DISY blames downgrades on government inaction

OPPOSITION DISY yesterday blamed government inaction and lack of credibility regarding the economy for the string of downgrades by international ratings agencies, suggesting the administration was being deceitful over a cost-cutting dialogue with civil servants that was supposedly ongoing.

“In politics, especially on matters of the economy, what is most important for the markets and ratings agencies is credibility, seriousness, adherence to commitments and decisiveness,” DISY spokesman Haris Georgiades said.

The DISY spokesman said one of the most important issues announced last year was the dialogue between the government and the civil service umbrella union PASYDY.

But what happened to that dialogue? Georgiades asked.

He then played back an April 1 response by ruling AKEL chief Andros Kyprianou in which he is heard saying that the dialogue had started a long time ago and that there had been a new meeting between President Demetris Christofias and PASYDY around two weeks ago and another one was on the cards.

On the same day, Christofias himself said talks had started with PASYDY, without however specifying the time and place.

Georgiades then played a recording of PASYDY chief Glafkos Hadjipetrou who said no meetings have taken place recently.

The last meetings with the government were at the finance ministry, with the rest of the unions, when it was announced they were hiring an actuarial firm to look into the pensions system and come up with recommendations, Hadjipetrou said.

The DISY spokesman said the meeting Hadjipetrou referred to had taken place on December 29, 2010.

“The conclusions are clear,” Georgiades said. “The most important precondition of an effective policy is credibility. The administration confirms its absence in a graphic way.”

He said the dialogue should have started a year ago, as the president had announced “and it is the results of this dialogue that the ratings agencies expected.”

The government’s inaction is paid dearly by Cypriot citizens and the country’s economy, the DISY official said.

Christofias sought to clarify the situation during his news conference last night, saying Kyprianou was under the impression he had met PASYDY because he had told him he was planning to do so.

“Because of a problem I had, the meeting did not take place. Andros was overseas… when asked he said the president met PASYDY,” the president said.

Christofias added that he met with PASYDY three times last year –twice alone and once together with other unions.