THE government is pushing for a freeze in the state payroll for two years as part of additional austerity measures that also include taxing high incomes in the private sector and a small levy on companies with domestic activities, it was announced yesterday.
The measures aim at restoring Cyprus’ access to the international markets for its financing needs, lost after successive downgrades by all ratings agencies.
“Otherwise, Cyprus joining the EU support mechanism should be considered a given,” Finance Minister Kikis Kazamias said.
Kazamias said the state payroll freeze would save the state around €355 million in 2012 and 2013.
The freeze includes pay scale rises and cost of living allowance payments.Read More