14.9 C
Friday, April 19, 2024

The consequences of a new budget vote

Must read

The consequences of a new budget vote

Speaking to Insider, the director general of the Ministry of Finance, George Pantelis, analyzed the consequences of a possible new vote against the state budget by the House of Representatives.

According to Mr. Pantelis, the first consequence is that the € 200 million and € 130 million employee and business support plans announced by the Ministries of Finance and Labor will not be activated, which will put households in an even more unfavorable position. and businesses and will result in rising unemployment.

In addition, new contracts will not be awarded, nor will new projects worth hundreds of millions of euros be launched, including highways, sewers, and other development projects.

George Pantelis added that in case of an increase in unemployment, the time of payment of the unemployment benefit and other benefits paid by the state will also increase.

He described the downturn in the Cypriot economy as a given by Moody's on January 22nd, as for foreign companies a vote of no-confidence means political instability which will inevitably be taken into account in the evaluation.

He also explained that without a budget, the state will not be able to turn to the markets for new lending and that the confidence of foreign investors in the country will be shaken.

Finally, he clarified that in case of a new vote, twelve volumes will apply for the month of February, with the total expenses as in January reaching € 603 million.

Source: www.philenews.com

- Advertisement -AliExpress WW

More articles

- Advertisement -AliExpress WW

Latest article