Minister of Finance Charilaos Stavrakis has pointed out that consolidation of public finances was necessary in order to achieve growth and prosperity, adding that the Government's package of measures was balanced and the public sector would be shouldering the greatest burden of efforts to reduce expenditure.
Stavrakis was speaking on Thursday at Larnaca Airport on his return from Ukraine, where he held a series of meetings in an effort to settle pending taxation issues and examine practical ways to increase investments and trade between the two countries.
''We analysed and stressed the many advantages of Cyprus as a country through which they can invest in Europe, and I believe a very positive climate is emerging. The economy of Ukraine, which was heavily impacted by the global financial crisis last year, is now slowly recovering,'' he said, adding that ''there are many opportunities for further investments by Ukraine in Cyprus.''
Referring to the package of measures the Government has submitted to the political parties and the House of Representatives, Stavrakis said operational expenditure for 2010 would be by at least 80 million euros less than that budgeted, and that money would also be saved by the continuous reduction of staff in the broader public sector.
Stavrakis said the private sector would also be participating in this effort and that ''everyone will contribute according to their potential.''
Commenting on reactions by political parties to taxes, Stavrakis said that the Government would be handling the situation in a responsible manner, and had already submitted a balanced and socially fair package of measures to the House and the parties.
''If the measures are not approved by the House, the Government will proceed and continue to handle public finances in the same serious and responsible manner. If the measures are not approved, they cannot be implemented. If we do not achieve the consolidation of public finances, we run the risk of following the path of Greece, Italy, Portugal and Spain, where the poor public finances have brought on huge financial problems,'' he said.
Stavrakis added that he was optimistic that the House would act in a responsible manner and assured that the Government would follow a responsible and serious fiscal policy, in order to bring Cyprus out of recession.
