FINANCE Minister Charilaos Stavrakis yesterday pledged to resolve the state pensions matter, as dialogue with the unions is expected to start after Sunday’s parliamentary elections.
Speaking at the annual economic congress of the Institute of Certified Public Accountants of Cyprus (ICPAC), Stavrakis pledged to resolve the issue and come to an agreement with government workers union PASYDY.
“We will resolve the state pensions consensually and through dialogue,” Stavrakis said.
He later told reporters that intensive talks with the unions and political parties would start after the elections in a bid to achieve the greatest consensus possible over the challenges of the economy.
Dialogue between the unions and the government was scheduled to start in April but was postponed because of the tensions linked to the elections.
The minister welcomed the opposition’s readiness to start a dialogue aimed in “finding the best possible solutions for the economy.”
Cyprus has been warned repeatedly of the need to cut the state payroll and resolve the unsustainable state pensions system but so far no substantial actions have been taken apart from eliminating some 1,000 positions in the state sector.
Yesterday, Stavrakis struck a note of optimism over the economy’s prospects for this year.
“As regards the growth rate, it seems things are moving satisfactorily,” he said.
Preliminary figures for May showed a seven per cent increase in revenues from indirect taxes.
“Our estimate that public finances will improve as the year progresses seem to be confirmed by May’s preliminary results,” Stavrakis said.
The minister highlighted tourism’s positive outlook, and a recent agreement to attract 200,000 tourists from new destinations.
“As I said at the beginning of the year, tourism will be the main sector providing a big boost to the Cypriot economy,“ the minister said.
Stavrakis told delegates at the congress that the government aimed for a public deficit of up to 4.5 per cent for 2011, as was the island’s commitment to the European Union.
Former finance minister Michalis Sarris, who chaired the congress, said Cyprus should not have even been talking about deficits but surpluses instead.
Sarris also censured parties who demand structural changes from the minister while at the same time asked for offsetting measures after the increase in VAT and concessions to refugees, knowing that state revenues were limited.
