2016 State Budget

 

Statement of Stavros Evagorou, Deputy Parliamentary Spokesperson of AKEL-Left-New Forces

AKEL C.C. Press Office, 17th September 2015, Nicosia

 

On the occasion of the approval of the 2016 State Budget by the Ministerial Council, the government has come out celebrating that we will have growth. The government’s attempt to portray a situation in a positive light that cannot be camouflaged with anything is most unfortunate.

For us, real growth must be accompanied with the improvement in the lives of the common people.

It is to say the least provocative for the government to be celebrating about growth at the same time as:

– 70,000 or more than 16% of our compatriots are unemployed,

– 250,000 or one-third of our compatriots have been impoverished,

– 50,000 of our fellow citizens are fed by social food banks,

– The health system has collapsed,

– Children go to school without having breakfast,

– The foreclosures of primary family homes and the eviction of people has begun,

– Social benefits, which according to statistics are the lowest in Europe, have been cut to dangerous levels.

Assessing the above-mentioned figures alone, it can easily be concluded that neither the numbers, nor the people are prospering.

For AKEL, growth should generate wealth that must be distributed in society, create jobs, reduce poverty and upgrade the welfare state.

At the same time as the people are suffering, the government is incapable of realizing that there can be no real growth as long as austerity policies are being implemented.

This policy was tested and has failed. Unfortunately, not only does the government not intend to abandon austerity policies, but it is committed to ensuring that the Memorandum policy of savage cuts, reduction of wages and the dismantling of the welfare state will continue even after the official termination of the Memorandum.

The 2016 state budget has been elaborated within this framework and according to this philosophy. It is a Memorandum budget in line with the Troika’s policies. The welfare state is still constricted, whilst development expenditures are increased by 5% after two years of having been reduced by 30%.

We therefore wonder – what will bring growth? Will it be the Banks with the highest interest rates in Europe who refuse to lend to the economy? Will it be the non-existent foreign investment and the limited development funds of the state? Or will growth be generated by privatizations? How can the government celebrate about growth and at the same time start the selling off of state land?

Unfortunately for the country, this government is stating unequivocally that it will persist on the path of Memoranda policies even after the exit from the Memorandum. This government has chosen to serve the Troika, rather be useful to society.