State to appeal Court decision on salary cuts

Appeals will be filed as soon as possible concerning three decisions of the Administrative Court, said in an announcement the Office of the Attorney General. 

The first refers to the verdict that deemed as unconstitutional the legislation that reduced public sector salaries during the Cyprus sovereign debt crisis in 2012-2013. The second topic addresses the suspension of incremental salary hikes and inflation allowances and the third issue involves the 3% increase in contribution to the government’s pension fund.

The legislation was passed in December 2012 on the grounds that the Cypriot economy was in a extraordinary situation and the cuts were seen as nesseccary to rectify state finances. Speaking yesterday President Anastasiades said that the law of necessity should be taken into account.

The Republic will also ask for the suspension the verdict during the appeal process.

The strategy of the Republic was set up during a meeting held at the Law Office of the Republic, which was attended by the Attorney General, Legal Service Officers, the Auditor of the Republic, officials from the Ministry of Finance, the Director of Administration and Personnel Department.

The actions will be implemented as soon as possible it was announced. The office of the Attorney General will seek to make certain that the hearings take place at a plenary session of the Supreme Court due to the seriousness of the issue and the potential negative consequences to state finances.