The implementation of the Memorandum leads to equally unbearable results for the economy

 

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

AKEL C.C. Press Office, 17th September 2014, Nicosia

 

Recently the government is attempting to convince Cypriot society that the implementation of the Memorandum is leading to a new economic miracle which our country is experiencing. Unfortunately, neither the people are prospering, nor are the economic indicators and figures improving:

• Cyprus continues to be in deep recession, given that in the second three month period of the year GDP fell by 2.5%, following a decline of 3.9% in the first three month period, recording the biggest percentage fall in recession in the European Union. Indeed the forecasts are that the recession will continue even into 2015, according to the study conducted by the University of Cyprus.

• Public debt continued to increase, exceeding 112% of GDP, the fourth worst performance registered throughout the European Union. In fact, its annual increase is the biggest in the European Union, given that when compared to the first three month period of 2013, Cyprus’ public debt increased by 24.6%.

• Employment recorded the biggest reduction in the European Union for yet another three month period, reflecting the continuous fall in employment in Cyprus. Today’s report in the press even points to the biggest fall in population numbers in the European Union, a phenomenon which stems precisely from the enforced migration of young people to find work abroad.

• In addition, Cyprus registers another European first also with regards pay cuts since in the second three month period of 2014, wages fell by 4.5% compared to the same period last year.

These negative firsts intensify the concern about the results of the implementation of the Memorandum in our country. As long as the government continues to simply desire the Troika’s approval, by blindly sticking to the policy of austerity and cuts in working people’s incomes, the results for our country will continue to be equally unbearable.