Vigilance needed concerning the economy, says Cyprus President

President Demetris Christofias said on Sunday that vigilance is necessary in order to avert deterioration of the economy, due to the financial crisis.

Speaking at a conference organised by AKEL women's movement, Christofias referred to the measures his government took last year to boost the economy, adding that ''it is obvious these were not sufficient.''

''There is a need and an opportunity to tackle courageously structural problems of the economy,'' he said, pointing out the ''enormous state expenditure on the huge state machinery.''

Christofias also pointed out the need to combat tax evasion, which deprives the state of hundreds of millions in revenue, and said that better planning of social benefits is necessary.

Asked by reporters on his admission that the government measures were not enough, the President said that the measures taken last year were described by experts as sufficient, adding however that ''it seems that the global financial crisis was deeper than what the experts had initially predicted.''

He declined to give further details on the anticipated government package of measures, in view of the announcements to be made soon.

''We need to be vigilant and to take measures which should have been taken long ago,'' he concluded.

Yesterday, Finance Minister Charilaos Stavrakis said the new government package will be ''balanced and will maintain growth in a socially fair way.''

Stavrakis has warned that unless steps are taken, Cyprus' budget deficit will grow from 6.1% to around 7% in 2010 and 10% in 2013.