Reduction in working people’s salaries and benefits recorded for three consecutive years
Statement by Stavros Evagorou, member of the Political Bureau and Head of the Economic Research Bureau of the C.C. of AKEL
AKEL C.C. Press Office, 7th June 2016, Nicosia
According to figures released the day before yesterday by the European Statistical Service “Eurostat”, Cyprus is the only country in Europe where a reduction in working people’s salaries and benefits for three consecutive years has been recorded. Indeed, this reduction (approximately -7.1%) is the biggest than any other EU and Eurozone country.
More specifically, while in 2012 the hourly labour costs in Cyprus had risen to 16.8 Euros, in 2015 – due to the austerity measures and cuts imposed – it fell to 15.6 Euros compared with 25 Euros in EU states and 29.5 Euros in the Euro zone.
As a result of these austerity measures and cuts, the percentage of working people being classified in the low income category has risen sharply.
Besides, it is no coincidence that our country also records the biggest income inequalities throughout Europe.
Tragic for our working people and country is the fact that the Government of DISY was claiming – at least until recently – that the reduction in labour costs would improve the competitiveness of the Cyprus economy. Unfortunately for the government, statistics refute this myth as well. According to the competitiveness index published by the World Economic Forum, Cyprus fell to the 65th position in 2015 from the 58th it occupied last year.
That is to say, in reality the neoliberal policy of austerity and cuts in working people’s salaries and benefits have not led to an increase in the economy’s competitiveness. However, these policies have led on the one hand to increased profits and growing numbers of poor on the other. The rich have become richer and the poor poorer.
Other than that, the government is still promoting the myth about the economy’s supposed “success story”.
