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Lack of coordination in economic policy, DISY says

20/05/2004 14:56
Right-wing party DISY criticized government on Thursday for a lack of coordination in its economic and fiscal policy. Speaking after a Press Conference, DISY MP Maria Kyriakou and Deputy Finance Commissioner, Iosif Iosif expressed their concern on the government’s intention to impose measures that provide for a 3% VAT increase.

Mrs. Kyriakou said that the imposition of taxation and the imposition of VAT on properties will affect economy, stressing that other countries seek for the development of their economy with the drop in taxation. Mrs. Kyriakou suggested that the government should deal with the increase in productivity in the civil service and promote Cyprus and the Cyprus product abroad.

Similarly, Mr. Iosif said that the government lacks political and economic vision and referred to the conflicting statements of the Cyprus President, Tassos Papadopoulos and the Finance Minister, Makis Keravnos on the increase in VAT from 15% to 18%.

“The government must face reality”, Mr. Iosif said and wondered whether the government’s unwillingness to apply for an ERM 2 and EMU entry is attributable to its reservations on whether its forecasts will be contradicted once again.

Mr. Iosif congratulated the new Finance Minister and expressed his satisfaction on the introduction of the European Issues Service by President Papadopoulos.