Finance Minister: Fiscal stability must be preserved

Fiscal stability must be preserved while social welfare measures are being implemented, said Finance Minister Haris Georgiadis today.

Speaking on CyBC’s radio 3 Georgiades referred to the decisions taken yesterday by Labour Minister Zeta Aimilianidou, DISY President Averof Neophytou and DIKO President Nikolas Papadopoulos. The government plans a 100 million euro social support spending to be implemented by the end of the year.

Mr. Georgiadis said that both party leaders are in agreement for the need to maintain a prudent fiscal approach when implementing social policy.

He added, that ''it is well known that there are budgetary surpluses that allow us to adopt welfare support measures.’’ These measures are going to be implemented not only because the two parties are asking for it, said Georgiades but also ''because the government views it as a retribution to citizens for their sacrifices during the economic crisis.’’

In terms of implementation the Finance Minister said that some of the measures need to be legislated first such as taxation issues.

At the same time, he reiterated that this "does not mean that we agree on everything.’’

''For example, in the matter of taxation the suggestion of the government was different from my own position. I consider the tax relief on interest of deposits to be more appropriate in order to encourage savings. But the final say, and this is something that we fully recognize and we move within the constitutional framework, the final say belongs to the Parliament. It has been agreed that the budgetary impact will be the same, but Parties prefer to make a reduction in fuel taxation."