Cyprus President Nicos Anastasiades said he is ready to appeal an Administrative Court ruling that deemed cuts on civil servants pay back in 2012 unconstitutional, after some 200 public servants sued the government.
Anastasiades said the government is ready to file an appeal, promote constitutional changes or site EU regulations amongst other measures if the Supreme Court validates the decision taken by the Administrative Court last week.
The Administrative Court ruled that salary cuts imposed on Cyprus civil servants as part of an austerity drive in 2012 are unconstitutional, a decision that could cost the state a billion plus euros in compensation.
The court said that the pay freeze, a 3% contribution to pensions, and a reduction in civil servants’ pay was in violation of article 23 regarding the protection of the right to property. These austerity measures were imposed by a cash-strapped government that tried to reign in debt as the economy went into meltdown.
Attorney General Costas Clerides confirmed that the state’s legal services are to hand over to the president a complete evaluation of the court’s decision.
In an interview given to state television CyBC, President Anastasiades called for the support of the parties, arguing that “the decisions were taken jointly back in 2012 with all parliamentary parties”.
Anastasiadis said that although the ruling of the Administrative Court is fully respected, the government has the right to appeal as the decision will affect the economy of the country.
Anastasiades wondered whether the court took into consideration the doctrine of necessity, and if the court took into consideration that the decision for pay cuts in the public sector was taken to fend off the country’s bankruptcy.
He added that measures were dictated by the country's best interest.
“Therefore, in full cooperation with the Attorney General, we are looking into the various legal aspects, while along with the parties we are to look into other measures that can be taken, without reducing salaries to significantly mitigate the consequences," said the president.
Measures that the government could invoke are EU regulations overriding the constitution of the Republic of Cyprus. Anastasiades also talked about amendments to the constitution taking in consideration the doctrine of necessity as was the case in 1974.
Anastasiades said that only the people involved in the lawsuit will be entitled to compensation. He commented that in any case the government has gradually begun to reinstate public sector wages.
