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AKEL to propose measures for the saving of £300-400mln

18/05/2004 15:10
AKEL MP, Stavros Evagorou revealed to StockWatch on Tuesday that the left wing party AKEL is expected to submit certain proposals on the Cyprus fiscals.

The proposals will be announced in a month and their adoption will add to the state fund £300 to £400 million. Mr. Evagorou avoided proceeding to further details, however proposals will concern cost-saving, moratorium on employment, transfer of the retirement limit to the 63rd year and development of the civil service that would allow the increase in productivity.

AKEL is currently reviewing its proposals and as soon as it proceeds to their announcement it will have talks with the government. It is noted that the deadline for the submission of the Convergence Program expires in late May”, Mr. Evagorou noted.

AKEL MP avoided revealing whether the proposals will be announced prior to the Euro-elections, but stressed that the measures for fiscal consolidation must be “timeless”.

Mr. Evagorou said that the early regulation of the city planning licenses and the tax amnesty would have added “at least £250 million” to the state funds, but admitted that their regulation at the current stage would not yield this sum.

Against privatizations

Mr. Evagorou clarified that AKEL’s proposals do not provide for privatizations, since his party “will not accept the sale of stakes of CYTA or EAC or the Ports Authority”. AKEL might accept, however, the funding of development projects with the BOT method “so long as the agreement is to the benefit of the Republic”.

Strategic alliances of the semi-governmental organizations are acceptable within the framework of the introduction of joint subsidiaries of the semi governmental organizations with the strategic investors.

Mr. Evagorou stated that the present government is not responsible for the fiscal deficit and criticized former government for the employment of 3 thousand extraordinary employees in the civil service.