13/12/2011 06:26
Cypriot political parties are in disarray ahead of critical votes in parliament for the 2012 budget and for the fiscal consolidation bills.
In anticipation of important votes in the parliament’s plenary session tomorrow and on Thursday, opposition parties unfold their negotiating tactics and are looking for allies to bring about changes to the governmental bills and the budget.
Much of partisan energy is directed on the targeting of the social benefits.
The two biggest parties of the opposition disagree with the tiered cut of the children and students benefit to households with income of €30-€90 thousand and recommend a horizontal cut for all non-targeted benefits, including the housing subsidies.
Parties are also reported to have second thoughts for the VAT hike, requesting complementary measures to offset its effects on low income families.
The climate of consensus among the party leaders has turned into bitter partisan disputes, raising concerns to Brussels, which eagerly awaits the passage of the fiscal consolidation measures.
Deliberations in the parties are ongoing and there are no clear positions yet.
The parliamentary group of DISY under its President Nicos Anastasiades and that of DIKO under its President Marios Garoyian had yesterday their first meeting during which all options with regard to the approval of the budget and the new measures were put on the table.
Both parties set a number of requirements in order to approve the budget and the fiscal consolidation measures.
“Nothing has been determined yet. The parliamentary group will consult today prior to the plenary session once again”, DISY parliamentary representative, Haris Georgiades told StockWatch.
The preliminary decision of DISY is to “vote against the budget since the government failed to proceed with its drastic revision as requested by the President of the party, Nicos Anastasiades during the meeting with the President of the Republic and the meeting of the party leaders”.
DISY also rejects the government’s proposal for targeting the social benefits because solely targets children and student benefits only.
“We propose a horizontal cut of 10% from all benefits, excluding certain vulnerable groups such as the disabled and the blind”.
“DISY will submit its own proposal for a horizontal cut of the social benefits, which will be in line with the government’s target for a saving of €200 million”, he said.
With regard to the measure on the VAT hike from 15% to 17%, DISY insists on its original position and relates the approval of the relevant bill to the permanent restructuring of COLA. Party sources talk about a postponement of the implementation of the VAT hike to April.
Things in DIKO are equally fluid. It seems that the party will set its own conditions for the approval of the budget.
The party is expected to propose extra spending cuts of 5-10% or savings in real numbers of €65 - €100 million, focusing on operational expenses.
DIKO seems to now be in favour of the targeting of social benefits, abandoning the measure on horizontal cut.
However, the party does not intend to give a positive vote on the bill for the VAT increase from 15% to 17% without measures to protect low income families – a position supported by unions, as well.
AKEL is unequivocal in its support for the budget and the governmental bills.
Indeed, its general secretary, Andros Kyprianou warned yesterday that a possible rejection of the budget by the opposition parties will be catastrophic for the economy.
On a communicative level, AKEL will send its own messages during the discussion and approval of the budget bill.
Mr. Kyprianou stated on Monday that his party will ask for a further spending cut of €15 million from two sectors.
EDEK and EVROKO will decide on their stance today.
It is expected that intense deliberations will take place in the Parliament today, so that the parties secure the necessary alliances for amendments. The party leaders have decided today that they will begin the discussion of the budget later in the afternoon, and leave the fiscal consolidation bills for tomorrow.
In anticipation of important votes in the parliament’s plenary session tomorrow and on Thursday, opposition parties unfold their negotiating tactics and are looking for allies to bring about changes to the governmental bills and the budget.
Much of partisan energy is directed on the targeting of the social benefits.
The two biggest parties of the opposition disagree with the tiered cut of the children and students benefit to households with income of €30-€90 thousand and recommend a horizontal cut for all non-targeted benefits, including the housing subsidies.
Parties are also reported to have second thoughts for the VAT hike, requesting complementary measures to offset its effects on low income families.
The climate of consensus among the party leaders has turned into bitter partisan disputes, raising concerns to Brussels, which eagerly awaits the passage of the fiscal consolidation measures.
Deliberations in the parties are ongoing and there are no clear positions yet.
The parliamentary group of DISY under its President Nicos Anastasiades and that of DIKO under its President Marios Garoyian had yesterday their first meeting during which all options with regard to the approval of the budget and the new measures were put on the table.
Both parties set a number of requirements in order to approve the budget and the fiscal consolidation measures.
“Nothing has been determined yet. The parliamentary group will consult today prior to the plenary session once again”, DISY parliamentary representative, Haris Georgiades told StockWatch.
The preliminary decision of DISY is to “vote against the budget since the government failed to proceed with its drastic revision as requested by the President of the party, Nicos Anastasiades during the meeting with the President of the Republic and the meeting of the party leaders”.
DISY also rejects the government’s proposal for targeting the social benefits because solely targets children and student benefits only.
“We propose a horizontal cut of 10% from all benefits, excluding certain vulnerable groups such as the disabled and the blind”.
“DISY will submit its own proposal for a horizontal cut of the social benefits, which will be in line with the government’s target for a saving of €200 million”, he said.
With regard to the measure on the VAT hike from 15% to 17%, DISY insists on its original position and relates the approval of the relevant bill to the permanent restructuring of COLA. Party sources talk about a postponement of the implementation of the VAT hike to April.
Things in DIKO are equally fluid. It seems that the party will set its own conditions for the approval of the budget.
The party is expected to propose extra spending cuts of 5-10% or savings in real numbers of €65 - €100 million, focusing on operational expenses.
DIKO seems to now be in favour of the targeting of social benefits, abandoning the measure on horizontal cut.
However, the party does not intend to give a positive vote on the bill for the VAT increase from 15% to 17% without measures to protect low income families – a position supported by unions, as well.
AKEL is unequivocal in its support for the budget and the governmental bills.
Indeed, its general secretary, Andros Kyprianou warned yesterday that a possible rejection of the budget by the opposition parties will be catastrophic for the economy.
On a communicative level, AKEL will send its own messages during the discussion and approval of the budget bill.
Mr. Kyprianou stated on Monday that his party will ask for a further spending cut of €15 million from two sectors.
EDEK and EVROKO will decide on their stance today.
It is expected that intense deliberations will take place in the Parliament today, so that the parties secure the necessary alliances for amendments. The party leaders have decided today that they will begin the discussion of the budget later in the afternoon, and leave the fiscal consolidation bills for tomorrow.
Related Articles
