The Cyprus government will announce soon a new package of financial measures, Government Spokesman Stephanos Stephanou said today.
Speaking to the Press, Stephanou noted that the announcement should not be expected today or on Friday and added that the main issue at stake right now was not the consolidation of public finances but the recapitalization of banks.
The present government, he said, has taken a series of measures for the economy, more than any government in the past.
Commenting on a package of proposals, issued on Wednesday by the European Commission, Stephanou said it was clear that the main problem facing the Cypriot economy was the exposure of local banks to Greece.
On structural problems of the economy, the Government Spokesman said the government has already adopted a series of measures, including those concerning the pension scheme for the public service, the decrease of public servants and others.
On the ongoing discussion concerning the Cost of Living Allowance (COLA), he said that the government’s position was to restructure the allowance and improve the system, following the dialogue with the social partners. He added that the issue was included in the ongoing dialogue, with the consent of social partners.
Moreover, he said that the government was against the extension of the retirement age in Cyprus, which stands at 65 years for both men and women and is usually higher than in the rest of the EU member states.
Speaking on financial consolidation measures the government has already adopted, the Government Spokesman said that the decisions are targeted and coherent and fall out of line with one-dimensional austerity measures that are being promoted elsewhere in the EU.
“We don’t agree that the government is indifferent and not taking measures” he said. Asked finally over the criticism that Cyprus is being considered as unreliable by the international markets, Stephanou said “we consider this unjust for the Cypriot economy”.
Last December, the government introduced, amid the continuing financial crisis, a series of austerity measures that would enable Cyprus to meet its medium term commitments to the EU.
The European Commission adopted on Wednesday a package of proposals, concluding the second European Semester of economic policy coordination and giving guidance for national policies in 2012-2013.
