By Stelios Orphanides
The public sector remains the Achilles’s heel of the Cypriot economy as it continues to drain resources from households and firms even after completing most reforms agreed in exchange to bailout funds, an economist, member of the parliament said.
“This is the major problem of the economy,” said DISY lawmaker Marios Mavrides, who teaches economics at the Nicosia-based European University of Cyprus. “The public sector is the Achilles heel of the economy. The public sector absorbs more than half of the budget and produces very little value, not to mention that many times it curtails economic growth”.
Mavrides, who went into politics after gaining a seat in the parliament in 2011, named as an example the money paid by the government on pensions and lump-sums to public sector employees, “who never contributed anything for those benefits,” accounting for 3.4 per cent of the gross domestic product.