Speech of the General Secretary of the Central Committee of AKEL Andros Kyprianou in the debate on the 2020 State Budget
9th December 2020, House of Representatives, Nicosia
The context in which the State Budget for 2020 this year is being discussed is particularly depressing.
The Anastasiades-DISY Government has chosen to exercise power with authoritarianism and arrogance.
It chooses to engage in confrontation and promotes division.
It is only interested in the privileged few, disregarding the many.
It promotes clientelism, favouritism and seeks to exercise governing DISY’s control over everything. It could not care less about interwoven interests and corruption that have become a daily practice, without showing any sensitivity and a devotion to a code of conduct
It indulges in sensationalist moves and ignores the substance of issues.
It aims to exercise control over public opinion on the domestic front.
It takes no notice of the harm being done to Cyprus’ image abroad.
As a result, the majority of society is tired of the arduous effort to make ends meet and stand on its own feet.
It is disgusted by the ongoing incidents of corruption and interwoven interests.
It is disappointed with the situation on the Cyprus problem and is pessimistic, not having a hope that something may change and that Cyprus can be saved from the dangers and threats it is facing.
Society is worried about the escalation of Turkey’s provocative actions and aggression. The international community’s response to this escalation, unfortunately, remains lukewarm and timid. Whatever measures are taken, cannot and will not have any significant effect as regards the solution of the Cyprus problem.
Instead of learning from his mistakes and elaborating a coherent strategy for achieving the goal of the solution, Mr. Anastasiades is unfortunately improvising. He is acting with regressions, contradictions and engages in tactical games. For that reason, the Cyprus problem has been led to a dangerous stalemate.
Despite all their pre-election promises, Mr. Anastasiades and the ruling DISY party did not bring the Cyprus problem closer to a solution.
Worst of all, they haven’t convinced the international community that we do not have any responsibility for the protracted deadlock.
They haven’t defended the interests and rights of the Republic of Cyprus effectively.
After the collapse of the Crans Montana conference, AKEL was warning that the protracted deadlock would pose dangers for new serious fait accompli to the detriment of Cyprus and our people. The report submitted by UN Secretary General Mr. Guterres to the UN Security Council in September 2017 relieving Turkey of responsibilities also contributed to this.
It is worth recalling that the Government did not reply to the UN Secretary General’s Report which refuted Mr. Anastasiades’ account and narrative of what actually happened at Crans Montana.
We insisted at that time that Mr. Guterres’ proposal for the resumption of the negotiations from the point where they had remained at Crans Montana, namely the convergences that had been recorded so far, the Framework tabled by Mr. Guterres of 30th June and the informal document on the mechanism for the implementation of the solution, should have been accepted unconditionally. Unfortunately, the Anastasiades—DISY government didn’t listen to AKEL’s views.
We warned that the absence and gap in negotiations would give room for Turkey to engage in aggressive actions.
AKEL has been vindicated in our assessments.
Two and a half precious years have been lost during which Turkey has stepped up its aggressive rhetoric. It has provoked and is provoking with its actions in our Exclusive Economic Zone (EEZ) and in Famagusta. Unfortunately, we haven’t convinced the international community either of the sincerity of our own intentions.
Mr. Anastasiades’ statements that were questioning the convergences achieved, the tabling of so-called “new ideas” and the unproductive confrontation over the existence of a supposed 4th July framework were deliberately wasting time.
Time is running out.
If we don’t act in a serious manner and aren’t consistent to the strategic goal, we will definitely lose the opportunity to resolve the Cyprus problem on the basis of the agreed framework. It is unfortunate, but the impression is widespread that this is the very goal of certain forces and circles within the Greek Cypriot community.
At the recent trilateral meeting held in Berlin, it was reaffirmed before the UN Secretary-General that the goal of the solution is bi-zonal, bi-communal federation.
It was reiterated that the terms of reference will consist of the Joint Declaration of 11th February 2014, the convergences that have been recorded so far and the UN Secretary-General’s Framework of 30th June.
This the best reply to all those who were flirting with other ideas – including Mr. Anastasiades himself.
The fact that an agreement on the terms of reference could not be agreed is worrying.
Also alarming is that the possible resumption of negotiations is put at after the “elections” in the Turkish Cypriot community.
