Cyprus University Concerned over Rising Govt Debt
The University of Cyprus said it is concerned about the rising tide of government debt that is jeopardising the economy's development prospects and shifting a disproportionally large burden onto future generations.
In an unanimous decision, the university's board said that it is concerned that the growing deficit in pension funds and social security puts the long-term viability of the system into doubt. Other sources of concern are the high level of unemployment and the growing influence of the international economic crisis on Cyprus' economy.
Academics called on the government to take decisive measures to prevent further decline and the possibility of Cyprus ending up in a similar position to Greece.
The university said it supports measures proposed by the state to cut its civil service payroll and reform the public service pensions system. State employees currently receive two pensions, one of which they do not contribute to at all and the other to which they contribute half the rate of a normal employee.
The common good is the top priority at this critical stage, said the university's board.