FINANCE Minister Kikis Kazamias yesterday said over 7,000 public workers would have to be laid off, VAT would increase to 20 per cent and corporate tax would hit the roof if measures for economic recovery were imposed by the EU.
So, he added, Cyprus’ public servants should be happy with the measures decided between government and the parties on Friday – instead of complaining they were “one-sided” and unbalanced.
Kazamias called on government workers to “not underestimate the ability of going to bed and knowing that they will still have a job in the morning”, which he said was more than what most workers in the private sector could say.
Kazamias promised that no other concessions would have to be made by workers while he is minister, and assured that the measures agreed with the parties on Friday aimed at taking Cyprus out of a dead end and avoiding the possibility of entering the EU support mechanism.
He said that in such a case, the decisions on what would happen to Cyprus would be made by others. “If this was the case, over 7,000 people would have to be laid off from the public sector, VAT would have to go up from 15 to 20 per cent, while corporate tax would have to increase, which today is lowest in EU, with all the consequences this would have on attracting business from abroad,” said Kazamias. The minister said the austerity package – which among others provides a two-year wage freeze in the broader state sector, but also a staggering contribution by private-sector workers, including the self-employed who earn over €2,500 a month – was to send a positive message abroad, as well as international markets.
Regarding tax evasion, Kazamias said he was determined to move ahead with the “name-and-shame” method for those who are evading their duties, and called on people who have lists of names, to make them public. “I personally have no such list,” he said.
DISY chairman Nicos Anastassiades yesterday said that what prevailed in Friday’s meeting, apart from some minor political gripes between the parties, was the general feeling of responsibility towards the country.
He called on the unions to understand that any measures taken today are “merely unpleasant”, as opposed to the “excruciating” measures that would have to be taken if Cyprus entered a support mechanism.
AKEL general secretary Andros Kyprianou sent a plea to the unions to show responsible behaviour, adding that his party had to compromise and agree to measures that “may not necessarily comply with our political ideals”.
PEO general secretary Pambis Kyritsis said it was worrying that government and parties reached a conclusion on the austerity package, without first consulting the unions.
He blamed “certain political powers, which completely identify with neoliberal policies” for exercising pressure to have the unions excluded from a social dialogue.