The position of the UN Secretary General himself, which he reiterated once again, namely that the two leaders must prepare society for the need to solve the Cyprus problem, is particularly important. The two leader’s willingness to do so will also demonstrate their political will to work for a solution.
Many people are justifiably wondering how can there be a dialogue for a solution of the Cyprus problem “with this aggressive Turkey”? It is precisely this aggression that generates geopolitical uncertainty and directly threatens the prospect of the very survival – both physical and economic – of our homeland and people.
We have to ask ourselves: Do we give up and hand over our homeland to Turkey or do we struggle with all the diplomatic means at our disposal to save it?
The perpetuation of the current status quo will also mean the continuation of Turkey’s machinations against Cyprus.
If we are not engaged in a dialogue for a solution, the natural development will be partition.
We must not forget what History teaches us.
Whenever there has been an absence of negotiations, we have always witnessed the most serious fait accompli being imposed by Turkey. This must ring an alarm bell.
I will also dwell briefly on the issue of natural gas.
Turkey’s illegal actions prove that the solution of the Cyprus problem is the only effective way to address Turkey’s aggression.
Having this in mind, I would remind you that the convergences that have been recorded on maritime zones, natural resources and the allocation of federal revenues solve the problem between the two communities simultaneously with the solution of the Cyprus problem.
The only pending issue that remains in the event of a solution is the delimitation of the Exclusive Economic Zone with Turkey. This is a problem that many states face with each other and with which we can live up to its final resolution.
No one can deny that after the solution of the Cyprus problem that this is difficult, but better preconditions are created for its solution. With the Cyprus problem not solved, of course, it is an illusion to believe that the delimitation of the EEZ with Turkey is possible.
The obstacles to the resumption of meaningful negotiations with the goal of achieving a bi-communal, bi-zonal federal solution must be overcome.
Another demand put forth by certain forces and circles is the abandonment of the agreed framework of the solution (bi-zonal, bi-communal federation).
Today it has been proved in the worst possible way that the only real dilemma we face before us is federation or partition. Today, when options other than federation are being discussed, have you heard anyone talk about the solution of a unitary state, besides certain forces and circles within the Greek Cypriot community?
On the contrary, the discussions are about confederation and a two states solution. We all understand that, in real life, such ideas enable Turkey to promote plans for the full control of the occupied territories and indirect control over the free areas. This will lead to a “hard border” with Turkey, which will be disastrous for Cyprus.
Consequently, the only feasible solution is bi-communal, bi-zonal federation.
A solution that will guarantee and safeguard the human rights and fundamental freedoms of all Cypriot citizens.
A solution based on the Resolutions of the United Nations, the High-Level Agreements, International and European Law.
A solution that will demilitarize Cyprus and exclude any guarantees or intervention rights in our country’s internal affairs from foreign powers.
A solution that will reunite the territory, the people, the institutions and the economy within the framework of a bi-communal, bi-zonal federation with a single sovereignty, a single citizenship, a single international personality and political equality as outlined in the UN texts.
A solution that will lead to a united state, a continuation of the Republic of Cyprus.
It is our hope that from now on the two leaders will act with consistency and determination; that they will focus on taking initiatives and develop a rhetoric that will enhance the prospect of the reunification of our country.
The wider region of the Eastern Mediterranean and the Middle East has been completely destabilized.
Turkey, pursuing an aggressive strategy of imposing fait accompli, is trying to benefit from the geopolitical instability. That is precisely why we have been warning about and exercising pressure on Mr. Anastasiades for so long so that fait accompli won’t be created because of the absence of a negotiating procedure. AKEL’s warnings were disregarded.
In the end, Cyprus risks paying the heavy cost of the lost time.
The same time as all this was happening, the people were being fed stories and misled into thinking that the EEZ (of the Republic of Cyprus) had been shielded. Instead of acknowledging their mistakes and revising their tactics, instead of self-critically reflecting on developments, they chose the easy way out.
They tried – yet again – put the blame on AKEL.
AKEL was a convenient target in the run up to the European elections. The given situation back then put unbearable pressure on them. Their responsibilities for the selling-off of the Cyprus Cooperative Bank couldn’t be hidden and were evident.
Meanwhile, the social indignation over the serial killings of immigrant working women and children had reached a peak.
