Cyprus

EU encouraged by Cyprus’ austerity measures

by fm

29th November 2011

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1 min read

EU Economic Affairs Commissioner’s Spokesperson Amadeu Altafaj described as “encouraging” the messages from Cyprus, Malta and Belgium regarding the austerity measures to be taken in order to constrain public expenditure and consolidate public finances.

Last week Commissioner Olli Rehn said that the EU had sent warning letters to five member states, including Cyprus, that risk violating fiscal rules next year.

He said that he expected the member states to take appropriate measures as they wouldn't meet their fiscal targets in 2012 without more spending cuts or tax increases.

According to Altafaj, the latest developments are encouraging, “given that Cyprus has already taken action”.

He said that if the measures are presented to Brussels in a short while, the country will not be at risk of EU sanctions.

Brussels has said it wants to see Cyprus’ 2012 budget passed by December 15.