United Democrats call for action
The United Democrats on Friday expressed concern about the rise in the number of educated, young unemployed in Cyprus, calling for action on energy, education and the euro among others to address the problem.
United Democrats Vice-President Praxoulla Antoniou-Kyriacou noted that according to the most recent Labour Force Survey, the unemployment rate had risen to 5.4% in 2005, compared with 4.7% in 2004.
The Labour Force Survey, which is conducted by the Statistical Service using EU-compatible methodology, shows a higher rate than the registered unemployed because it includes all people looking for work.
“The situation is much worse for the young, where unemployment rose to 12.7% in 2005 from 10.7% in 2004 and 8.9% in 2003,” she said.
Antoniou-Kyriacou noted that there is a particular problem among young people with tertiary education.
“An economy which does not value the new generation is a society without a future,” she said.
“We need to a focus on creating new sources of growth which will utilise a section of the labour force which is not propertly utilised, namely the well educated young, and create new sectors of growth where we can be competitive and reduce the dependence of the economy on tourism,” she told the Financial Mirror.
Energy, education, euro
Antoniou-Kyriacou said that the energy sector “is a key sector” for for the further development of the economy and the reduction of dependence on oil, and called for investment in renewable sources of energy such as solar and wind.
As for education, Antoniou-Kyriacou said that policy “should focus on news sources of development based on specialised knowledge… Human capital is the strength of Cyprus.”
The United Democrats is promoting the idea of European universities establishing branches in Cyprus, to help develop research and technology, and to development secondary education too.
“It will offer substantial employment to our youth”, said Antoniou-Kyriacou.
R&D, shipping, regulations
Anton-Kyriacou also called for a “decisive increase” in spending on research and innovation and to give a new quality dimension to the current sources of growth. Referring to tourism, she said, “The content of the product has to change.”
The United Democrats supports efforts to boost the shipping sector and calls for a policy which “encourages rather than discourages local and foreign direct investment, so that there is an increase in capital intensity and therefore in productivity.”
“We have to develop a more friendly regulatory framework for the licensing of investments,” said Antoniou-Kyriacou.
Delaying euro would be bad for Cyprus
The United Democrats are strongly in favour of adopting the euro according to the timetable expected, fearing that a delay would cause economic damage.
Noting that the economy has already “paid a high price” in the form of higher borrowing costs, lower investment and exchange rate risk because it has not yet joined the euro, Antoniou-Kyriacou, a former senior official at the Central Bank of Cyprus, said, “Any further delay in the introduction of the euro will added to the existing political uncertainty in Cyprus which is there because of the Cyprus problem.”
“As successful social policy can only be ensured when there is development and sufficient tax revenues for the state, so the emphasis should be on development rather than postponement.”
Fiona Mullen