At the same time as Turkey’s drilling rigs were operating within the Cypriot EEZ, while the Turkish frigates were blocking drillings in licensed plots and the government ruling forces were unable to react because of their handlings what were the government ruling forces doing? They accused AKEL of playing Turkey’s game!
Any logical person could understand that this had all to do with petty-party tricks and considerations in order to maintain their electoral percentages.
Once again Mr. Anastasiades and DISY put electoral considerations and the presidential chair above everything else. They have lowered the level of public debate by talking about “borrowed votes” (of Turkish Cypriots) and accused AKEL of “undermining the homeland”. Revealing their true nature, they took a turn towards the extreme-right.
A campaign of fear was launched to portray AKEL as some disgraceful abomination, as a threat to the country and the economy.
Unfortunately for our country, the “green light” for this campaign was given by the Presidential Palace, with the President of the Republic himself calling AKEL and our popular movement “zeros” because we dared criticize him – with the Presidential palace and DISY asking us what interests does AKEL serve.
They ask us what interests we represent when they permit time to go by aimlessly without taking action.
They ask us what interests we represent when Ankara is preparing to colonize the enclosed city of Famagusta in flagrant violation of the UN Security Council resolutions.
They ask us what interests we represent when Turkey is dangerously threatening the Turkish Cypriot community’s identity through its colonization and the complete control over it.
I’ll say it again. AKEL was, is and will remain the patriotic voice that raises its voice and struggles for the whole of Cyprus; the voice that declares that we are one country and one people; that we will not surrender; that we will not yield. We will struggle to live in our country – united, free and in friendship.
The future, our homeland, society and the economy aren’t threatened by AKEL, but by clumsy handlings and dangerous policies – both on the Cyprus problem and internal governance.
The domestic front
On the domestic front, the government ruling forces must at long last show an interest in the majority of society who are suffering from their policies.
They must finally disengage themselves from the myth they have promoted about the Cyprus economy’s supposed “success story”. The stark reality is regrettably quite different.
What kind of growth have they generated? Why are they proud of this growth?
Whose pockets do the revenues from growth fill? Who will be the ones to benefit?
Is this a growth that guarantees sustainability and the protection of the environment?
AIs it a growth that supports the real economy?
Does this growth promote research and innovation?
Does it seek to tackle the manifold social problems? Who invests in human resources?
Of course not.
The entire productive model of Cyprus is distorted, its human resources are depreciated. The consciousness of the young generation are being corrupted in an anti-productive environment; an environment that is condemning the young generation to a worse and more expensive life than that of previous generations.
The economy is growing, but society continues to feel uncertainty and insecurity about the future.
The number of jobs are rising, but workers are trapped as their wages and incomes remain stagnant. They cannot plan their future with security and certainty.
Although international investment is rising, small and medium-sized businesses and the self-employed find it difficult to make ends meet. They continue to suffer from the burden of their loans and obligations.
The Government considers these contradictions normal. This is how they have always acted, because this suits them and because they serve the interests of their powerful friends and cronies.
Despite improved economic indicators, despite surpluses recorded in public funds and an increase in the number of jobs, the government ruling forces haven’t changed neither their political direction in the economy, nor have they improved the philosophy of the state budget for 2020. The government continues to believe that everything is progressing smoothly, while a very large section of society continue to face uncertainty and difficulties.
As to the surpluses registered, it is easy to achieve them if you cut spending on public health, programs for the 1974 refugees, social benefits, etc.
On the economy, despite the positive growth rates recorded, the government is pursuing a developmental model based on short-term planning. This is not sustainable. At the same time this policy has a very negative impact on a large section of society.
With the one-dimensional developmental model pursued, based on the Cypriot passports via the citizenship-by-investment scheme, the government has created an economy for the privileged few.
It is a fact that this ‘golden passports’ scheme has helped our economy in difficult times. However, its abuse, the absence of any effective control and the involvement of the President of the Republic’s family in the Program have damaged it enormously.
Worst of all, Cyprus has been defamed and vilified all over the world. This scheme, as the Minister of Finance himself also admitted, has made little contribution to the country’s GDP. Most of the revenue went into the pockets of a small group of property businessmen, lawyers and accountants. In contrast, the majority of society is suffering the burden of the crisis. The available income of households has fallen dramatically over the past 7 years. Today it is significantly less in relation to the period before 2013.
