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There is a lot of talk nowadays about an impending cabinet reshuffle some time in the new year, probably driven by concerns of the fragile coalition breaking up over disagreements on the national issue, or maybe even fuelled by a lot of idle time and cheap wine.
Although we agree that some ministers need to go, the real issue here is how to change the government’s rigid economic policy in order to adapt to the present times of crisis and the need for aggressive cutbacks, particularly in the public sector.
It seems incomprehensible that the present administration refuses to allow for new hirings at the Securities and Exchange Commission, at a time when the return on investment on such a move would be rapid and tenfold, opening up to new financial services companies setting up shop and recruiting from among our highly trained and skilled human resources pool. And this, just a few months after this government took in another thousand civil servants (as if we didn’t have too many, already).
With tourist arrivals and tourism sector revenues falling rapidly, it is simply illogical for the government to cut back on its promotion and marketing budgets. Now is the time for Cyprus to advertise the few advantages it has left, while encouraging more niche investments that will result in value-added returns (sports, health and medical tourism, golf and marinas, wine exports, quality food, etc.).
The grand plan of boosting public projects should also be put on a faster track, as all we have seen so far is some contracts speeded up by a mere month or two, whereas other revenue-earning projects, such as marinas, are being delayed no thanks to the same civil servants that refuse to give up any pay increase or other benefits.
Instead of giving in to the whims of the unions that are intent on blackmailing the government into handing them more perks and pay rises, President Christofias should tell the civil servants to make this sacrifice just once and allow for a freeze on pay rises, contractual terms for new recruits and raising the retirement age. If he doesn’t do it now, it could be too late for all of us, as a spiraling public sector deficit will throw the economy off balance with repercussions throughout the labour market.
