New government commitments in the updated Memorandum signal more burdens on people
Statement of Charis Polycarpou, member of the Economic Research Department of the C.C. of AKEL
AKEL C.C. Press Office, 15th June 2015, Nicosia
It is obvious that the Government has long since chosen the path of assuming unilateral commitments for the country, through the updating of the Memorandum. Without any political and social dialogue it is taking decisions that are harming society. These decisions are shifting even more burdens of the economic crisis on the backs of working people and the weaker income strata, serving the interests of the few and the privileged.
In the latest update of the Memorandum, the Government has undertaken a number of new commitments to privatize the Cyprus Electricity Authority (EAC), the Cyprus Telecommunications Authority (CYTA) and the Cyprus Ports Authority (ALK):
- For the privatization of the Electricity Authority in 2015 a decision is to be taken by the Ministerial Council on the unbundling and ownership structure of EAC.
- CYTA is to be converted into a Limited Liability Company and the outline and structure of its privatization should be prepared by then end of the year.
- With regards the Ports Authority the procedure to handover the Port of Limassol’s commercial operations should begin and the role of the organization should be limited to a regulatory body by the end of 2015.
AKEL is not bound by these unilateral decisions, nor will it consent in general to these decisions and more specifically to the selling off of public wealth that is underway. The targets set out by the Memorandum on the economic benefits from the sale of organizations demonstrate that the state’s surrender of these organizations will be at done at cut prices.
However the cost to society and the economy will be even greater, given that the long-standing contribution of these organizations to state revenues and the development of the Cyprus economy is nullified.
Our position is clear. The Semi-governmental organizations can and should continue to be modernized, but this cannot be used as pretext for selling them off.
