Cyprus Financial Minister: If We Don't Have More Austerity An EU Bailout Is Certain

cyprus

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NICOSIA, Cyprus (AP) — Cyprus’ finance minister says it’s certain the eurozone country will need a bailout from its EU partners without tougher spending cuts and tax hikes now.Kikis Kazamias says his ministry is looking to freeze government workers’ salaries for two years and save a total euro355 million ($479 million), despite strong opposition from powerful trade unions.

He also wants to introduce a scaled surtax on private sector salaries above euro2,500 and an additional levy of 0.5 per cent on domestic company turnover.

These measures are on top of a euro840 million ($1.1 billion) austerity package included in the 2012 draft budget.

Kazamias said Friday the country needs to restore its credibility so that international markets can loan it money at lower interest rates.

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