The President stated that from the beginning, in order to deal with the economic crisis, the Government followed the philosophy of supporting development and assuring that the social dialogue will continue as long as this government is in power.
Key points in President Christofias' answers:
- I'm sorry about Marie, but it's not my fault.
- It's not because of Marie that I will not reclaim.
- On the issue of Qatar investment, it is not our fault but they came and wanted to invest.
- The President (and not the ministers) is responsible for economic policy. We said that we will not take any measures.
- I do not rule out getting into a support mechanism. There are many types of support mechanism, and we will not have that of Greece.
- We fired George Vassilios, President, and I always have a quarrel with him on economic issues. George is a neoliberal and his theory of economics has failed.
- If we do not catch the target of 2.5%, the world is not lost, because a minister (Kazamias) went and promised the Europeans 2.5%.
- No casino licenses will be issued by this government.
- My experiences with my friend Thanasis (Orphanides) are traumatic, because he wanted to trample all the work conquests.
The speech
The policy to support development, the welfare state and the consolidation of the economy, and the rejection of harsh austerity was fully justified, said the President of the Republic, Dimitris Christofias, noting that from the beginning, to address the economic crisis, the Government followed the philosophy of supporting development and assuring that the social dialogue will continue as long as this government is in power.
Speaking at the press conference on internal governance, President Christofias stressed that his government was called upon to manage the deepest systemic crisis that capitalism has experienced and that its work should be evaluated in the light of this incomprehensible - as he said - fact.
The President of the Republic referred to the qualitative and quantitative achievements of the Government in various sectors, while he made a special and extensive reference to the economy and unemployment.
"While at home we were ridiculed and accused by some who constantly criticize every action and decision of the Government, because we operated with a different philosophy from the one that prevails in Europe, today the voices and views in the Union itself that its policies should be reviewed are intensifying. austerity which have been dogmatically and exclusively applied ". Policies, he said, that put the European economy in a vicious circle of recession, mass unemployment and poverty, and social backlash.
It is not a coincidence, said President Christofias, that in Cyprus we did not have social unrest, lasting strikes and protests. This, he added, is due to the balanced and, under the circumstances, mild measures we have taken. This is due, he said, to the fact that as a Government we show social sensitivity and respect the social dialogue and the social partners.
The President of the Republic reiterated that the big problem faced by
economy is the exposure of the Cypriot banks to the Greek economy and the need that has arisen for their recapitalization after the reduction of the Greek debt. The recapitalization, he added, is primarily a matter and responsibility of the banks themselves, which have great responsibilities because with their decisions they exposed the banks and consequently the Cypriot economy to excessive risk. The Central Bank continued to bear great responsibility for the situation, "which improperly exercised its supervisory role and left the banks exposed to this great risk they face."
Responsibilities, therefore, exist and should be attributed, he noted. "At this time, of course, the most important thing is to support the effort to recapitalize the banks, and the government is working in this direction in cooperation with the Central Bank." The issuance of a decree in support of Laiki Bank is a decision that is part of the recapitalization effort, he said.
On the other hand, he said, the government continues the program of consolidating the economy and solving long-term structural problems, with fiscal discipline but also social sensitivity, while supporting growth.
Regarding the state of the economy, President Christofias reiterated that the distortions of the economy are not the result of its policy, but of policies that have been pursued for decades.
Problems such as the large size of the state apparatus, operating costs but also mismanagement, bureaucracy and mentalities formed over the decades, privileges granted to groups of civil servants, low productivity, etc., he said, which with particular acuity highlighted the global financial crisis, trying to load on the Government.
The President of the Republic said that under the pretext of the wrongdoings in the public and wider public sector - and in the economy in general - forces at home tried to annul the acquis of the workers and change the map of labor relations. Attempts were made, he said, to blame civil servants for the problems of the economy, but an attempt was made to turn private sector workers against public servants. "An attempt was made to discredit the trade union movement as one of the sources of the problems facing the economy, with statements such as: 'It is Kyritsis and Moses who determine the economic policy of the government.'"
