New austerity measures demanded by the Troika

Statement by Haris Polycarpou, Member of the Economic Research Department of the C.C. of AKEL

AKEL C.C. Press Office, 23rd October 2014, Nicosia

The latest IMF report on the Cyprus economy unfortunately vindicates the concerns we have expressed from time to time about the Troika’s real intentions. They want to continue the policies of austerity and cuts they are enforcing even after the planned ending of the programme in 2016. Despite the Government’s public pledges for an earlier exit from the programme and its assurances that it will not implement any other measures, in its report the IMF urges the Government to take new measures that are equivalent to 3.4% of GDP even after 2016.

Although the Government has repeatedly declared its devotion to the austerity programme, we call on it to resist the new demands put forth by the IMF, given that the results of the austerity policies that have been implemented so far have aggravated the vicious circle of austerity-recession with tragic results for the working people, households and SME’s.