The Cyprus government’s wafer thin parliamentary win May 1 to ratify the island’s bailout terms show the country is far from united on how to proceed in its battle to stay afloat.
With a majority of just two votes, lawmakers approved terms accompanying a EUR10bn aid package from the European Union and the International Monetary Fund (IMF). The vote came amid warnings tougher times lie ahead for Cypriots, already suffering from the effects of a deep recession.
In the lead up to the vote, President Nicos Anastasiades said: "Any attempt to gloss over the tough measures imposed upon us [by the troika / EU, European Central Bank, IMF] would be an indication of weakness in comprehending the real problems society now faces, and a lack of vision and decisiveness from the state in restarting the economy."
Anastasiades has made no secret he expects the shipping industry, and the gas industry, to be the key players in the country’s economic revival. Likewise, the maritime community of Nicosia and Limassol appear to have accepted this and have expressed confidence it will be able to deliver. The gas sector is less certain as regional politics and jealousies come into play
Underlining his belief in shipping, Anastasiades is set to re-inforce the profile of the industry through the creation of as new ministerial post, undersecretary for shipping and thus deliver on a campaign promise. The move has been a longstanding goal of the shipping community based on the island and signals a strengthening of bonds between the industry and the government in the wake of the crisis.
Anastasiades has pledged measures to reinforce the sector and to intensify efforts to end the long-running Turkish embargo against Cyprus-flag ships, the third-largest EU fleet after Greece and Malta.
A bill paving the way for the new undersecretary job was submitted to the island’s parliament in the new government’s first week, but was delayed as the Cyprus debt crisis exploded in March. Now the new law is getting priority treatment, according to the government.
“We are ready and willing to proceed very speedily with the relevant parliamentary process in order for the Bill to be approved within the next coming weeks,” said Anastasiades.
The move will mean tinkering with the country’s constitution, which stipulates a precise number of government department heads. Hence, shipping has always been under the Communication and Works minister, with day-to-day administration of the registry the domain of the Department of Merchant Shipping, which has been without a permanent head since Serghios Serghiou retired almost 12 months ago.
Despite this, and the country’s problems, Cyprus Shipping Chamber (CSC) president, Eugen Adami, says Cyprus shipping will maintain "its steady course" and navigate through the present stormy waters.
However, speaking at the CSC’s annual general meeting in Limassol, April 29, he left no doubt the voyage faces challenges.
Adami said creation of an “under-secretary for shipping” would provide the necessary impetus for shipping, so as to be in a position to "practically contribute in the recovery of the Cyprus economy through the faster and more accurate development of government policy for shipping”.
But Adami said “the strict austerity measures imposed on Cyprus and the temporary banking restrictions have affected to a certain extent the smooth operation of the shipping companies based in Cyprus."
"It is however now most imperative that all restrictions are lifted as soon as possible," he said. Indeed, he said a Cyprus exit from the Eurozone or an organised bankruptcy are viable options.
He said the chamber’s aim is to retain the shipping industry’s 7% contribution to the Cypriot economy.
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