President Christofias said that with the fiscal measures taken we fulfilled the fiscal targets we set in 2010 and with which we had committed in the EU and closed that year with a budget deficit of 5.3% from a target of 6%, when opposition parties and politicians predicted 7 % and 8% deficit and constantly stated that Cyprus will join the support mechanism. They also predicted, he continued, that the growth rate would be negative and we achieved a positive growth rate of 1%.
In 2008-2010, the economic indicators, he continued, show that the measures taken by the Government, which the European Commission characterized as timely and targeted, bore fruit. He said that in that period Cyprus maintained the 3rd highest growth rate in the eurozone and the public debt had increased by only three points compared to a corresponding increase of twenty points in the eurozone.
For 2011, the President of the Republic said that three main reasons "not only did not allow us to meet our expectations, but seriously worsened the state of the economy." The first reason, he said, was the deterioration of the situation of the European economy and especially of the eurozone, second, the further deterioration of the crisis in Greece and third "the unfortunate event of the explosion in Marie that in addition to material damage caused the loss of human which I express once again my deep sorrow ". The destruction of the power plant in Vasiliko, he said, cost the economy about 1% of GDP but also great inconvenience to citizens.
The President of the Republic also reminded that on January 24, 2012 the Council of Finance Ministers (Ecofin) of the EU member states considered that Cyprus "took effective measures to correct the deficit within the time limits set (by the Council)".
The government, he said, followed the philosophy of supporting development, saying that this was the nature of the first two economic packages, amounting to almost 0.5 billion, announced in November 2008 and February 2009. At the same time, he said, we supported the welfare state and vulnerable groups of the population. One of the first decisions of the Government was to strengthen the low-middle pensioners by adopting the Easter allowance and the plan to support the households of low-income retirees.
The President of the Republic pointed out that for the first time in the history of the Republic of Cyprus the number of civil servants is decreasing and referring to the latest data of the statistical service, said that due to the measures taken, the number of civil servants in April this year last year it was reduced by 1169 people.
"We were accused by the opposition that we emptied the state coffers because, immediately, we were giving social benefits and wasting money. That has been said recently. First of all, I want to emphasize that the accusations of alleged waste are untrue. "The fact that we supported the welfare state is an honor for us."
The opposition, he said, accuses the government of being "unsympathetic and painless", citing a contradiction in its rhetoric that denies and refutes its claims. "It simply came to our notice then. And exactly nothing is valid. " The government, he said, shows practical social sensitivity and pursues a social policy that is within the capabilities of the state. A characteristic of rational and sensible social policy, he said, is that the targeting of social benefits was promoted and implemented, which was a request of all political forces "even if some after the implementation of this measure used it to accuse the Government of being unpopular ".
"Of the surpluses, which I mentioned in passing were cyclical, we found ourselves with deficits not due to the exercise of social policy," said President Christofias, but due to the dramatic decline in revenue due to the economic crisis, which led to diversification of fiscal data.
In addition, he said, growth support measures increased costs, saying that in 2009, when the eurozone was entering a recession, the EU had asked for growth support from government funds, regardless of fiscal indicators. He noted that at this time the vast majority of eurozone countries went from surpluses to deficits, due to the expansionary policy pursued in the economy.
"Even today, he said, from a fiscal point of view, Cyprus is in a much better position than many eurozone and EU countries." Today's fiscal indicators of our economy are better than those of 2003, when there was no crisis. Characteristically, I note that at that time the public debt of Cyprus was 70% and the budget deficit 6.6% ". He cannot, he continued, level everything and develop an uncontrollable danger that ultimately discredits the country's economy abroad and causes panic and bad psychology at home, which is the worst.
As for unemployment, he said, its drastic reversal can only occur with stable positive economic growth, something for which the Government is working in an organized and targeted manner. Based on the registered unemployment data of March 2012, he said, the number of unemployed reached 37440 people and 30% of the unemployed are non-Cypriots. Despite unemployment rates, Cyprus remains a popular job-seeking destination for EU countries, he noted.
To tackle unemployment, he said, they have developed programs and taken concrete steps in two main directions, helping to integrate the unemployed into employment and better controlling the market to combat undeclared work.
