OPPOSITION party DISY yesterday said the government’s austerity measures proposed on Friday by Finance Minister Kikis Kazamias were too little, too late to salvage the economic situation.
DISY deputy chairman Averof Neophytou likened the economy to the flu saying that preventative measures and treatment must be taken otherwise it will turn into pneumonia.
He also accused the government of not following through on their policies, and wondered if the government this time was actually proposing measures as opposed to intentions.
“For three years now we’ve been asking them to take preventative measures to safeguard the economy, for three years. And instead of cutting back they spent more, and then they come with the first package on August 26, then they suspend the Cost of Living Allowance for six months, they targeted social benefits and then fourthly freezing of wages for two years,” said Neophytou.
Kazamias had announced the freezing of the state payroll, which would save the state around €355 million in 2012 and 2013. The measures would also include taxing high incomes in the private sector and a small levy on companies with domestic activities.
The measures aim at restoring Cyprus’ access to international markets for its financing needs, which it lost after successive downgrades by all ratings agencies.
Kazamias stated it as a given that Cyprus would have to join the EU support mechanism if the measures were not taken.
The Greens called the measures “insufficient, unfair and heading in the wrong direction,” with MP Giorgos Perdikis saying that Kazamias had announced the measures without study and consultation.
EVROKO vice president Stelios Amerikanos blamed the banks saying that they are part of the problem and that EU requirements for capital adequacy had to be met. He said he hoped the proposals were part of the government’s position and not a “personal wish list of Kikis Kazamias”.
AKEL spokesman Giorgos Loukaides asserted that their aim was for the various social classes to contribute based on their capabilities and financial standing.
“Under this political framework we will submit additional measures concerning the contribution of accumulated wealth and large profits while supporting any other initiatives that fall within this philosophy,” said Loukaides.
Loukaides asserted that they were also ready to discuss further contributions by workers under the framework of a balanced package of measures if necessary, saying that his party had on other occasions submitted proposals aimed at tackling the island’s economic problems.
