THE government is expected today to submit a batch of bills for urgent approval by parliament, as it scrambles to meet the terms of a bailout agreement and score points ahead of a Eurogroup meeting next week that will discuss the Cypriot programme.
The 23 bills concern public service salary cuts, new taxes and provisions that will strengthen current laws on money laundering.
Reports said the bills providing for a rise in the tax on tobacco, alcohol and fuel could be brought before plenum for approval today.
The same goes for the one regarding pay cuts, which the government pledged would come into effect this year.
Finance Minister Vassos Shiarly said last week that the government would submit the bills this week with the aim of having them approved before December 13, when the Eurogroup is scheduled to discuss the island’s bailout.
The government hopes that approval of the bills will help Cyprus’ bid.
But it does not appear it will be smooth sailing, judging by the comments made by German Finance Minister Wolfgang Schaeuble on Tuesday.
"We expect complete financial transparency from Cyprus relating to money laundering issues, which fulfil EU standards and international requirements. We also expect quick implementation of all requirements that international organisations make. On top of that we need extensive cooperation on tax questions,” the German official said.
While having to defend the island at an EU level, the government must also defend its economic policy on the home front.
Government spokesman Stefanos Stefanou yesterday repeated President Demetris Christofias’ call for unity as he sought to deflect criticism over Wednesday’s televised presidential address.
“The government negotiated very hard, knowing the difficulties from the moment we were forced to resort to the (support) mechanism,” Stefanou said. “And certainly we negotiated to make various provisions in the memorandum tolerable. And we have achieved many things on various levels.”
In his address, Christofias once more blamed the banks and former Central Bank governor Athanasios Orphanides for seeking a bailout.
Main opposition DISY said Christofias’ address was a “monument of avoidance of any responsibility” for the tragic condition of the Cypriot economy.
DIKO said it expected the president to recognise his mistakes, assume his responsibilities and seek unity to tackle the difficult challenges ahead.
“Unfortunately, what we once again saw is a president for whom everyone else is to blame and never himself of his government,” DIKO said.
The government’s excessive borrowing in the past five years had nothing to do with Cyprus’ bankruptcy, it said.
“The banks and the opposition are to blame for everything.”
In response to the criticism, ruling AKEL said the critics were the same people who had put pressure on Christofias to accept the bailout without negotiation.
AKEL official Fanis Christodoulou suggested that Cyprus would have been forced to seek a bailout even if its deficit and public debt were zero.