Cyprus decides on new economic measures and benefits

New measures aiming to constrain public expenditure and consolidate public finances are expected to be discussed at a Cyprus Cabinet convention schedule to take place Friday afternoon. The Ministerial Council is also expected to take decisions regarding social benefits.

President of the Republic, Demetris Christofias said on Wednesday that the Cabinet will be called upon to decide on new measures and the targeting of social benefits.

President Christofias underlined that Government is working methodically with a clear view not to burden the lower income citizens.

Finance Minister Kikis Kazamias in a statement to the Press on Thursday said that the Cabinet will conclude Friday discussion on the targeting of social benefits, and the bill will be submitted to the Parliament on Monday. The Government estimates that the measure will lead to a saving of around 200 million euros per year in a time when international rating agencies warn of the need to consolidate public finances and restrain public deficit, whereas the European Commission requests that measures be adopted prior to December 15, to ensure budget deficit reduction below 3% of GDP by 2012.

Kazamias noted that Government would announce additional measures in the next days, adding that such measures may include taxation of the wealthy.