AKEL ON DEEPENING OF MEMORANDA POLICIES
Statement by Stavros Evagorou, Deputy Parliamentary Spokesperson of AKEL – Left
We will not tire of repeating that the only way in which the one-way Memorandum path the government is blindly leading us to is a dead-end and is destroying the perspective of the Cyprus economy. Besides, an in-depth analysis of financial data isn’t required for anyone to arrive at this conclusion. You only have to take a look at the latest data and figures from the study conducted by the University of Cyprus on the economy’s outlook for 2014. The doubling of the recession in relation to the Memorandum that is forecasted demonstrates that the recovery of the Cyprus economy and the creation of conditions for growth are unfortunately an impossible dream according to today’s given situation.
At the same time, the economy is faced with a deeply damaged banking sector. The closure of one of the systemic banks, the imposition of the haircut on the deposits, but also the growing disagreement between the Government and the Governor of the Central Bank have a direct affect on the liquidity which is channelled in the market, resulting in thousands of households and small businesses on the verge of collapse.
Unfortunately, the first months of the implementation of the Memorandum were the strongest pretext for the Government and ruling powers to illustrate the real character of the policies they wish to implement. The budget submitted for 2014 has been cut by €626 million, as well as the funds for development by 20%. The cuts in social policy have reached €127 million, indeed at the same time when the Government showed a frantic obsession to increase its revenues through devastating increases in the immovable property tax and vehicle taxes. Unfortunately it did not show the same passion for funds to be allocated for the vulnerable strata of the population, since it decided to cut €10 million from the social pension, the introduction of an admission fee for hospitals, general cuts in health spending, but also the elimination of the heating allowance.
It is clear that the above phenomena are not coincidental but are part of the vicious cycle we have entered. The austerity policies generate recession in the economy, which in turn force the need for additional cuts, thus exacerbating the recession. As AKEL, we believe that this insanity cannot continue any longer. It is our duty to search for alternative policies and an exit from the Memorandum path. These options do exist, as long as the Government and political parties are ready to discuss them.