This situation has worsened the daily life of people.
Consider, for example, what is happening in the housing sector. Increased rents, rising property prices, working people’s low incomes, difficult lending terms of banks and the undermining of the State’s housing policy have made housing a privilege and not a right for all people.
Instead of all of this resulting in a reflection, the government ruling forces are trying to shift the blame elsewhere. Their argument is “blame the previous governments”. The Anastasiades-DISY has ruled for 7 whole years and seeks to apportion responsibilities on their predecessors – but not only that.
Who can forget former Finance Minister Haris Georgiades’ statement that young couples are responsible for high rents? Why? Because as the Minister had stated they supposedly choose to rent rather than buy or build a house!
Has it ever really crossed his mind that young couples don’t have the money to buy or to build a house? That they are suffering on low incomes and salaries and can’t afford a loan? What kind of world does he live in?
It’s not just rents and housing. Cyprus tops the table with regards the price of essential goods across the European Union. Prices have soared as wages have fallen sharply. Nor does this fact worry the Government.
The truth is that the Anastasiades-DISY government hasn’t achieve a “success story” on the Cyprus economy. On the contrary, it has endangered it, leading to a “get rich quick” philosophy in the economy. Rapid growth in the construction sector risks creating a “bubble’ phenomenon.
The current situation makes the country more vulnerable to international developments and risks.
The Anastasiades-DISY Government will go down in history as the government that dismantled the Cyprus Cooperative Bank. It undertook its management in 2013 given that it had nationalized it. For five years it was stating that everything was progressing well. It eventually led things to its sell off with a huge government subsidy to the Hellenic Bank. At the same time it has loaded billions of Euros on to the backs of the people.
The finding of the probe conducted on the collapse of the Cooperative Bank has eroded the government’s few remaining credentials.
The government ruling force’s refusal to take on their responsibilities and their rejection of the probe’s finding has confirmed that they continue not taking any responsibility for anything.
The finding in a very clear way substantiates the reasons for the collapse of the Cooperative Bank, pointing that:
“The final collapse of the Cyprus Cooperative Bank in 2018 cannot be traced back to what happened before 2013. It must found in the mistakes, omissions, inaction, inability, criminal negligence demonstrated and perhaps even illegal practices committed by those who handled the cases of the Cyprus Cooperative Bank from recapitalization and thereafter.”
Its collapse was the result of the policies of the Anastasiades-DISY Government, namely the targeted and deliberate policies promoting its selling off. This is the reality no matter what the government and DISY may say or do.
They did the same also with the handling of the problem of the Non-performing Loans (NPL’s) and foreclosures too. Private debt and NPL’s, one of the main problems of the Cyprus economy, continue to burden both households and small and medium-sized enterprises (SME’s).
The Government portrays their numerical reduction as a “success”. In reality, the most significant reduction stems from the removal of loans from the balance sheets of banks and their sale to third parties. This does not alleviate in any way the burden on households and SME’s.
Even the government’s ‘ESTIA’ debt relief scheme could not ultimately represent a viable alternative for borrowers – many of them are now facing the danger of having their primary family home and/or small business property the subject of foreclosure.
The scheme failed not because interest in it was limited, but because it itself had significant shortcomings. It is a scheme that does not cover the first people it must cover ∙ that is the vulnerable groups of citizens with incomes that do not enable them to pursue a process of sustainable restructuring.
These vulnerable groups all remain exposed. Unfortunately for them the government has done nothing, neither for those who have been consistent with fulfilling their obligations to date.
As society increasingly faces the risk of auctions, the DISY-Anastasiades government continues to act as a mere spectator.
First, it made sure to change the legislation on foreclosures, making the procedure easier and simpler for the banks. It subsequently sent to the Supreme Court all the draft bills AKEL, together with other opposition parties, had passed in the House of Representatives. These proposals aimed at improving the web of protection for borrowers. Banks demanded fewer barriers to foreclosures, faster procedures, fewer rights for borrowers and electronic auctions. The Anastasiades-DISY Government gave the banks everything they asked for.
Today thousands of auction letters are being sent in bulk, some of them targeting primary family homes. The number of people who are homeless is increasing. The government ruling forces are simply indifferent. The Anastasiades-DISY Government can also record this among its “successes”.
