Cyprus-Forum.com

[Gasman]

http://www.cyprusweekly.com.cy/main/100,1,352,0,9270-.aspx

NICOSIA - Cyprus must rein in public spending and re-direct it to development projects to help lift its economy out of its worst recession in three decades, central bank Governor Athanasios Orphanides said.
Orphanides, who is also a member of the Governing Council of the European Central Bank, said problems in the economy needed to be tackled comprehensively, and with backing from across the island's political and economic spectrum.
"Cutting back on non-productive public spending is necessary, because only then can resources be freed up and directed to economic growth and curbing unemployment," said Orphanides, who was an introductory speaker at a book presentation in Nicosia.
The island, which accounts for about 0.2 percent of the euro zone economy, had a budget gap of 6.1 percent in 2009, which is expected to rise to 7.1 percent this year.
"History is not kind to those lacking in courage," Orphanides said.