THE austerity enforced by international lenders in other countries has not resolved any problems, ruling AKEL leader Andros Kyprianou said yesterday, reiterating that what is necessary for the Cypriot economy to recover is growth.
“On the contrary, it has led many countries into protracted recession,” Kyprianou said. “There are problems in all the countries where austerity measures only were implemented,” he added, referring to Greece, Ireland, Portugal, Spain and Hungary.
Cyprus sought financial assistance from its EU partners and the IMF – the troika -- in June. The amount of the bailout has not yet been set but it is certain that it will be accompanied with painful austerity measures.
Kyprianou said political parties in Cyprus must convince that what was primarily necessary was growth “to achieve recovery of the Cypriot economy and curb unemployment.”
Officials have said that they have been in touch with the lenders throughout August, but the perceived delay in their return to the island was yesterday attributed to a lack of response from Nicosia.
Finance Minister Vassos Shiarly has said that the troika had given Cyprus a document, at the end of July, which he said could be part of the "building blocks" towards a memorandum of understanding.
Daily Phileleftheros reported yesterday, without naming its sources, that the troika was unhappy over the delay in Cyprus submitting its counter-proposals.
The newspaper said this was linked to Nicosia’s request for a €5.0 billion loan from Russia, a view voiced repeatedly by the opposition.
Moscow has not yet responded.
AKEL chief Kyprianou said the troika had submitted ideas – not proposals – which will be discussed and the Cypriot side will table its arguments.
“It’s very early for anyone to take a stance in my view, concerning what they will do when the troika submits any proposals,” Kyprianou said.
Meanwhile, main opposition leader and presidential hopeful Nicos Anastasiades reiterated his call for a common action plan “that will bind everyone so that we secure its implementation without worrying about political cost.”
Anastasiades said the big challenge for Cyprus was not just securing a loan.
“To tackle the crisis we need a comprehensive programme of reform that would lead to growth, consolidation of public finances and the creation of jobs.”
Anastasiades’ call came after a bitter spat with AKEL and the government that saw the two sides holding news conferences and issuing statements two to three or more times in one day.