AKEL’s proposals for the adoption of measures to address the economic impact of the coronavirus spread

AKEL C.C. Press Office, 12 March 2020, Nicosia

The following are AKEL’s proposals to address the economic impact of the coronavirus spread which were submitted at the meeting held today at the Ministry of Finance:

The priority now is to protect public health. That is why the state must ensure that we have all the necessary human resources, services, medicines, and equipment available to us as a country to deal with any situation that may arise.

The following is a first approach, which will be developed as the situation itself evolves.

Health Sector:

To enhance the Health sector we propose:

1. The recruitment of additional medical, paramedical and other support staff should be done rapidly, so that the medical services can meet the increased needs for health care provision, the handling of support needs and ongoing and responsible briefing of citizens.
2. Cover the needs that will arise in the health sector (prevention/care/rehabilitation) through the approval of a supplementary budget within the framework of the European strategy to counter the effects of the coronavirus spread.
3. Creation of mobile units to provide prevention and home medical health care services for high-risk groups and the elderly.

Social policy and services:

1. Ensure the functioning of the State’s vital services.
2. Safeguard the supply of essential goods.
3. Set up mechanisms to provide support and assistance to high-risk groups, especially for the elderly.

Economy Sector:

The situation as it is evolving both globally and in Cyprus too is already effecting the economy.

The impact on both the global and Cyprus economy will depend on the magnitude of the coronavirus spread, as well as the length of time it will take to deal with the pandemic. The longer the period of the coronavirus, the greater and deeper the impacts will be.

• Elaboration of a comprehensive plan:

Precisely because we are confronted with an ongoing situation, a comprehensive plan to address the impacts on the economy and society needs to be elaborated, which should timely and rapidly be changing and adapting to the needs and problems that arise.

• Establishment of a Task Force

It is also imperative that a Task Force is established, which should continuously be monitoring developments on the ground and taking swift action to take ad hoc measures to address them in relation to the economy, enterprises, working people and society.

• Basic policy principles:

Basic principles in dealing with the impacts of the coronavirus should be:

1. Tackle problems and provide support to sectors and branches of the economy that will suffer impacts.
2. No victimization of workers, support of their incomes and jobs.
3. Dialogue, transparency and non-unilateral decisions on issues related to the economy and labour relations.

At the stage we are going through, tourism is under the greatest pressure, together with areas directly affected by the measures announced (culture, recreation/leisure, catering).

Measures should therefore be taken to provide support to these sectors. And of course, policies and measures should be elaborated depending on how the situation evolves.

Tourism:

• Extend the deadlines for paying taxes and social contributions in enterprises of the tourist industry, provided that the agreement that has been concluded with the trade union organisations is immediately implemented.
• To support domestic tourism, we propose expanding the plan to subsidize holidays for pensioners, but also developing a plan for other groups of the population.
• Support plan based on criteria for the areas of culture, entertainment and catering.

Economy and Labour:

What was agreed at the meeting of the Ministry of Labour between the government, employers and trade unions must be implemented. Particular emphasis should be given to:

1. Support the income of working people who are forced to be absent from their jobs.
2. Establishment of a mechanism, based on criteria, to cover unemployed workers in enterprises that have suspended their operation.
3. Safeguarding the incomes of working people who are forced to stay at home because of schools and care facilities being suspended.

Towards this end, we further propose:

1. Supporting the income of self-employed SME’s.
2. Simplifying and accelerating compensation/allowance procedures to address delays.

Other measures:

• Arrangements to meet the needs that will be created to extend unemployment benefit and cover provision of support from the Social Insurance Fund stemming from the effects of the coronavirus.
• Suspension of the foreclosure procedures in the case of primary family homes and small business premises for as long as the emergency measures for the coronavirus are in force.
• Issuing of a Decree to regulate fuel prices based on the new international oil prices to reduce costs for households and businesses
• Implement a strategy to monitor the market and stamp out profiteering phenomena as regards high demand goods and services
• Conduct an impact study on the effects of the coronavirus on the economy and individual sectors.