The reform of the Public Service is stagnant - New postponement in the Parliament

The Republic is in danger of proving inconsistent in the first "crash test" for the implementation of prerequisites of the Recovery Fund, as the first reef emerged yesterday for its non-compliance with the commitments it made to the Commission.

The adventure for the reform of the Public Service did not end yesterday either, as the meeting of the leaders and representatives of the parties in the Parliament decided to accept the request for postponement, in order to give MPs time to study περιε in detail the content of the relevant bills. Except, however, these had been filed since 2019 and have been discussed a few times. The fact that they have been partially amended recently, in order to incorporate changes agreed between YPOIK and PASYDY, does not justify the new postponement, as the changes were adequately and competently explained.

While yesterday's plenary session was expected to approve the bills for the reform of the Public Service, to strengthen the legal framework for dealing with non-performing loans and to establish an Independent Anti-Corruption Authority, the discussion of all was postponed to January 2022, although the country pledged that they would be approved by the end of the year.

The specific legislation is included in the 14 milestones, five of which would pass through Parliament (prerequisites) by December 31st, for Cyprus to disburse in February the second tranche of € 85 million from the Recovery Fund. The decision to postpone was taken at yesterday's meeting of party leaders, as some parties asked to be given time to review the bills.

In the case of the bills for the reform of the Public Service, the postponement was requested by DIPA, which asked for time to study in depth the revised bills submitted a week ago by the Ministry of Finance. Despite the information that the other parties would disagree with the postponement, it was judged that, based on the rules of the Parliament and the practice followed, a party can ask not to discuss an issue and its request is accepted.

This is the second time that the bills that strengthen the legal framework for the management of non-performing loans and concern credit repayment companies and credit managers have been postponed. Yesterday's postponement was made after a suggestion of DIKO, which asks for additional safeguards to be included in order to avoid the abuse of the new law by the credit acquisition companies and the managers when they will have access to the borrowers' data through the "Artemis" database. And in the Land Registry. He also asked for more time to study the amendment of the Ecologists, of ELAM and DIPA, which seeks to prohibit the access of credit facility management companies to the "ARTEMIS" database, as well as to the database of the Land Registry, for purposes obtaining data of guarantors. As "F" is informed, consultations will follow to lift DIKO's reservations.

In relation to the bill for the Independent Authority Against Corruption, the postponement was decided as, as it was said at the meeting of party leaders, the text should be approved together with the bill for lobbyists and informants.

Yesterday's postponement of the bills related to the Recovery Plan did not satisfy the government at all, but it, although it considers that the right political messages are not sent to the European Commission, did not put much pressure on the Parliament to avoid the risk of getting involved. with the final approval of the bills.

A government source told "F" that the country's non-compliance with the very first milestones does not give the best picture in Europe. As he said, Democracy is not making a good start and is in danger of being exposed. He noted that the postponement is unjustified, as the bills have been discussed in Parliament for a long time.

As informed by "F", Cyprus is not in danger of losing the second tranche, as it will be granted, meaning that it will implement the 14 milestones by February. We were told that perhaps the technocrats in Brussels are conveying their dissatisfaction during the interim report that will be promoted by the Cypriot authorities in January, in relation to the implementation of the prerequisites. It is worth noting that the final report, the evidence (publication of laws in the Official Gazette of the Republic) and certificates from the ministries for compliance should be submitted by the Ministry of Finance in early February. Until then, the postponed bills are expected to be approved, as they are expected to be put to a vote on January 13th.

Meanwhile, yesterday, despite the postponement of the discussion of the bills, the Parliament approved two bills, which concern the aggressive tax and are included in the commitments for the Recovery Fund. The specific bills, according to the latest list given to the parties by the Ministry of Finance, will have to be implemented by the end of 2022, for the country to receive the 3rd installment, amounting to € 115 million, meaning of course that the remaining 30 milestones.

New regulation for corporate debts

A new breath was given to the companies that were affected by the coronavirus pandemic, which was submitted yesterday in the Plenary Session of the Parliament. The bill stipulates that in case of a tax return submitted, according to the regulations, for the specified tax period ending March 31, April 30 and May 31, 2021, no additional tax and charge will be imposed, provided that the taxable person submits the tax return for this period within the set deadline and pays the amount of VAT due by August 10, September 10 and October 10, 2021, respectively, and its economic activity does not fall under specific codes of economic activities (Financial Classification System NACE activities of the European Union).

The bill falls within the scope of the program budget support to address the effects of the coronavirus on the economy and will help boost business liquidity. A total of 37 economic activities are excluded from the government proposal.

philenews.com