Cyprus President Seeks Union Backing On Austerity
NICOSIA, Cyprus (AP) â¿¿ Cyprus' president appealed to trade unions on Friday to rally behind tough austerity measures that the government wants to negotiate with potential creditors in return for a multibillion euro bailout loan to prop up the country's ailing banks and economy.
Dimitris Christofias met with trade union leaders, who have reacted angrily to the proposed public sector salary cuts and tax hikes they say are unfairly being foisted on workers and would deepen the recession rather than spurring growth.
Cyprus asked the European Commission, the European Central Bank and the International Monetary Fund for aid in June to support a banking sector reeling from its large exposure to debt-crushed Greece. The so-called 'troika' wants the government to slash spending by roughly â¿¬1 billion ($1.29 billion) before signing off on a bailout deal.Christofias is asking trade union leaders to "act patriotically" and bite the bullet on the measures to stave off possible social unrest. He's also meeting opposition leaders to get their support, but many have criticized the measures as being inadequate. "Everyone agrees that we must all strive for a common line, trade unions and political parties, so that the government can negotiate with the troika from a stronger position," government spokesman Stefanos Stefanou said, adding that Christofias will hold another meeting with union leaders. Stefanou said that the government and political parties are on the same wavelength regarding their opposition to some troika recommendations such as privatizing profitable state-owned companies and scrapping end-of-year bonuses and inflation-based pay rises. Earlier this week, EU Commission President Jose Manuel Barroso urged Cypriot leaders to agree to a deal and speed up bailout negotiations. The government is aiming to wrap up talks with party and union leaders in the next couple of weeks in the hope of sealing a bailout deal before the Nov. 12 meeting of euro finance ministers. That could see Cyprus receive the first batch of bailout money in December, when state coffers start to run dry.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts