28/06/2015 16:51
Minister of Finance Harris Georgiades stated today that Cyprus is well protected expressing at the same time his concern "for Greece's gloomy outlook".
During a press conference the minister stated that the Greek programme should be based on reforms and not taxes, something that puts him in conflict with what the Greek government proposed last Monday.
Mr Georgiades said that "in the Eurogroup I expressed the opinion that the Greek programme should be oriented towards consolidation and reforms that would correct the imbalances and not towards taxes".
"I consider tax increases the worst form of austerity which burdens not the public but the citizens and the businesses. It is a measure against growth that intensifies recession.
Cyprus' position was also that there should be an extension to the Greek program. It would be catastrophic for a country to have no access to the markets and at the same time being without a programme. Such a development would lead to even more austerity".
In an effort to appease the reactions caused by yesterday's decision of all eurozone finance ministers including Cyprus for the non-extension of the Greek programme, Mr georgiades said:
"I clarify, however, that yesterday's Eurogroup did not even examine the possibility of extension of the programme. This was the goal of the lengthy negotiations of the past several months that unfortunately had no positive result".
"And most importantly, a decision for an extension requires approvals by national parliaments and governments. This was done last December, this was done also last February, always with Cyprus' support", he said.
"And this is my answer to those in Cyprus that question Cyprus' stance in relation to the extension of the Greek programme. But, I will reverse the question: do they agree with and support Greece further staying in a programme, or do they want its abolition? Or maybe their position changes every three days?
Cyprus was the only state-member that had a clear position in relation to the settlement of the Greek debt. I remind that Cyprus has already suffered a huge burden towards this direction. The decision of a haircut in the Greek debt in 2012 imposed a cost of €4,5 bn which was eventually paid by depositors through the deposits bail in. Another €330 mn were given as loans from Cyprus to Greece through the economic adjustment programme. And this is why we are ready to accept for this €330 mn, which is substantial for the size of our economy, whatever arrangement that would further ease the Greek debt.
Consequently Cyprus' support is not limited to announcements and statements to impress domestically, but it is of substance even though it comes at a cost.
Finally, the Cyprus government's strong position is that Greece must stay in the eurozone and in the core of the European Union. This is anyway the Greek government's stated position.
I wonder which is the position of AKEL for example on this issue. Do they want Greece to remain in the euro as the Greek government is trying? I have not heard.
And a comment about Cyprus:
The economy of Cyprus independently from the Greek developments, is following its own course of stabilization and recovery and is thus amply protected from any developments. In spite of this, the Eurogroup has decided that all measures that may be dimmed necessary will be taken in order to secure that there will be no contagion of instability and uncertainty to the rest of the eurozone.
So I do not worry about Cyprus, given that we will continue our own effort with seriousness and credibility and that we will never allow logic to be lost amid cheap populism, slogans and extreme choices" the minister concluded.
During a press conference the minister stated that the Greek programme should be based on reforms and not taxes, something that puts him in conflict with what the Greek government proposed last Monday.
Mr Georgiades said that "in the Eurogroup I expressed the opinion that the Greek programme should be oriented towards consolidation and reforms that would correct the imbalances and not towards taxes".
"I consider tax increases the worst form of austerity which burdens not the public but the citizens and the businesses. It is a measure against growth that intensifies recession.
Cyprus' position was also that there should be an extension to the Greek program. It would be catastrophic for a country to have no access to the markets and at the same time being without a programme. Such a development would lead to even more austerity".
In an effort to appease the reactions caused by yesterday's decision of all eurozone finance ministers including Cyprus for the non-extension of the Greek programme, Mr georgiades said:
"I clarify, however, that yesterday's Eurogroup did not even examine the possibility of extension of the programme. This was the goal of the lengthy negotiations of the past several months that unfortunately had no positive result".
"And most importantly, a decision for an extension requires approvals by national parliaments and governments. This was done last December, this was done also last February, always with Cyprus' support", he said.
"And this is my answer to those in Cyprus that question Cyprus' stance in relation to the extension of the Greek programme. But, I will reverse the question: do they agree with and support Greece further staying in a programme, or do they want its abolition? Or maybe their position changes every three days?
Cyprus was the only state-member that had a clear position in relation to the settlement of the Greek debt. I remind that Cyprus has already suffered a huge burden towards this direction. The decision of a haircut in the Greek debt in 2012 imposed a cost of €4,5 bn which was eventually paid by depositors through the deposits bail in. Another €330 mn were given as loans from Cyprus to Greece through the economic adjustment programme. And this is why we are ready to accept for this €330 mn, which is substantial for the size of our economy, whatever arrangement that would further ease the Greek debt.
Consequently Cyprus' support is not limited to announcements and statements to impress domestically, but it is of substance even though it comes at a cost.
Finally, the Cyprus government's strong position is that Greece must stay in the eurozone and in the core of the European Union. This is anyway the Greek government's stated position.
I wonder which is the position of AKEL for example on this issue. Do they want Greece to remain in the euro as the Greek government is trying? I have not heard.
And a comment about Cyprus:
The economy of Cyprus independently from the Greek developments, is following its own course of stabilization and recovery and is thus amply protected from any developments. In spite of this, the Eurogroup has decided that all measures that may be dimmed necessary will be taken in order to secure that there will be no contagion of instability and uncertainty to the rest of the eurozone.
So I do not worry about Cyprus, given that we will continue our own effort with seriousness and credibility and that we will never allow logic to be lost amid cheap populism, slogans and extreme choices" the minister concluded.
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