Foreign investors are living up to do business in Cyprus
Signing the loan agreement with Russia that will provide Cyprus with much-needed cash only goes as far as solving part of the problem as the 2.5 bln euros will just about last this government until the end of 2012. Other measures to curb the public sector deficit must be implemented immediately and by consensus with all social partners, particularly employer and business organisations who are the ones driving the economy.
This, however, does not mean that the pro-union administration must give in to blackmail and demands that simply postpone and worsen the chances of restoring public finances.
Prospecting for LNG, Qatari ventures or other investments will simply throw money into the civil service black hole that will not go away until this government overhauls the government machine and the ridiculous way the Public Service Commission grades all workers as “excellent” or “very good”.
Giving the impression that the money from Russia allows for a relaxation of fiscal measures is simply naïve. On the other hand, attacking private sector employers who are in dire financial straits for freezing the 13th salary bonus is also childish and shows that some government officials are not at all serious. The statement that civil servants got paid and were expected to inject money back into the market was also ludicrous.
Adding to the bizarre news was the Finance Minister’s statement that foreign investors are living up to do business in Cyprus, including energy trader Vitol that is about to build a multi-million storage facility in Cyprus. Surely, this is old news, Minister. The deal for Vitol was signed earlier this year, pre-Mari, which suggests that perhaps the Minister was ill-informed.
Instead of attacking the business community, blasting the opposition and labeling “foreign markets” as demons, the president and his administration should look to cooperating with others outside their closed circle of friends and sympathisers and start talking to (or listening to) those who may have solutions to offer.
