Government Spokesman Stephanos Stephanou has made it clear that no decision has been made about Cyprus’ admission to the European Support Mechanism nor any investigation of intent has been conducted concerning this issue.
Commenting on press reports on the issue, Stephanou said that the Government is considering several options for the recapitalization of banks, adding that one of these options is to resort to the EU Support Mechanism.
He reiterated once again that no decisions have yet been made on this issue.
Asked whether the decision on the recourse to the EU support mechanism should be taken before the elections in Greece on Sunday, he said that the Government is taking into considerations various things based on the options it has.
In reply to another question, Spokesman noted that the Government is evaluating the situation and moving towards the realization of the goals of its fiscal policy and the recovery of the economy, while continuing the effort to recapitalize banks.
Asked whether Cyprus’s possible recourse to the EU Support Mechanism would be done because of the banks, Stephanou reiterated what the Minister of Finance had said yesterday namely "we would not discuss the option of the European support mechanism if there was not the issue of recapitalization of banks."
Asked about the measures towards fiscal consolidation, he said that the President of the Republic during his recent press conference has said that measures would have been taken in order to achieve the fiscal targets set by the Government, noting that Finance Minister is working very hard towards this direction and at different levels.
On the issue of Cost of Living Allowance (CoLA, or ATA in Greek), he said that the decision on the restructure of CoLa following a discussion and an agreement with social partners has already been taken by the Government in the context of the third economic package adopted last December.
Asked about the issues of the recapitalization of banks and borrowing money from another country, Stephanou said that the Government continues the efforts for both issues.
Moreover, the Government Spokesman referred to the statistics on public sector employment for May, noting that these statistics show that the downward trend in employment which recorded during the first quarter of 2012 compared with the corresponding quarter of 2011 , continues in the month of May.
"It is by taking measures to improve the economy and solving structural problems that the government succeeded in reducing the fiscal deficit by 0.8% of GDP in the first quarter of 2012 compared with the corresponding period of 2011," he said, adding that "the decrease of the fiscal policy is a very positive development in recessionary conditions, as the Governor of Central Bank had said at the House of Representatives”.
In conclusion, he said that this decrease was possible because of the measures taken by the Government, noting that spending cuts and deficit reduction is a result of the measures being implemented by the Government.
