Filenews 8 January 2021 - by Andreas Pibisis
"The state must not collapse" was President Anastasiades' appeal to the political leadership at today's extraordinary session in an effort to secure the necessary majority in order to approve the state budget in the next period.
The President of the Republic addressing the political leadership said the state should not be allowed to collapse amid a pandemic. In his speech, President Anastasiades referred to the measures to be taken on the basis of the suggestions presented by parties in meetings he had with them. It is noted that President Anastasiades saw all parties except DIKO.
According to our information, the changes to the budget to be tabled by the Minister of Finance will be as follows:
- Programmes to support the economy (workers and businesses) – an increase of €90 million
- Minimum wage – information from the Ministry of Foreign Affairs Work
- Heavy occupations and pension – information from the Ministry of Foreign Affairs Work
- Minimum pension for low-income pensioners
- Housing policy – new plan for 134 communities (mountainous) for increased support for home acquisition
- Plan to revitalise mountain areas (in 2018 sponsorship doubled). Now there will be a further increase
- Mountain areas – heating allowance (repealed, new mountain area resident allowance reinstated in 2018)
- Arbitrary properties - exemption from the building factor. Compensation will be paid (credits included in the 2021 budget)
- Health sector support – the budget of the Ministry of Health amounts to 10% of the budget. Additional projects €78.5 million – programmes and investments (hematology clinic, support of Makarios hospital, establishment of a communicable diseases unit in Limassol)
- Support for children/infants/workers with care centres
- Renewable energy and a national recovery plan. New EU funds for the installation of photovoltaics in dwellings through the recovery fund.
As far as the banking sector is concerned, the decisions are as follows:
- non-referral of the suspension of divestments until March
- Abusive Bank Clauses – accelerated in the Court of Justice
- Vulnerable/ESTIA – out of the 3600 applications submitted the 480 are 'unsustainable' and a support programme is being launched
A bogeyman for the government is the upcoming assessment by Moody's, which is expected to take place on January 22nd. The government side has reportedly attempted to transfer to the political leadership the risk of a deterioration of the Cypriot economy if the revised state budget is not passed.
