Who knows how to save the Cypriot economy? I think the answer is: everyone, except for government/semi-government employees and the Government itself.
Let us start with the easy part, semi-government/government-owned organisations: they should all be privatised. This would initially bring a big pile of cash into the Government coffers, and reduce the long-term burden on the economy.
As for the Government itself, immediate actions to take include: the abolition of Cost of Living Allowance increases; the abolition of automatic pay scale increments; full contributions by government employees to the Social Insurance fund; full contributions by government employees to their professional pension fund; the increase of the government retirement age to 65; reductions in starting salary levels to make the sector less attractive as an employer, which will prevent the leak of talent from the private sector where it can be utilised productively; changing the working hours to suit those who require the services and not those who provide them; employing external consultants to evaluate the efficiency of every government employee and, based on the findings, promoting, demoting, or making redundant where appropriate; implementing a proper recruitment process.
The Government should also move all of its employees who do not interact with the public or businesses out of the city centres. This would make available their current premises - normally situated in expensive prime locations - and dramatically reduce traffic flow within towns, removing the need for costly urban road development.
Obviously this would lead to major strike action. After any strike of more than a week, dismiss them all and let them reapply for their jobs. The delays caused would not be a major problem, considering the length of time it currently takes government organs to take action anyway.
As for those made redundant in this process, many would already have other illegal sources of income (private lessons, businesses held in their spouse’s name, etc). As these jobs have no taxes or social insurance contributions paid on them, this would allow their legitimisation and produce further income for the Government. A hot-line should also be set-up to report those still in the Government’s employ who have an illegal second job/business, so that they can be investigated and, if the allegations are proven, dismissed.
http://www.cyprus-mail.com/letters/savi ... h/20110710