EU sent fiscal warning to Cyprus

* Christofias calls for “understanding” *

EU Economic Affairs Commissioner Olli Rehn said on Tuesday that the European Union had sent early warning letters to five member states that risk violating fiscal rules next year.
Rehn told reporters those countries were Belgium, Poland, Hungary, Cyprus and Malta and said he expected the states to take appropriate measures.
President Demetris Christofias has called for understanding to help meet the financial challenges.
“Our job and duty is to reach the necessary understanding in order to deal with the adverse financial prospects that lie ahead,” he said, responding to Rehn comments.
Speaking in Limassol, President Christofias noted that “there are rules in the EU, whether we like it or not”, adding that “Olli Rehn is doing his job and we must do ours”.
“Our duty is to confront the crisis and avoid entering the financial stability mechanism, since the opposite would entail adverse consequences for all Cypriot people,” he said.
Asked whether Wednesday’s Cabinet meeting would discuss a package of new austerity measures, the president said that the government is constantly discussing such measures, adding that the issue at stake is for the measures to be accepted by the social partners and the House of Representatives.