The changes of the new memorandum intensify the negative impact to the society

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

AKEL C.C. Press Office, 2nd June 2014, Nicosia

The new agreement on the Memorandum between the Government and the Troika does not surprise us at all, given that it continues on the same failed path of brutal austerity and deeply anti-social reforms. The Government instead of projecting the Troika as a pretext for any reform it itself wishes to implement should seek to become less submissive to the Troika and more beneficial to Cypriot society.

It is now clear to even its most well-intentioned judges that the objective of the Anastasiades – Democratic Rally party government is neither social welfare, nor the protection of labour rights, let alone the effective tackling of unemployment, but rather solely the faithful implementation of the Memorandum, so that every time it receives the Troika’s congratulations. Its aim is to consciously serve a tiny minority of large private interests to the detriment of the Cypriot people as a whole.

It is with concern that we note that in the new Memorandum as well a number of changes are increasing the burden society is called upon to bear:

– An increasingly suffocating framework is being created for the confiscation of households and in addition a provision is being introduced so that these appropriations will be an exclusively private process.

– The way is being paved for massive sales of loans to speculative investment funds, thereby increasing the danger of households losing their property.

– The character of the General Health Scheme is changing with the involvement of private insurance companies, resulting in the dramatic deterioration in the provision of health and medical care.

– It is now possible to visualize the introduction of a Minimum Guaranteed Income to lead to the further dismantling of social policy and social benefits.

– In relation to the commitments made by the Government towards the Troika concerning the Cost of Living Allowance, we note that these are violating the norms of labour relations.

– Finally, we cannot but note that the Government, despite the persistent commitments given to the working people in the Semi-governmental organizations, is fully intent on pushing for the full privatization of the Cyprus Telecommunications Authority CYTA by the end of the year.

We are clearly dealing with a slow but steady process of the full liberalization of the economy, which aims to satisfy first and foremost the markets and foreign speculative organizations, leading to the ever increasing impoverishment of our people, rising mass unemployment, especially among young people, but also even deeper cuts and dismantling of the welfare state.