The government has abandoned hopes of signing the economic protocol with Turkey and has begun searching for other alternative funding to pay salaries.
The council of ministers held an extraordinary meeting on Friday to discuss the problems regarding the budget. According to information obtained by Turkish Cypriot daily ‘Diyalog’, the council discussed the issue of discontinuing cost of living payments as of July. Moreover, it decided to introduce an increase of 50 kuruş to the cost of fuel. Additional taxes on some other products were also discussed.
Meanwhile, Turkish Cypriot daily Kibris reports that after the cabinet meeting, Foreign Minister Kudret Ozersay, told the paper that they were looking for a way out and that this would not be easy. He said that their efforts were focused on being able to function and that if they could not do this, they would do “whatever is necessary”. They did have some room for manoeuvre, he added.
Furthermore, columnist Basaran Duzgun in Turkish Cypriot daily ‘Havadis’ reports that the crisis on the signing of the protocol arose because the Turkish officials and the TRNC government disagree on the issue of privatisation. Duzgun notes that Turkey wants to privatise collection of the revenues for the electricity and telecommunication department and thinks that this issue is a “sine qua non”.
The Assembly has voted for an additional budget for 2019.
Diyalog, Kibris, Havadis