€750m boost for economy followed by new downgrade

2011-08-11

THE government yesterday officially unveiled a €750 million austerity package aimed at shoring up the economy, but it was not enough to avert a downgrade by ratings agency Fitch, which warned the island would need an EU bailout.

Opposition parties who also found the package inadequate said they would amend it or “bin it”, which   prompted a reaction from unions who said they would take industrial action “the likes of which have never been seen before”..

The austerity measures include a 2.0 per cent VAT hike from 15 to 17 per cent, an increase in income tax to 35 from 30 per cent for those earning €60,000 a year or more, and higher tax on interest on bank deposits, Kazamias told lawmakers yesterday morning.

Our View: New Finance Minister’s first job should be soothing the markets

2011-08-11

CYPRUS received yet another sovereign ratings cut yesterday and thanks to the fiscal policy of the Christofias government, more downgrades are not out of the question any time soon.

For some reason, whatever the government plans, announces, or even negotiates, it does not seem to convince rating agencies, investors and our creditors that Cyprus really means business when it comes to fiscal policy, to responsibly manage the taxpayer’s money.

Finance Minister Kikis Kazamias said yesterday that Cyprus’s fiscal deficit for 2011 will be around 6.5 per cent of gross domestic product compared to an initial target of below 4 per cent. The widening of the deficit, he said, was caused by the situation created by the July 11 explosion at Mari.

CTO: shop around to avoid being ripped off

2011-08-11

IF YOU are planning a getaway to one of the island’s tourist centres this summer, it pays to shop around for the best deal, according to the latest Cyprus Tourism Organisation (CTO) survey.

The CTO survey, which compared and contrasted the price of seven typical items in tourist establishments, such as restaurants, cafes and bars, has highlighted a surprisingly wide range of prices for the same products in the same types of venue.

The survey covered water, juice, frappe, Cyprus coffee, soft drink, beer, and a burger and chips.

In some cases, customers are forking out more than four times more than in nearby establishments, although in most cases the higher prices were in hotels.

Power cuts to end next month but Vassilikos restoration a long way off

2011-08-11

IT WILL take two-and-a-half years to fully restore the Vassilikos Power Plant but there should be no more power cuts as of September, the Director of the Cyprus Energy Regulatory Authority (CERA) told journalists yesterday.

CERA’s head, Giorgos Shammas, was speaking at a news conference held at the wrecked Vassilikos Power Station to provide information on the current state of affairs following the July 11 naval base blast.

The explosion knocked out the station and along with it, over half of the island’s electricity production.  “Four weeks after the devastating blast, the EAC has managed to restore some functionality,” Shammas said.

He was referring to the generators from Greece currently producing 28 Megawatts.

NG Deputy Commander Savvas Argyrou removed from post

2011-08-11

 

THE CABINET has sacked the National Guard’s (NG) deputy commander, Savvas Argyrou, for reasons of ‘national interest,’ government spokesman Stefanos Stefanou announced yesterday.

Stefanou said Argyrou’s was removed in line with the “police’s undergoing criminal investigation regarding the containers’ explosion at Evangelos Florakis naval base in Mari.”

Munitions held in 98 containers had been stacked together for over two years prior to the blast which killed 13 and knocked out the island’s main power station at Vassilikos.

Three NG officers have already been suspended with a fourth transferred to a different unit.

Argyrou could not be suspended along with the other three officers because he had been appointed by the cabinet.

Cooler temperatures on the way

2011-08-11

TEMPERATURES soared to 41 degrees inland yesterday with humidity levels exceeding the norm, the Meteorology Department said.

Thankfully by Friday temperatures are set to drop down as much as six degrees to between 35 and 36 degrees.

According to weathermen today’s temperatures should remain high at 38 to 39 degrees, with significant humidity on the coast.

However both humidity and the scorching heat are predicted to subside in time for the upcoming three-day weekend although the Meteorology Department has warned there will be strong winds and rough seas.

‘The Indignant’ call for Christofias’ resignation

2011-08-11

DISY leader Nicos Anastassiades yesterday reiterated calls for President Demetris Christofias’ resignation as he received over 10,000 signatures demanding the same thing.

Anastassiades was speaking to a group of people from the citizens’ movement ‘The Indignant’, or ‘I Aganaktismeni’, in its Greek name.

The group met with Anastassiades to hand over a petition with 10,800 signatures collected across all five districts but mainly from outside the presidential palace during nightly demonstrations, calling for Christofias to accept political responsibility for the July 11 blast and to step down.

Anastassiades said he understood the movement’s plight and that they were “justified” in asking for the president’s resignation.

Police gear up for long weekend

2011-08-11

TRAFFIC police will be out in full force over the August 15 weekend, police said yesterday.

Traffic police chief Demetris Demetriou said authorities had drawn up an action plan to tackle the “four asphalt killers”. These were drink driving, speeding, not wearing a seatbelt and not wearing a crash helmet, he said.

Demetriou urged motorists to adhere to the Highway Code and said under no circumstances should drivers get behind the wheel if they had been drinking alcohol.

“Alcohol and driving is flirting with death,” he said, pointing out that drink driving was still the number one cause of fatal road accidents.

Appeal to boost blood stocks

2011-08-11

THE ISLAND’S blood banks yesterday appealed to donors to make blood donations ahead of the coming long weekend,

Blood Bank head Socrates Menelaou said the reminder was necessary at a time when a lot of the public was on holiday and blood donations were low.

Although there were currently no blood shortages, Menelaou urged donors to make a quick stop at their nearest blood bank to ensure there were no problems.

Menelaou said blood donations could be made at all district hospitals, except Nicosia, including Famagusta, Larnaca, Limassol and Paphos from 7.30am to 2.30pm Monday to Friday. In Nicosia blood donations could be made at the Engomi Health Centre from 7.30am to 8pm and on Saturday mornings until 2pm.

Massive cash boost for Paphos hospice

2011-08-11

A SURPRISE donation of €100,000 made to the St. Michael’s hospice ‘400 Countdown’ appeal’ has left supporters in Paphos reeling in delight.

The cheque was presented to the St. Paul’s Catholic Parish presbytery on Monday and has meant a huge boost to the appeal, which is underway to ensure the completion of the Saint Michaels hospice in Mesa Chorio in Paphos.

The 400 Countdown campaign fund aims to raise the remaining €400,000 required to open the doors of the Hospice in 2012. So far, over €1.46 million has been raised.

Father Carlos Ferrero, the Parish priest told the Cyprus Mail: “We have been asked by the donors to keep their identity anonymous. The donation was a big surprise and the largest single donation we have ever had.”

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.