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COLA hits competitiveness

08/06/2011 15:02
The Commission’s proposals for Cyprus yesterday show EU’s discontent for the government’s failure to take fiscal consolidation measures, DISY Vice President, Averof Neophtou said.

“It is obvious that our EU peers are not satisfied by the course of the measures for the consolidation of our economy”, he said in his written note.

According to Mr. Neophytou, it is very easy to see from the comments that the EU is not satisfied by the non-taking of measures for the restraining of the state expenditure, the restricted progress on the National Health System and pension system.

“Brussels said that there is still no single banking supervisor and the existing COLA system hits competitiveness and those who are benefited from the system are those with higher incomes”, Mr. Neophytou said.

Finally, he referred to the EU recommendations, which focus on the restriction of the state expenditure, the improvement of the long-term viability of the public finances with the arrangements of issues that have to do with the expenditure stemming from the ageing population, such as the expenditure and the health spending, the review of COLA, the strengthening of the supervisory framework of the banking sector as well as the strengthening of competition and the improvement of the labour market conditions.