THE POLITICAL parties and government see eye-to-eye on the package of measures being drawn up to prop the ailing economy which will be ready on Friday, said government spokesman Stefanos Stefanou yesterday.
President Demetris Christofias chaired a second meeting with party leaders yesterday to discuss immediate measures for the economy following on from the first meeting on July 8.
The second meeting had originally been scheduled for last Monday, the day of the Mari naval base blast which killed 13 people, injured many and all but destroyed the country’s largest power plant, responsible for 52 per cent of electricity production.
Stefanou said the debate continued yesterday on the rational structuring of the economy, adding that it was impossible not to talk about the tragic incident at Mari, “which apart from everything else adds to the difficult situation the economy is in”.
During yesterday’s meeting, also attended by Finance Minister Charilaos Stavrakis, the views and proposals of all parliamentary parties were heard regarding the formation of a single package of measures to be rushed through parliament as soon as possible. Only opposition DISY did not give a presentation as its leader Nicos Anastassiades already did so on July 8.
“After reaching a broad convergence on views and proposals regarding measures that have to be taken for the economy” the decision was taken to establish a subcommittee chaired by the finance minister that will meet to discuss the finer technical details of proposed measures, said Stefanou, adding that by Friday, the parties will meet for a third time with the government to take the final decision on the package.
Stefanou dodged questions on how the reconstruction of the Vassiliko power plant will be financed, saying it was premature to be discussing that issue, which was the concern of the Electricity Authority.
Asked if the aim of the measures was to avoid entering the EU’s financial support mechanism, Stefanou replied: “Is there anyone who aims to enter the support mechanism?”
He added that the government’s package of measures will also include proposals submitted by the parties.
House President and EDEK leader Yiannakis Omirou told reporters outside the presidential palace that the measures will not only include tax measures, but also measures of a structural nature. He noted that the package will include privatisation measures and the abolition of certain councils.
DIKO leader Marios Garoyian said the measures need to be implemented immediately.
“The common aim and desire is to achieve the necessary convergences to tackle the economic crisis, but also the consequences of the tragic incident,” said Garoyian.
Ruling AKEL leader Andros Kyprianou confirmed that there was a convergence of views among the party leaders.
“I believe there can be understanding and consensus. In our view, there needs to be,” he said.
According to state broadcaster, CyBC, the package of measures will include privatisations, the dissolution of certain semi-government organisations, a €70m contribution from the wider public sector, taxation of large immoveable properties, sliding scale levies on companies, the reduction of entry level wages in the public sector, plus changes to hiring figures and the calculation of leaving handouts for retirees.
A second package of measures with more medium- and long-term goals is also due to be passed before the end of the year.