It boasts about unemployment rates having been reduced. At the same time their policy is downgrading the quality of labour.
In the seven years of the Anastasiades-DISY government labour relations have been deregulated. The quality of labour has dramatically deteriorated.
Low wages and part-time/precarious employment have risen sharply; workers are without any protection whatsoever.
It is clear that the Government does not aim to support society.
This is also evident from the budget it has tabled for 2020. It is yet another anti-growth, anti-social and anti-people’s budget with no vision – adhering to the same philosophy as previous years.
The budget is anti-growth since total public investments are at very low levels, much lower than those in 2012, in the midst of an economic crisis.
It is anti-social as social benefits remain consistently low, with the only exception this year’s inclusion of expenditure for the National Health Scheme (NHS).
Cyprus is the country with the lowest public spending as a percentage of GDP in the health sector across the EU. Expenditure on the NHS will improve the situation, but doesn’t negate the Government’s policy to date. As far as the NHS is concerned, it is one of the biggest popular gains. AKEL led the efforts and was at the forefront in the House of Representatives vote in favour of the relevant bills. Unfortunately, the Government did not implement its own share of responsibility to provide support for public hospitals. The result is that they are faltering, endangering the NHS itself.
Our country is also one of the countries with the lowest spending on social protection in the European Union.
It is anti-social, given that the policy of spending cuts, although creating primary surpluses, has failed to solve the economy’s major problems.
Lastly, this is a budget that continues the Government’s policy on promoting clientelism and cronyism.
The reckless spending on purchasing services and hiring “advisers”/”assistants” of the President and other officials has become a daily practice.
The open-ended agreement to subsidize the salaries of the Church’s priests has loaded another 80 million Euros on taxpayer’s backs for the next decade.
Judging from this alone, it is clear that for the Government, clientelism and cronyism takes precedence over the upgrading of public services.
It is no coincidence that the overall size of civil service workers has surpassed 2012 levels. Of the 61,837 back then, today their number stands at 61,924. We all remember the destructive criticism leveled by the governing Democratic Rally DISY party back then about “excessive numbers of employees” in the Civil Service.
The magnitude of social inequality that prevails in Cyprus today is also evident in the class policies that are being imposed. According to the latest survey by the European Statistical Service, young people in our country, although working, are threatened by poverty due to low incomes/salaries.
Those of us still in touch with reality see the phenomenon around us.
It is the phenomenon of graduates who are underemployed.
They are graduates who work daily for 700 and 800 euros a month.
It is the young people working in Cyprus, but are at risk of poverty that have increased, while across Europe their share is falling.
Thousands of young people cannot live on their own even though they work. They cannot provide the essential things they need for themselves.
As for social policy, it has become a social cleansing operation.
Instead of support being provided to the weak and vulnerable groups of the population, their situation is getting worse.
Overall social spending has decreased over the last six years. It was cut when the people needed it most because of the crisis.
Social welfare benefits were also reduced and suffered cuts. The average percentage on social spending in relation to Cyprus’ GDP is much lower than the EU average.
In Cyprus, the percentage of central government social spending in relation to the GDP in 2017 was 5.1%, while the EU average was 7.1%.
It wasn’t just spending cuts that were being imposed. There have been cuts in recruitment and state grants to voluntary organizations and Community Welfare Councils operating social programs. All this happened at a time when the Social Welfare Services were left to collapse. They primarily execute orders of the Minimum Guaranteed Income Service.
The results of these policies aren’t just disappointing.
They aren’t simply wretched. They have blood on them.
We all remember the tragic histories of cases that should supposedly been monitored by these Services. Instead they ended in death, shaming society and institutions. They shame us all.
At a time when pensions have fallen to between 500 and 400 Euros, with salaries reaching 1,000 Euros at best, the Anastasiades-DISY Government decided that state structures for the protection and support of children and the elderly had to be closed down or handed over to others…
On the eve of the European elections, Mr. Anastasiades, in one of the party speeches he made to his supporters, as President, expressed his concern in the event AKEL might prevail and thus supposedly “defame” Cyprus internationally. Ridiculous things, considering that just a few weeks ago the World Bank “awarded Cyprus” a gold medal in the table in relation to corruption.
