CYPRUS: Trade Unions meet to discuss austerity measures

The three main Trade Unions are meeting on Friday with President of the Republic Demetris Christofias in the context of a dialogue with social partners on the government’s counterproposals to the Troika (EC, ECB, IMF).

The island’s three main trade unions, SEK, PEO and DEOK, have all indicated their readiness to be constructive.

Political party teams dealing with the economy are meeting today with the Ministry of Finance’s Permanent Secretary Christos Patsalides to discuss the government proposals in preparation of a meeting between the President of the Republic and parliamentary parties on Monday morning.

Government Spokesman Stephanos Stephanou announced on Thursday that the positions of the government on the regulation and supervision of the banking sector, the sectoral and structural reforms, as well as the €300-million package to boost growth and foster job creation were sent to all parliamentary parties and social partners.

Cyprus applied in late June for financial support from the European Stability Mechanism, in a bid to recapitalize its banking sector heavily exposed to the Greek economy and to cover its refinancing needs. The adjustment programme is said to be concluded with the Troika representatives by the next Eurogroup meeting on November 12.

The Troika representatives are expected to return to Cyprus in the second half of October. The government has drafted a comprehensive fiscal consolidation package which will act as a counter-proposal to adjustment programme proposed by the Troika during their third visit to the island in the second half of October.