Utilizing resources from the state budget, the budget of the Human Resources Development Authority and community resources, we provided targeted incentives to companies to hire unemployed, he said, saying that from 2009 to the end of 2011 they were employed in more than 8500 unemployed a large percentage of them are young people up to 25 years old and people with a university education.
Regarding natural gas, President Christofias said that its discovery "is the most important positive event in the recent history of our country", which opens new horizons of development unfamiliar to our country in a number of areas, many of which go beyond the known recognized frameworks and the hitherto traditional model of development of our economy.
The discovery of gas, he said, is the result of carefully designed, well-methodized and structured efforts that began several years ago, with the delimitation of our Exclusive Economic Zone with our neighbors and culminated in the signing of the agreement with Noble Energy International and the decision on the exploratory drilling which resulted in a positive result.
"The policy implemented by the Government has proved to be very effective in addressing the Turkish provocations and reactions and has brought the international community together on the side of the Republic of Cyprus. In the same careful way, with the same targeted and serious policy, far from loud declarations and statements, we proceed with the Second Licensing Round ".
The Government, he noted, is at an advanced stage of formulating and defining a long-term strategic planning that will include all aspects and all areas of the energy chapter.
President Christofias said the government had taken on an extremely pressing water problem and solved it once and for all by completing the desalination program that had remained unfinished in previous years. In addition, with the single water body we overcame the problem of fragmentation of powers and responsibilities and set the conditions for the rational management of water. The government, he added, disbursed 67m euros in compensation to farmers from the drought and an additional 60m euros in water transfers from Greece.
He also noted that after an agreement with the social partners, the viability of the Fund has been ensured until 2048, characterizing as an important element the regular control of the progress of the Fund (every 3 years) for timely identification and correction of possible problems.
The Government, he continued, launched the solution of the problem of the public sector pension plan and launched its solution with the inclusion of all new entrants in the public service, in the Social Insurance Fund. He added that the policy of hiring temporary staff in exchange for vacancies has ended, with exceptions and on the other hand, temporary staff remain in the public service until retirement and are used in wider categories of staff depending on their needs and salary scale.
The President of the Republic said that the cost of agricultural debts that was settled, cost 35 million euros, created a modern and integrated system of public transport and promoted the educational reform that took place from the school year 2011-2012, with the gradual introduction of new curricula in pre-primary, primary and secondary schools, as well as the implementation of the new curriculum in primary schools.
He said that the commitments for increasing the expenditures for Education as a percentage of GDP to 8%, for reducing the maximum number of students per department to 25 students in all grades of primary and secondary education, for expanding the Educational Priority Zones and for implementation of the institution of the Responsible Department in all classes. The decision to establish a Medical School at the University of Cyprus has been taken and is being promoted and is expected to accept the first students in 2013, as well as the operation of Post-Secondary Vocational Education and Training Institutes in all Provinces, from the next academic year 2012-2013.
In Culture, he said, a multidimensional cultural policy is being implemented, through the development of new cultural institutions and infrastructures, referring to the construction of the new THOK Theater, the institutionalization of the New Talents development program, while it was decided to create a Museum and Literature Archive.
The Government, continued, promoted and implemented a series of targeted measures to support students facing serious socio-economic problems, amounting to 12 million euros, while it also spoke to the granting to all students of the Second High School for the purchase of a laptop.
For the refugees, President Christofias said that the funds related to the housing programs, but also to all other social assistance measures, more than doubled, saying that from the 72 million euros that the previous governments had on average each year for their refugee policy , the Government increase to 150 mln.
They granted property titles to the beneficiaries and a plot of land to refugees living on Turkish Cypriot property and unable to obtain a title deed, he said.
On the issue of missing persons, the President of the Republic rejected "with disgust the accusations leveled against the President of the Republic and the Government for the unfortunate turn of events regarding the identification program. "Because I know first hand and I live the pain of the relatives of the missing, I do not allow anyone to take advantage of these very delicate issues concerning the issue of the missing."
