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The painful measures proposed by Troika for Cypriot economy

A draft document describing in detail the proposed measures on a clear timeline for Cyprus economy was revealed yesterday by In Business News. Apparently this is the document that was given to the government back in July when the Troika experts left Cyprus. To no surprise the measures will be painful for everyone in Cyprus even those not directly affected by them.

Here are the proposed measures in an easier to understand format:

  • Full repeal of Cost of Living Allowance in the public sector.
  • Repeal of the 13th salary in the public sector and government officials.
  • Increase in VAT rate from 17% to 18%.
  • Wage freeze for public sector until at least end of 2015.
  • Temporary contribution by all public officials, general directors of Ministries, Members of the Parliament and officials of other public agencies.
  • Reduction of 13th month pension by 50% of pensioners receiving between 1000 and 1500 euro monthly and by 75% of those who earn more than 1500.
  • 6.8% contribution by pensionable income of government officials.
  • Reduction in the number of civil servants between 2013 and 2015 by an additional 250 employees per year.
  • Reduction in contributions to semi-government organisations.
  • Removal of heating allowances.

 

Opinion

In case these measures are implemented, do you believe they will help the economy in the long-run?

  • The measures will make the economy even worse in the future. (48%, 16 Votes)
  • Yes, things will get better. (39%, 13 Votes)
  • No, the situation will remain the same. (13%, 4 Votes)

Total Voters: 33

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