DECISION OF THE PLENUM OF THE CENTRAL COMMITEE OF AKEL
29th April 2013, Nicosia
The Plenum of the Central Committee of AKEL convened today Monday 29th April 2013 to study the given situation that has evolved on the Cyprus economy after the conclusion of the Memorandum and the Loan Agreement between the Anastasiades government and the European Union and after discussion based on an in-depth scientific study concluded the following:
1. It is an undisputed fact that Cyprus is facing historical decisions that will determine the economic, but mainly the political future of Cyprus.
2. The Plenum of the Central Committee of AKEL declared its readiness to support the Government in the difficult work of tackling the economic crisis provided that its actions were moving in the proper direction. However, AKEL had also clarified that it would not consent to measures that would condemn the Cypriot people as a whole and in particular the working people, the unemployed, young generation, pensioners and the vulnerable groups of the population to poverty and deadlocks.
3. The Eurogroup decisions on 15th March and the 25th March agreement have created new, unprecedented negative and disastrous facts for the Cyprus economy. The very serious impact on the banking sector and on the economy more broadly and the resulting recession due to the measures that have been agreed, take away the possibility for the recovery of the Cyprus economy in the coming period, diminish the social role of the state and create conditions for a prolonged deterioration as a result of the inevitable conclusion of “new Memoranda”.
4. The accumulated experience of implementing Memoranda of absolute austerity in other countries, but also the estimates about the future of the Eurozone in relation to the economic policy to be followed in the future as well, demonstrate that sticking to the current Memorandum, which constitutes a serious negative qualitative differentiation in relation to the memorandum of November, will be accompanied by a significant loss of sovereignty, prosperity along with the rise in poverty. We consider that sticking to the Memorandum will have serious negative consequences both for the Cyprus problem, as well as for issues related to the management of the Natural Gas.
5. As the scientific study we had before us illustrates, the causes of the current crisis have as a fundamental starting point on the one hand the world economic crisis, the neo-liberal policy of economic austerity and management of the specific economic model of development and on the other hand, the responsibilities of the banking sector in Cyprus. Based on all these facts, the scientific analysis conducted leads to the conclusion that the only option for Cyprus is a solution outside the Loan Agreement and the Memorandum. Seeking such a solution is most probably tantamount to a decision by Cyprus to exit the Economic and Monetary Union of the Euro.
6. This solution is in addition a painful choice. The anticipated effects create the need for a maximum political support by the people and require sacrifices.
7. However even though this is a painful choice under the circumstances it is also a serious alternative as the country will free itself of political commitments that can give a perspective and the possibility for development and growth in the future based on a new model of economic development.
8. The implementation of such a decision it were adopted must be pursued through negotiations between the Republic of Cyprus with the European Union for an orderly exit and based on the principles of International Law.
9. The Plenum of the C.C. of AKEL without ignoring the dangers and difficulties of implementing such a decision addresses the Government, the political and social forces and the whole of Cypriot society and puts before them the proposal for starting a constructive political and social dialogue in this direction. It is our view that such a serious decision must be taken by the people themselves in a referendum.