Referring to the housing policy, he said that the criteria for participation in the housing programs were improved and expanded, thus increasing the number of beneficiaries. "The Unified Housing Plan and the other housing programs, which are addressed to indigenous and displaced persons, now contribute substantially to the achievement of the desire of every Cypriot family to acquire their own home." These, he said, include providing plots to refugee and low-income families.
For health, President Christofias said that new clinics have been created (pediatric, transplant clinic) and the creation of others is being promoted. In addition, he said, agreements have been reached with leading doctors abroad to perform surgeries in Cyprus in order to reduce the cost of shipping abroad and the introduction of know-how in Cyprus.
At the same time, he said, for 2012, projects are planned for the creation of radiotherapy centers, the creation of a cardiac surgery clinic at the Limassol General Hospital, the expansion of the Larnaca General Hospital and the upgrading of dialysis services in all cities. The creation of the Medical School at the University of Cyprus is also promoted.
A study on the pricing policy for medicines is being prepared, he said, saying that in order to promote the implementation of the General Health Plan (GESY), contacts with all social partners have been completed and plans are being made to prepare public hospitals so that they can operate. most effectively in a GESY environment.
For Local Government, he said that the implementation of the plan for the reform of the institution of Local Government is at a very advanced stage, while for the Environment he spoke about the new urban and spatial planning policy which brings quality changes since transparent and participatory procedures are adopted.
The President of the Republic finally noted that the Ministers of the Government, in the next period of time, will take stock of the work of their ministries for a more representative and comprehensive picture.
Read the full speech of the President
We are already going through the 5th year of governing the place. The report of the work of our government can adequately give the overall picture. We are convinced that the report proves and documents that to date a rich and varied work has been produced in admittedly extremely difficult international conditions, which have been caused, sustained and reproduced by the unprecedented economic crisis that afflicts humanity and especially Europe.
Our Government has been called upon to manage the deepest systemic crisis that capitalism has experienced. Any evaluation of the work of the Government cannot be done without taking into account this incomprehensible fact.
However, even in these difficult circumstances, the work of the Government includes many achievements - both qualitatively and quantitatively - the most important of which I will present at today's conference. The time limits of the press conference are not enough to present everything that has been done. Nor is it my goal to go into the full range and depth of the work that has been produced or is in progress. I will limit myself to the most important. I note that the Ministers of the Government, in the next period of time, will proceed to the account of the work of their ministries and the picture will then be even more representative and complete.
As I have already mentioned, the global financial crisis has hit the Cypriot economy and caused a lot of difficulties and problems. The crisis has presented to our country, as well as to many other countries, very big problems, challenges, dilemmas, difficulties and pressing needs. These needs have been perpetuated by the fact that the global crisis has proved far greater in scope and duration than even the most pessimistic predicted. This ongoing crisis creates new needs and constantly forces action.
The crisis overturned the fiscal data of the countries, including ours, and highlighted structural problems and distortions of decades. It created a different situation from the one that existed before we took over the presidency, based on which our election program was formed. In various cases, due to the crisis situation, we have had to review goals or even redefine priorities. However, I would like to emphasize that the main body, the basic orientations and the goals of our program have remained unchanged and are being implemented with determination.
A fairer society
In our Program, we set as the central goal of our socio-economic policy, the creation of a fairer society within the present system. We did not aim to change the system, but to make progressive changes and cuts in society so that:
1. To strengthen the welfare state
2. Protect the rights of employees
3. To strengthen the country's economy by investing in development, so that it can serve the reasonable needs of the citizens.
4. To modernize the public and wider public sector in order to be able to better and more qualitatively serve the citizens.
5. To make modernizing cuts in society so that it can meet the challenges of the 21st century.
Despite the difficulties that we were called upon to face early on, the Government with great determination promoted many issues included in the Program, in addition to resolving chronic problems faced by the Cypriot society. Our Government:
• Took an extremely pressing water problem - it is no exaggeration to say that Cyprus in 2008 was on the brink of thirst - and solved it once and for all by completing the desalination program that had remained unfinished in previous years. In addition, with the single water body that we created, we overcame the problem of fragmentation of powers and responsibilities and set the conditions for the rational management of water.
