“The cost of the solution mustn’t be loaded on the backs of the people”

Excerpts from an interview with Aristos Damianou, member of the Political Bureau of the C.C. of AKEL and AKEL MP

Sunday, 15τη January 2017 «Phileleftheros» newspaper

 

“Our goal of course presupposes steadfastness on positions of principle, assertion, but also pragmatism”

Your views on developments surrounding the Cyprus problem?

AD: We are talking the day after the critical meeting in Geneva. Pending a thorough briefing, what has been recorded is the continuation of the negotiation procedure with regards the five chapters that constitute the internal aspects of the Cyprus problem, but also with special provisions on the issue of security and guarantees.

As we know, the President of the Republic had opted for a procedure different from the one AKEL had proposed. However, right now the central question for our community is to focus on the negotiations that will follow by being very well prepared, but also to focus on forging unity around the goal of a correct solution that will liberate and reunite our people through the transformation of the unitary but shackled state of 1960 into a Bicommunal Bizonal Federation.

This goal of course presupposes steadfastness on positions of principle, assertion, but also pragmatism.

 

“The solution of the Cyprus problem will bring economic benefits”

What are the economic opportunities, but also economic dangers arising from a possible solution of the Cyprus problem?

AD: We must acknowledge that of its own accord as a form of state structure, Federation is a costly system. Furthermore, we should also recognize that in practice the resolution of the property issue implies an economic cost, which certainly cannot be loaded on the backs of the victims of the occupation. However at the same time we should also recognize that the economic opportunities opened up by a solution of the Cyprus problem that will reunite the territory, the people, the institutions and the economy are enormous and we endorse this perspective.

“Any minor improvements do not justify any celebrations because the economic facts are depressive”

How do you see the economy’s course in 2017? Do you think that the improvement in economic indicators goes hand in hand with the improvement of citizen’s economic situation?

AD: It is certainly true that some economic indicators have improved. Besides, this is what occurs as a rule after every crisis of the system. The most important thing right now is to focus our attention with greater sensitivity on the tens of thousands of our compatriots who were devastated by the tsunami of the economic crisis. At the same time, any minor improvements that have been recorded do not justify any celebrations because the economic facts are depressive.

More specifically, Cyprus has the highest percentage of non-performing loans and the 5th worst position as regards unemployment across the EU.

Unemployment among young people up to the age of 24 stands at 27%, while migration and the non-repatriation of Cypriot university graduates numbers tens of thousands of young people.

The poverty threshold is proportional to that of the postwar 1974 period.

6 out of 10 Cypriots say they barely make ends meet.

29% of our citizens are at risk of poverty.

Public debt has increased in absolute terms by € 200 million per year and wages have been falling continuously for 15 quarters, while figures released by “Eurostat” classify Cyprus last in the table of expenditure on social protection.

“We will do everything possible to prevent the selling-off of profitable Semi-governmental organizations to private interests”

AKEL, together with other opposition parties, has voted down the funds earmarked for consultancy services by the government’s privatization unit in the state budget. Do you believe that by doing so the Government’s plans will be stopped?

AD: The budget cut you are referring to had two goals. First, to stress our determination to resist the governmental and technocratic machinations whose main goal was and is the policy of “less state intervention”. What people recognize, because this is exactly what this policy means, is the selling off of public wealth and property. The second goal was to halt provocative contracts, at the average Cypriot, if he/she is not unemployed, has to live on € 700 to €800 a month.

I do not know what the government’s next steps of will be, but I can tell you for sure that from a position of principle, we will do everything possible to prevent the selling-off of profitable Semi-governmental organizations to large private interests. Simultaneously, through the submission of proposals both within and outside the House of Representatives, AKEL will work for the necessary reorganization and modernization of these organizations.

 

“Government privatization policy a political position and not –a Memorandum obligation anymore”

Does the fact that in the Memorandum, the international creditors had estimated that the State will have revenues of € 1, 4 billion from privatizations, worry you that the Government will perhaps seek to obtain that revenue from other sources?

AD: The international creditors didn’t calculate this amount of revenues from privatizations on their own. It was done with the agreement of the Anastasiades-DISY government. You should therefore contact the government to pose the question whether the amounts that are being heard as a possible selling price, for example of the Cyprus Telecommunications Authority (CYTA), meet the target they jointly set with the Troika. And of course, it is well-known that at the moment there is surplus in the public coffers, from taxes and other sources, which do not justify the dogmatic continuation of the policy of privatizations. That said, we don’t disregard the constant policy position promoted that “for the government privatizations represent a necessary structural change” and therefore – I add – a political position and not – anymore – a Memorandum obligation.

What will you do in the event of the Privatization Unit continuing to function as now there are no funds?

AD: We are already in mid-January. The State Budget is a law of the Republic of Cyprus. Besides the fact that this would constitute a political and institutional provocation, it would probably also constitute an illegal action.

“We do not seek a reform that will not combat the root causes of problems and not promote radical and progressive changes

The challenge for the government is the implementation of structural changes which nevertheless are stagnant, mainly as a result of the opposition’s resistance and obstacles. Why hasn’t your Party consented to the Civil Service Reform Bill?

AD: Structural changes remain stagnant because the government has never made a real effort to apply them. The so-called “reform” you are referring to was not only rejected in the House of Representatives by AKEL, but by all the political forces except the governing DISY party. Through the submission of our own proposals and positions we are ready to engage in a real and meaningful dialogue with the government, but also with the involved parties; a dialogue that will have as its aim a reform that will modernize the public service and serve citizens and not a balancing act (as was the attempt that failed). We do not seek a reform that will not combat the root causes of problems and not promote radical and progressive changes.

Protection of the main family home

After the Supreme Court rulings, does AKEL intend to undertake a new legislative initiative to protect the primary family home? Do you consider the steps taken in this direction as satisfactory?

AD: I will answer you as follows: if the Supreme Court decision that our proposals which formed a protective net against foreclosures contained elements of unconstitutionality, given that inter alia, they constituted an intervention in contract law, I find it difficult to understand how in terms of legal science the haircut on bank deposits is considered a legitimate practice. Or how the serial unilateral changes of loan agreements by banking institutions are considered a legitimate practice.

Regretfully, I do not think that adequate measures have been taken to protect the primary family residence, in reality of the family home. This is because besides the respected in every case decision of the Supreme Court there was a political majority in the House that approved further haircuts in the protective net which the government itself sought and gained the support of parties in Parliament. We are elaborating proposals and planning actions, without ignoring the difficulty arising from the Supreme Court decisions, but also the fact that currently there are petitions being examined before the Supreme Court on similar issues and we should await their outcome before taking any action.

How do you reply to the government’s accusations about a “ruling Parliament”[1]?

A “ruling Parliament” existed for the most part during the previous Parliament’s mandate, when in full harmony both DISY and DIKO pursued a policy in the interests of the privileged and select few, voting against or significantly altering the previous government’s bills, which were aiming at either the better and more just distribution of burdens. Bills that were tabled included the taxation of wealth, or for an increase in social benefits. Today we do not have a “ruling Parliament”. To put it simply on some issues, for its own reasons, the Democratic Party DIKO doesn’t totally identify with the economic policies implemented by governing DISY party, but sides – a development which we welcome – with the other opposition parties.

[1] The Republic of Cyprus has a presidential system where there is a distinct separation of powers (executive, judicial and legislative). Although the given Government tables Bills attempts may be made by a circumstantial majorities in the House of Representatives to obstruct Government Bills and political choices.