Cyprus News Agency: News in English, 07-01-24

Cyprus News Agency: News in English Directory - Previous Article - Next Article

From: The Cyprus News Agency at <http://www.cyna.org.cy>

CONTENTS

[01] UN SG - CYPRUS

[02] ALMUNIA - CYPRUS ECONOMY

[01] UN SG - CYPRUS

Speaking at a press conference in Brussels, after a meeting with President of the European Commission Jose Manuel Barroso, the UN SG also regretted the rejection of his predecessors plan for Cyprus and noted the importance of implementing what was agreed.

I will ensure to encourage them as well to ensure the implementation of this agreement which had been agreed between the two leaders, it is very important to implement what has been agreed, he said.

Cypriot President Tassos Papadopoulos and Turkish Cypriot leader Talat agreed on July 8th 2006, during a meeting in Nicosia in the presence of UN Undersecretary General for political affairs Ibrahim Gambari, to begin a process of bicommunal discussions on issues that affect the day to day life of the people and concurrently those that concern substantive issues, both contributing to a comprehensive settlement to the Cyprus problem.

Cyprus has been divided since 1974, when Turkey invaded and occupied its northern third.

[02] ALMUNIA - CYPRUS ECONOMY

Commissioner for Economic and Monetary Affairs Joaquin Almunia announced on Tuesday the adoption of Cyprus` convergence programme, noting that Cyprus is purifying its public finances at a good rate and is expected to reduce its national debt below 60% of GDP (Gross Domestic Product), but needs to make a better effort in reforming the pension and medical care system.

Asked about Cyprus` aim to join the Economic and Monetary Union on 1 January 2008, Almunia said Cyprus must submit the official application to enter the Eurozone by the end of March 2007, which will allow the Commission by May to draft a report with its proposal to the Council, which will have to issue a decision by June.

The Commission points out that the collective government deficit and the gross debt are projected to drop to 0.1% and 46.1% of GDP respectively by 2010, from 1.9% and 64.7% respectively in 2006.

It also notes that in general fiscal policies are aligned with the demands of the stability and development pact. The gross debt of the collective government is expected to come close to 60% of GDP by 2007 and continue to drop over the next years. However, the public cost from the aging of the population is expected to be so great that Cyprus is facing a high risk regarding the long-term sustainability of public finances.

For this reason, the Commission calls on the Council of Ministers to recommend to Cyprus the examination of expenditure regarding public pensions, and implement further reforms in the pension and medical care sectors, in order to improve the long-term sustainability of their public finances.

Cyprus News Agency: News in English Directory - Previous Article - Next Article