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Cyprus government action is having a positive impact with the EU

Other measures include raising VAT to 17% from 15% in March, freezing public sector salaries and benefits and levying a tax registered companies. The measures are aimed at bringing the deficit below the EU threshold of 3% down from a previously projected 6%.

The Cyprus Air Traffic Controllers’ Union, PASEEK, has announced to Work to Rule strikes which are to take place before the end of January. PASEEK is protesting its members inclusion in the austerity measures which the Cyprus government has devised to control the deficit.

Specifically they object to their overtime being reduced arguing that their income derives not from state coffers but from fees paid by airlines for use of state airspace. However, the government insists that, as state employees, they must not be exempt from austerity measures which are affecting all public sector workers.

The government action is having a positive impact with the EU recently approving the island’s programme.

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