Government’s blind obedience to Memorandum and Troika policies is hopeless

 

Statement of Stavros Evagorou, Deputy Parliamentary Spokesperson AKEL-Left-New Forces

AKEL C.C. Press Office, 7th May 2015, Nicosia

 

In the end the Report issued by the European Commission on the Cyprus economy has ruined the festival the government and ruling forces had organised to celebrate Cyprus entering the markets.

The European Commission forecasts continuing recession with GDP declining by -0.5% for the year 2015 as well. That is to say, both the forecasts made by the University of Cyprus, as well as AKEL, have been confirmed, which also take into account the negative economic developments in Russia.

The Government must understand that the blind obedience and subordination to the Memorandum and the Troika’s policies is hopeless.

The policies of austerity and cuts in wages, pensions and social benefits, together with the cuts in health and education and the overall reduction in expenditure on development are killing demand and therefore do not lead to development and growth.

At the same time, the banking sector, with the highest interest rates in Europe and the biggest percentage of non-performing loans in the world, is unable to fund the economy, thus contributing to keeping the Cyprus economy in recession.

The picture becomes even bleaker when we consider the tens of thousands of unemployed, our compatriots living below the poverty line or who are fed by the social food banks.

Therefore the kick-starting of the economy is postponed for next year too, because of the government’s insistence on pursuing the dead-end policies of the Memorandum; an insistence that perpetuates the vicious circle of recession and austerity.