PARTIES yesterday said the measures proposed by the government to shore up the economy were in the right direction but they warned they might be too little too late to convince international markets and ratings agencies.
Speaking after a closed doors session of the House Finance Committee during which MPs were briefed on developments in the economy and the proposed measures, Government coalition DIKO vice chairman Nicolas Papadopoulos appeared satisfied and “relieved”.
Papadopoulos struck a note of caution, saying it was not enough to announce such measures “but to also implement them”.
“We expect to see in the next few days how the executive is planning to proceed so that these measures do not remain on paper as many had done in the past,” Papadopoulos said.
The DIKO MP, who has been critical of the government’s economic policy, warned however that no one could guarantee that implementing the measures could fend off undesirable developments for the economy.
The island has already been downgraded by all three credit rating agencies on its banking sector’s exposure to Greece, and delays in tackling structural reforms, and could see further cuts later this month.
Papadopoulos said the government should aim for a zero deficit after the next two years, adding that his party is at the government’s disposal to discuss new measures if necessary.
Main opposition DISY suggested the measures had come late but appeared prepared to work towards their implementation.
“We would not be forgiven by our children and the next generations if, and in light of the huge dangers, even at this point, we avoid taking the right measures,” DISY deputy chairman Averof Neophytou said.
Neophytou said the measures will probably be considered as “painful” by unions, and “could be considered inadequate by the ratings agencies and the markets even if they are adopted before the parliament closes” for the summer holidays.
Ruling AKEL spokesman Stavros Evagorou welcomed the measures, which he described as being balanced.
Evagorou said the structural problems of the economy were not a recent creation but this government was the first to dare deal with them.
He said time was of the essence and “dialogue with the unions should conclude soon so that Cypriot economy to avoids any adventures.”
Socialists EDEK censured the “inexcusable delay” in drafting the proposals and suggested they could be much more effective and potentially less painful if they had been implemented a few months ago.