• The four-year drought caused great problems and disasters to farmers. The government has disbursed 67m euros in compensation in addition to the 60m euros for transporting water from Greece.
• Received the problem of the viability of the Social Insurance Fund and solved it by reaching an agreement with the social partners. The viability of the Fund is ensured until 2048. An important element of the Agreement is the regular monitoring of the progress of the Fund (every 3 years) for timely identification and correction of possible problems. The recent actuarial study has shown that despite the pressure exerted by the Fund due to the financial data created by the crisis, it maintains its outlook.
• Received the problem of the public sector pension plan and launched its solution with the inclusion of all new entrants in the public service, in the Social Insurance Fund.
• Received the problem with the temporary civil servants and fixed it. On the one hand, the policy of hiring temporary staff in exchange for vacancies was terminated - with few exceptions. On the other hand, temporary employees remain in the public service indefinitely until retirement and are utilized in wider categories of staff depending on their needs and salary scale.
• Took over the problem with agricultural debts that has occupied the Cypriot society for decades and settled it. The total cost amounted to 35 million euros.
• Received a deficit of an adequate and modern public transport system and created a modern and integrated system.
• We have strengthened and modernized the road network of Cyprus by spending hundreds of millions of euros.
Implementing the governance program and despite the difficulties of the financial crisis, we have promoted a lot. Indicatively I mention some:
1. In the field of Education, the Government resolutely promoted the educational reform which from theory became a practice. From the school year 2011-2012, the democratic and human school began to take shape, with the gradual introduction of the new curricula - which is the heart of the reform - in pre-primary, primary and secondary schools, as well as the implementation of the new timetable in primary schools. Commitments were implemented to increase spending on Education as a percentage of GDP to 8%, to reduce the maximum number of students per department to 25 students in all grades of primary and secondary education, to expand the Priority Zones and to implement the institution of the Head of Department in all classes. The decision to establish a Medical School at the University of Cyprus was taken and is being promoted and is expected to accept the first students in 2013. A decision was also taken to establish and operate Post-Secondary Institutes of Vocational Education and Training in all Provinces, from the next academic year 2012-2013 . Furthermore, three Private Universities were granted final operating licenses, while the registration of a new Private University in Larnaca in the relevant Register was approved.
2. In the field of culture: A multidimensional cultural policy is implemented, through the development of new cultural institutions and infrastructures. Within this framework, the construction of the new THOK Theater has been completed and the procedures for the creation of the Unified Culture Authority are in the process of completion. The Young Talents Development Program was instituted and it was decided to create a Museum and Literature Archive. The Foundation for Cultural Creation for Children and Youth in Larnaca started its operation while the planning for the creation of the Cultural Village in Lempa is being implemented.
3. In the field of student and student care, the measure of granting sponsorship to all students of the 12nd Gymnasium for the purchase of a laptop computer was adopted. At the same time, the Government promoted and implemented a series of targeted measures to support students facing serious socio-economic problems, amounting to XNUMX million euros.
4. In labor relations: We have strengthened the constitutionally guaranteed right of the organization and the possibility of negotiating and concluding collective agreements.
5. For the refugees: Recognizing that the refugees have suffered the greatest losses from the Turkish invasion and occupation, our Government has adopted various measures and innovative arrangements to improve, upgrade and enrich the refugee policy, aiming at the effective and effective support for the refugee world. Within the framework of this policy, we have more than doubled the funds related to the housing programs, but also to all the other social assistance measures addressed to our refugees. It should be noted that from the € 72 million that the previous Governments had on average each year to cover the various refugee policy programs, we increased this amount to € 150 million per year. We have increased the down payment and the sponsorships granted for the self-housing of the displaced. We have expanded the assistance provided for the repair and / or maintenance of homes. We granted title deeds to the beneficiaries. We are giving a plot of land to refugees who live in Turkish Cypriot property and cannot obtain a title deed. We gave solutions to those who can not get a title and in a way that no refugee is wronged.
I must add here that together with the refugees, we constantly share special interest and care for our trapped people.
