Cyprus Mail www.cyprus-mail.com
Tuesday, October 23, 2012
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Troika package is finally on its way Government ‘now ready’ to put together 2013 budget for House By George Psyllides
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HE government yesterday completed its proposals to international lenders - the troika who will now be invited to Cyprus for negotiations with a view to coming to an agreement on a bailout package by November 12. “In a short while, we will send the troika the complete proposals of the government and invite it to Cyprus to negotiate the support package to the Republic,” government spokesman Stefanos Stefanou told reporters last night. The announcement was made after President Demetris Christofias met union leaders in the last of a series of meetings the government held with unions, parties, employers and the Central Bank governor. Stefanou said that the government had worked intensively so that Cyprus can achieve a support package that safeguards workers’ rights, protects vulnerable groups and gives economic prospects, Stefanou said. The government proposals do not include scrapping the 13th salary or CoLA, the wage indexation system, which will be reformed. The government proposes staggered cuts in the public payroll ranging from 6.5 per cent to 12.5 per cent and there is no mention of selling profitable semi-state companies. The proposals are in response to recommendations made by the troika on July 25.
The troika has proposed salary cuts in a public service workforce which is one of the highest paid in the eurozone, pension reform, privatisations and the creation of a “bad bank” which will assume problem debt in the financial system. “The package will have a cost,” Stefanou warned. “But our effort all this time was to draft a package of measures that would make it bearable, so that we will be able, with everyone’s contribution, to overcome the difficulties we face at this time.” Cyprus must meet a November 12 deadline or face the possibility of running out of cash. After November 12, the next meeting of the Eurogroup, it will take the parliaments of individual eurozone nations about six weeks to sanction the Cyprus memorandum. The spokesman said there was enough time to negotiate and strike a deal before the deadline. “We want to negotiate with honesty and determination to achieve the best possible result; close a deal with the troika as soon as possible,” Stefanou said. Finance Minister Vassos Shiarly said the government was now ready to put together the 2013 budget and submit it to parliament soon. The minister said the budget will include the measures prepared by the government and if necessary amend it accordingly depending on the negotiations with the troika.
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‘SICKENED’ UCI STRIPS ARMSTRONG OF TOUR DE FRANCE WINS By Julien Pretot LANCE Armstrong was stripped of his seven Tour de France titles and banned for life yesterday after the International Cycling Union (UCI) ratified the United States AntiDoping Agency’s (USADA) sanctions against the American. The long-awaited decision has left cycling facing its “greatest crisis” according to UCI president Pat McQuaid and has destroyed Armstrong’s last hope of clearing his name. “Lance Armstrong has no place in cycling. Lance Armstrong deserves to be forgotten in cycling,” McQuaid told a news conference as he outlined how cycling, long battered by doping problems for decades, would have to start all over again. “The UCI wishes to begin that journey on that path forward today by confirming that it will not appeal to the Court of Arbitration for Sport and that it will recognise the sanction that USADA has imposed. “I was sickened by what I read in the USADA report.” On October 10, USADA published a report into Armstrong which alleged the now-retired rider had been involved in the “most sophisticated, professionalised and successful doping programme that sport has ever seen”. Armstrong, 41, had previously elected not to contest USADA charges, prompting USADA to propose his punishment pending confirmation from cycling’s world governing body. Former Armstrong team mates at his US Postal and Discovery Channel outfits, where he won his seven successive Tour titles from 1999 to 2005,
Not so magnificent seven: Lance Armstrong’s wins have been erased from the Tour de France record books in a case that has shocked millions around the world
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