AKEL on the government’s economic package

Statement by AKEL C.C. Spokesperson Stefanos Stefanou

on the government’s economic package

AKEL C.C. Press Office, 28^th May 2020, Nicosia

To be able to make an overall assessment of the measures announced yesterday by the President of the Republic, we need to be informed about the framework, the terms, the criteria and the preconditions that are set. Without them, one cannot know how much and who will benefit and whether a rational and sound management of resources will in the end be made. When we have the necessary information, we will evaluate the measures as a whole.

We stress that our own priority – and the main criterion of our assessment of the measures – was and is that the state should support all those who have been affected by the crisis and are struggling to survive. These are primarily the workers, the vulnerable groups of the population, the SME’s and the self-employed workers, who represent the backbone of the Cyprus economy.

Regarding the announcements made, from a first reading of what has been pronounced, we note that there are measures that are in the correct direction, such as, for example, the provision of direct support to SME’s, the reduction in the VAT for restaurants and the subsidy of housing loans. However, there are also measures that need more information to be judged, especially with regards the criteria and preconditions, which will determine whether they are ultimately effective in supporting SME’s.

We also point out that there are announcements that are a repetition of previous unfulfilled announcements and obligations which the government had undertaken but has not fulfilled them.

With the government’s announcements, some issues have been clarified:

1. In the end, it was confirmed that there were tools for funding that the government had been refusing to make use of for many weeks. This refusal caused a long delay in providing support to the economy.
2. The only thing the government’s anxious attempt to incriminate and demonize Parliament refers to is its attempt to avoid consultation, but also the exercise of control over what it proposes and what will be done. The government prefers to consult with employers’ organizations and not parties. The unilateral taking of decisions by the government makes it also responsible for the results of the measures.