Friday, January 22, 2021

BUDGET FINALLY APPROVED, STATE GUARANTEES

Filenews 22 January 2021 - by Eleftheria Paizanou


The co-operation front with smaller parties (EDEC, Alliance, Solidarity, Democratic Forces Cooperation, ELAM), formed by the government to approve the revised 2021 state budget, wants to keep it a lifetime, so that other important pieces of legislation that are pending or will be put forward soon can pass through the House.

Following the state budget, which was passed yesterday, there are a number of state guarantees for loans to businesses and self-employed workers, which will help to boost the liquidity of companies affected by the coronavirus pandemic.

This was captured yesterday in his first statements immediately after the adoption of the budget by DISY President Averof Neophytou, who expressed the hope that the state guarantee bill, which would provide €1 billion in liquidity, would soon be adopted in the House. businesses, which are, he said, the backbone of the economy. The governing camp hopes that, just as the small parties have embarrassed the government by approving the state budget, so they will do in the next tests.

Of course, the opposition parties voted in favour of the budget because they were able to incorporate their proposals into the bill. The practice of meeting requests from opposition parties will be followed by the government in the period remaining until the end of the term of office of the Parliament. Already, the first step was taken by the Ministry of Finance, which sent the draft bill and decree on state guarantees to the parties, pending their recommendations. for the final configuration of the text.

The revised budget was supported by 29 Members from DISY, EDEC, Alliance, Solidarity, Democratic Forces Cooperation and ELAM. Twenty-six Members from ACPL, DIKO, Ecologists and Anna Theologos voted against him. It should be noted that despite the negative attitude of DIKO on the state budget and its exception to the consultations on the revised budget, the president of the ruling party yesterday tried to build new bridges with Nikolas Papadopoulos.

President: A new crisis has been averted

Yesterday, The President of the Republic Nikos Anastasiades, thanking the parties that supported the budget, said that their positive vote prevented a new crisis in the country. "I think their creative attitude - despite all our political differences - is a contribution to progress and is for them a sign of political maturity and patriotic behaviour," he noted. At the same time, President Anastasiades stressed that the adoption of the budget would solve the problems caused by the pandemic. "We can now support the health system, continue to upgrade our hospitals, support businesses and workers, stand by our vulnerable fellow citizens," he stressed.

For his part, Finance Minister Konstantinos Petridis welcomed the vote in favour of the state budget, pointing out that this avoids national risks. He also said that the budget is both coherent and balanced, stressing that broader political demands have been taken into account, not just from the parties that voted for the budget. Without the budget, he continued, "we would definitely be led on adventures."

Back to normality

However, after yesterday's adoption of the budget, the government's hands were untied. The state is now returning to normality and ready to deal with the effects of the coronavirus pandemic. At the same time, liquidity will enter the market, as the payment of bonuses and one-off sponsorship to hundreds of companies affected by the coronavirus pandemic will begin. A government source told "F" that payments would begin in the coming days and any other government plans, which had been frozen due to last December's vote against the budget and the state's operation by the January twelfth, would resume.

Crucified Recovery Fund

It is worth noting that the opposition parties did not give away to the government, singing some funds and crucify others. Of the 30 amendments tabled, six were adopted. These are amendments which the government has not incorporated into the revised budget. In particular, all opposition parties have cut off funds for the privatisation of public bodies and state-owned enterprises. They also crucified €2.2m in funding for the project. concerning the purchase of services by three specialised international companies, for the conduct of enhanced due diligence checks for applicants for cypriot citizenship, on the basis of the Cyprus Investment Programme. He pledged 50% of the €5m (£5m) budget. for the operation of an Investment Fund for the provision of capital financing and credits of €5.4 million, relating to the sponsorship to the Cyprus Hydrocarbon Company. A €100m (€100m) fund has been crossed. on funding for the European Commission's new one-off financial instrument related to the recovery mechanism, as well as appropriations for various routes.

The government, at the last minute, tabled amendments incorporating arrangements for the creation of dozens of posts in the National Guard, following yesterday's decision of the Council of Ministers and additional appropriations of €48,000 to the ''trapped''.