Economy on post-election agenda

THE government will next week embark on a series of meetings with parties and unions with the aim of discussing and tackling the problems plaguing the economy, Finance Minister Charilaos Stavrakis announced yesterday.

The announcement came as main opposition DISY said it had sent the minister a letter asking him to hold a national conference on the economy.

The minister confirmed DISY’s request, adding that he had also received letters from other social partners highlighting the need for a dialogue to deal with the problems of the economy.

“Of course, the letters were not necessary because I was planning next week to start contacts with parties and social partners,” the minister told reporters.

He said he was going to brief them on the current condition of the economy, the challenges and difficulties “before us and how we plan to resolve the structural problems.”

“I am optimistic that together we can help the economy do better,” Stavrakis said.

The main problems of the island’s economy are a ballooning state payroll and the unsustainable state pensions system.

So far the government has sought to tackle the problem by cutting some 1,000 positions but experts and international organisations have pointed out that this was not enough.

Dialogue between the government and unions was meant to start in April but it was postponed because of the tense climate ahead of the May 22 elections, it was announced at the time.

“With the elections in the past, and without the fear of political cost, we should all, together, find solutions immediately and resolve our economy’s structural problems,” DISY said in the letter to Stavrakis. “The sooner we take the decisions the less painful the measures will be.”