AKEL has voted against the State Budget because it does not correspond to its developmental and social role
Statement by Stavros Evagorou, Deputy Parliamentary Spokesman of AKEL- Left-New Forces
AKEL C.C. Press Office, 17th December 2014, Nicosia
Yesterday the discussion and vote on the State Budget for 2015 in the House of Representatives was concluded. which the given Budget should play, especially when recession and high unemployment are prevailing in the economy.
In evaluating the various aspects of the Budget we assess the following:
- The State Budget does not address the recession and does not offer any prospects for growth to the Cyprus economy. Due to the policy of cuts and austerity recession in 2013 reached 5.4%, while in 2014 the growth rate will continue to be negative. Developments in Russia and their impact on tourism and services, as well as the stagnation in expenditure for developmental projects restrict the prospects for a recovery in 2015.
- In conjunction with the intensification of the austerity measures being imposed, the Budget does not create prospects for improving employment conditions. Unemployment remains at historically high levels and is still rising. The first half of 2014, unemployment increased compared to the corresponding period in 2013 (from 15.8% in 2013 to 16.2% in 2014).
The meagre and transitory decrease in unemployment rates is not the result of an improvement in employment, but rather a reaction to the non-existence of job prospects in the future (not-registered unemployed, migration, Community workers leaving Cyprus).
- Public finances although registering an improvement, have seriously damaged growth and social cohesion. When the Minister of Finance states that no additional taxes will be imposed in 2015 he is deliberately ignoring the following important fact. Namely that during the Anastasiades government VAT and all consumer taxes have increased, as has corporation tax and tax on interest. In addition, a tax on immovable property has been imposed, whilst car licenses have increased, as have fees and charges in hospitals.
- The banks, despite the sacrifices made by society and despite their recapitalization, maintain the highest mortgage and business rates in the Eurozone. Significant restructuring of loans has not proceeded, nor have they managed to channel lending again to the real economy.
- As AKEL, we point out the Government’s mercilessness in relation to the structural changes being promoted. Not only has the Government not proceeded to the implementation of the National Health Scheme as this had been agreed, but it is moving ahead to change it, aiming to hand it over to private interests.
We therefore have a Budget characterised by brutal austerity and cuts; a Budget that enslaves the country in a vicious cycle of austerity – recession; a Budget which weakens development and growth, destroys social cohesion and undermines the social sectors of Health, Welfare and Education.
This is a Budget trapped in the philosophy of the Memorandum which is the political/ideological manifesto of the Anastasiades Government. The 2015 Budget reproduces the stagnation and prevents Cyprus’ exit from the recession.
