Cyprus parliament to debate cost-cutting in civil service

The Cyprus government submitted to parliament watered-down cost-cutting measures affecting civil servants on Friday, in a bid to secure approval from an opposition-dominated House for an austerity package that needs to save more than 1 bln euros.
The legislation would allow authorities to deduct between 1.5 and 3.5% from salaries of public sector workers for 36 months.
Trade unions have threatened with strikes, suggesting temporary cutbacks and stricter tax collection, while opposition parties and professional groups are calling for civil servants to carry their weight in the economic crisis by contributing equally into the state pension fund as all [private sector employees.
Parliament is due to convene late Friday afternoon to discuss the package.