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EDEK favours consolidation and increased benefits

06/12/2004 08:54
Socialist party EDEK favours the strengthening of the social state and the taking of additional measures of fiscal consolidation. On his interview to StockWatch, EDEK MP, Marinos Sizopoulos reiterated EDEK’s proposal for the introduction of income criteria, which would increase the benefits for the lower classes.

Mr. Sizopoulos said that Cyprus will join the EMU in 2008 so long as it submits its application for an ERM2 entry in 2005.

“The problems of the island’s economy, which are attributable to the tax reform, the drop in tourist arrivals and the increase in the energy cost, deteriorated after the referendum, but the government can deal with these problems with the proper structural measures”, the MP said.

As regards to the investment loans, Mr. Sizopoulos said that his party might request the extension of the criteria to cover a larger number of investors. “The party will take the relevant decision as soon as it reviews the proposed plan”, he noted, stressing the need to offset the profits and losses for the period 1999-2001 so that investors are not urged to pay the income tax for revenues that never received.

On the question whether the Cyprus’ course in the EMU will be affected by a possible veto on Turkey’s accession negotiations, Mr. Sizopoulos said that the two matters are not related since the first concerns economic parameters and the second Turkey’s obligations.