It states in its Report that “Cyprus witnessed the biggest increase in levels of corruption across the EU in the five years 2013 to 2018”.
But it’s not just the World Bank that says it. The European Commission, the European Parliament and the European People’s Party, of which DISY is affiliated, also say this. We became first news in international news agencies and front page news in numerous international media. We have never experienced such defamation and vilification.
Cyprus has registered a record in the levels of corruption during the years of the Anastasiades-DISY government. I will not list them all because we will be here until Christmas. I’ll just list the following:
It is not just the millions of Euros from the family circle that was channeled abroad before the haircut on bank deposits was imposed, the “services” rendered to the Archbishop, the scandal starring the former Deputy Attorney General Rikkos Erotokritou, the appointments and promotions for which all those considered as “worthy” very curiously all happen to belong to DISY.
It isn’t only the scandal surrounding the selloff of the Cyprus Cooperative Bank, the Presidential pardons granted to pedophiles, the unprecedented clientelism and cronyism, the illegal property developments, the unlawful enrichment of cronies, the sharp rise in the crime rate, the institutionalized racism that has claimed many lives, the undermining of institutions and many others.
There is the icing on the cake: the revelations about the activities of the President’s own law firm, his clients and the granting of citizenship to suspected and wanted persons.
Furthermore, all that has been made public about the spy van case is revealing of the prevailing chaos of the Anastasiades-DISY administration.
The President of the Republic wonders if he himself is under surveillance, while the DISY President is asking who is following whom.
They once again have left society in shock with their indifference or inability to protect citizen’s fundamental rights
They play games with everything and are mocking everyone.
Cyprus is going through its worst period ever. Unfortunately, every time a scandal is revealed, instead of the government ruling forces reflecting on it and showing that they understand what is happening, they angrily point their finger at us. Why?
Because we the “zeros” – as the President termed us – dare to speak up.
We are given lessons on “unity” and “patriotic” duty.
We are accused of waging “destructive criticism”.
But what else must be done to talk about corruption, interwoven interests and the rotten situation that the government ruling forces and their clique have created?
They must at long last admit it.
They become angry because they know we are telling the truth even when AKEL in many cases is on its own and even when at times other political parties, instead of speaking up, are claiming that they did not see, did not hear and did not understand.
They know we are telling the truth when we point out that when Anastasiades-DISY took over the handling of the Cyprus problem from D. Christofias they had ‘inherited’ significant convergences that had been recorded, with the chapter on energy having registered significant preconditions, with the water issue resolved, with educational reform set in motion, and with the reform of local government at an advanced stage, with the dossier on the halloumi case almost ready. They subsequently simply dismantled everything.
They know we are telling the truth when we reveal to the people of Cyprus what really happened at Crans Montana, and what subsequently followed.
They know we are telling the truth when AKEL is foreseeing where their policy on the Cyprus problem will lead us to.
They know we are telling the truth when we remind them of the illusions they were cultivating concerning our EEZ, about the forging of alliances that would supposedly not permit Turkey to threaten Cyprus, about the approval of measures that would supposedly “hurt” Turkey.
They know we are telling the truth when we speak about their failed policy that has created the poor, homeless and young people without hopes.
They know we are telling the truth when we are talking about the rich oligarchy getting richer with their assistance, at the same time as many people are struggling to make ends meet.
Instead of worrying about all this, they accuse us of “betraying” our homeland and of representing “foreign interests”.
Let’s make it very clear once again.
Partition is treason. For sure, it isn’t AKEL that is discussing such a thing.
We have never served “foreign interests”. They should search for these interests in the Cypriot community of Cambodia and Malaysia; in the accusations made by international organizations about the passports scheme and money laundering.
We have never acted with a hidden agenda and by lying.
We address the people clearly and honestly.
We are accountable only to the Cypriot people.
Everyone should realize this by now.
AKEL will not yield and submit.
It will not succumb to terror.
It will not be silenced.
AKEL cannot be coerced by anyone, neither inside, nor outside Cyprus.
That’s precisely the reason why the people trust it as an honest, sincere and honorable voice. It is its boundless force.
We devote all this strength and will continue to devote it to Cyprus. We shall work hard and together with all those forces and circles ready to see how we can take the country and society out of any adventures.
As for the rest of them, they shouldn’t expect that we will compromise, because they will be waiting forever…
