Cyprus fiscal consolidation remains a necessity

Cyprus Finance Minister Charilaos Stavrakis stressed on Wednesday that fiscal consolidation remains a necessity, as the Cypriot economy recorded growth of 0.1% in the first quarter of 2010.

''Fiscal consolidation is absolutely necessary and the marginal improvement of the Cypriot economy in no way means that the importance of the fiscal consolidation package is over,'' Stavrakis said speaking to the press.

In statements on the occasion of the approval of Cyprus' Stability Programme by the European Commission, Stavrakis said that ''our programme has been fully accepted,'' adding that European Commissioner for Economic and Monetary Policy Oli Rhen's report on Cyprus ''was one of the best reports compared with other EU member-states.''

''We have maintained Cyprus' credibility in an extremely difficult environment,'' he added, recalling that after the submission of Cyprus' stability programme the opposition made a series of pessimistic comments suggesting that the programme would be returned.

Responding to a question whether the Ministry would revise its forecasts for economic growth of 0.5% in 2010, Stavrakis said he would not make any revision.

''Our forecast for marginal growth remains the same,'' he said adding the final figure is not important.

''What is important is the emergence of Cyprus from recession,'' he concluded.