takes to become a core member of the eurozone if government partners and opposition just show a little understanding, President Demetris Christofias said yesterday.

Speaking at an event to mark the European Year for Combating Poverty and Social Exclusion, he said the government had done a lot to tackle the economic crisis without putting a massive burden on the most needy, adding that the public was being bombarded with misinformation.

“We have achieved so much within a short time and under very difficult economic conditions. At the same time, while elsewhere the welfare state is unravelling to address the crisis, we are strengthening the welfare state. We seek a socially just way to deal with the crisis and to a significant extent, we are succeeding,” he said.

Christofias said at a recent meeting with a representative of the International Monetary Fund, “he told me that with moderate measures Cyprus could become one of the core eurozone nations and very soon indeed”.

The president hoped that this understanding would be shown both by the partners in government, but also from other parties “so we can have the opportunity and ability to feel proud because our small country overcomes relatively easily the economic crisis without placing the burden on the average person and without unduly burdening businesses, which we tried to help with half a billion euros when the crisis started.”

He added: “I say this because I honestly believe you are bombarded with information that’s the complete opposite of reality.”

Meanwhile, government partner DIKO submitted its proposals for the economy yesterday to ruling AKEL and the Finance Ministry.

According to DIKO spokesman Fotis Fotiou, the package of proposals was balanced, aiming to solve structural problems like pensions, state payroll, social insurance contributions and operational costs.

So far, DIKO has said it was not prepared to vote in favour of the 2011 budget as it currently stands.