6. On the issue of the missing: The Government and I personally have continued to provide material and moral support to those who have taken on the important task of implementing the Missing Persons Investigation Program. We shamelessly reject the accusations leveled against the President of the Republic and the Government for the unfortunate turn of events regarding the identification program. Because I know firsthand and I experience the pain of the relatives of the missing, I do not allow anyone to take advantage of these very delicate issues concerning the issue of the missing.
7. On housing policy: Despite economic pressures, the Government has developed and implemented an integrated housing policy. As part of this policy, the benefits and sponsorships provided to eligible citizens have increased significantly. At the same time, the criteria for participation in housing programs were improved and expanded, thus increasing the number of beneficiaries. The Unified Housing Plan and the other housing programs, which are addressed to indigenous and displaced persons, now contribute substantially to the achievement of the desire of every Cypriot family to acquire their own home. These housing schemes include the provision of land to refugee and low-income families, which the government has also strengthened. More than seventeen thousand families, mainly young couples, have been satisfied with the Government's housing policy until today.
8. In the field of health: For the implementation of the goals we set for the provision of quality upgraded public health care, new clinics were created (pediatric, transplant clinic) and the creation of others is promoted. In addition, the Government has concluded Agreements with leading doctors abroad to perform operations in Cyprus with the aim of reducing the cost of shipping abroad and the introduction of know-how in Cyprus.
At the same time, for 2012, projects are planned for the creation of radiotherapy centers, the creation of a cardiac surgery clinic at the Limassol General Hospital, the expansion of the Larnaca General Hospital and the upgrading of dialysis services in all cities. The creation of the Medical School at the University of Cyprus is also promoted.
A study on the pricing policy for medicines is being prepared.
In order to promote the implementation of the General Health Plan (GESY), contacts with all social partners were completed. Plans are being made to prepare public hospitals so that they can operate more effectively in a GESY environment.
9. For the Local Government: The implementation of the plan for the reform of the institution of the Local Self-Government is at a very advanced stage. The main goal of the reorganization is the Local Government to provide services that meet the modern needs of the citizens, to have reduced maintenance and operation costs and to upgrade the participation of the local community and the citizen.
10. For the Environment: We have implemented an integrated environmental policy. Components of this policy are the new urban and spatial planning policy which brings about qualitative changes since transparent and participatory procedures are adopted. It is also the promotion of a system of modern and rational management of solid, livestock and municipal waste, the promotion of renewable energy sources, the complete ban on the cultivation of Genetically Modified Organisms in our country, etc.
11. Energy sector: The discovery of natural gas creates prospects for great and long-term economic growth in Cyprus, which will benefit both current and future generations. It would not be an exaggeration to say that the discovery of natural gas is the most important positive event in the recent history of our country. The discovery of natural gas opens new horizons of development unprecedented for our country in a number of sectors, many of which go beyond the known recognized contexts and the hitherto traditional model of development of our economy.
The discovery of natural gas is the result of carefully designed, well-processed and structured efforts. These started several years ago, with the demarcation of our Exclusive Economic Zone with our neighbors and culminated in the signing of the agreement with Noble Energy International and the decision for the exploratory drilling which ended in a positive result. The policy implemented by the Government proved to be very effective in addressing the Turkish provocations and reactions and brought the international community together on the side of the Republic of Cyprus. In the same careful way, the same targeted and serious policy, far from loud declarations and statements, we proceed with the Second Licensing Round. The submission of specific proposals by large companies and large countries, finds us completely satisfied. In addition to the policy implemented in the gas chapter, the Government is at an advanced stage of formulating and defining a long-term strategic planning that will include all aspects and all areas of the energy chapter.
Dealing with the financial crisis
Naturally, tackling the economic crisis has become our Government's top priority.
From the beginning, we adopted the approach that the response to the crisis should be done in a balanced way, as much as the conditions allowed and as much as possible, without unilateral and unilateral measures. We did not follow the model, widely applied in Europe and elsewhere, of harsh austerity and the overthrow of the welfare state. The measures were taken following a social dialogue in line with the tradition developed in Cyprus, which has greatly contributed to the existence of social and labor peace.
SotiraNews.com/DAILY