Cyprus keeps the worst record in the EU with regards the drop in wages

 

Statement of Haris Polycarpou, member of the Department of Economic and Social Research of AKEL

AKEL C.C. Press Office, 20th December 2014, Nicosia

 Cyprus continues to have the most negative record in the European Union with regards the drop in wages for 2014 in the European Union.

According to figures released by “Eurostat” for the first nine months of 2014 wages fell by an average of 4%. This reduction, along with the reduction of 6% registered in 2013, resulted in the loss of 10% in working people’s purchasing power in less than two years.

It is now clear that the biggest victim of austerity and cuts implemented by the Government, assisted by the Troika, is the working people. The crisis is being loaded on working people’s backs and this punishes them daily.

The government claims that the reduction in labour costs will improve the competitiveness of the Cyprus economy. The figures refute this myth. Both in 2013 and 2014, Cyprus’ exports fell. The reduction in labour costs did not improve the economy’s competitiveness; instead it only increased the profit margin for companies.

We hope that these figures even now will force the Government to think about changing course in the economy, far from the blind faith shown in the dead-end policies of austerity and the targeting working people; that it will at last realise that the road to economic recovery is through growth and the fairest distribution of the wealth.