PASYDY: decisions should be made by an equal sharing of responsibilities
FINANCE Minister Charilaos Stavrakis has presented the coalition parties with a new package of measures for economic recovery, expected to reinforce the state with €120 million.
The new package provides a 2.0 per cent wage cut for all public servants – as opposed to the ministry’s previous proposal two weeks ago for a 1.0 to 2.0 per cent wage cut, depending on their salaries – and is expected to save the state €35 million instead of €20 million, which would have been the case with the previous proposal.
Government Spokesman Stefanos Stefanou yesterday said the measures, which were leaked to the media late on Friday night, were suggestions and proposals that will be discussed between the government and coalition parties, DIKO and AKEL, during the week.
“I want to clarify that there are no decisions yet,” said Stefanou. “What is in the media today are added thoughts that were sent by the finance minister to the two parties in view of the continuation of discussions between them and the government, to formulate final decisions on how to bring about economic recovery and improve public finances.”
The proposals were far from welcomed by the head of umbrella public servants’ union PASYDY, Glafcos Hadjipetrou, who yesterday said the unions would meet tomorrow to discuss the new developments.
He went on to accuse opposition DISY’s deputy president Averof Neophytou and DIKO vice president Nicolas Papadopoulos – who have openly slammed the perks and benefits enjoyed by public servants – of urging the President of the Republic to attack the public servants’ salaries.
Hadjipetrou conceded that if everyone took on their share of responsibility to deal with the economic crisis, the unions would respond positively.
“I am saddened to say that certain people are not giving the President any choice but to attack the salaries and incomes of the workers and this is unfair,” said Hadjipetrou. “Our plea is for decisions to be made based on the equal share of responsibility and everyone to contribute based on their abilities.”
He added, “There is a duo that is systematically attacking the public servants and they are Messrs Averof Neophytou and Nicolas Papadopoulos.”
Apart from the public sector’s pay cuts, Stavrakis is proposing a 30 per cent tax increase on cigars and 20 per cent increase on tobacco products – a move that aims to earn the state €31 million. The previous package provided a €14 million income.
Taxes on bank profits are expected to bring in €55 million – €15 million more than the previous suggestion.
The ministry’s new proposals will be examined by DIKO and AKEL in the week, and will be followed by a meeting the minister to discuss their views.
The measures are aimed at shoring up the economy and cutting the deficit to achieve the EU goal of 4.5 per cent by the end of 2011.
The local economy received a further blow last week, when international ratings agency Standard and Poor’s cut Cyprus’ A+ rating to “A with a negative outlook”, citing the banking sector’s high exposure to debt-ridden Greece.
Meanwhile, the general secretary of the Cyprus Workers Confederation (SEK), Nicos Moiseos, launched a scathing attack of the government’s handlings in the economy, accusing them of making “wrong evaluations, which led to complacency and procrastination”.
“As a result of the mistakes and omissions, the economy is under supervision by the EU and is also being called on to deal with the consequences of the downgrade that was imposed by Standard and Poor’s”, said Moiseos. “If measures aren’t taken soon, the economy is in danger of being further downgraded.”
