Cyprus make cost cutting after the explosion

NICOSIA, Cyprus (AP) - heads of Government and the opposition of the Cyprus agreed Friday, price reductions to the economy of the Mediterranean island under siege in a deadly explosion that triggered a crisis of energy of the buoy.Stefanos Stefanou Government spokesman did not disclose the details of the package but said that it is the first of several to address budgetary and structural Island problems. "The message is clear, that the Government and the parties are not simply locked in discussion, but that they agree on the measures relating to both the consolidation of the economy as well as covering the immediate economy financial needs,"Stefanou told journalists after the President Dimitris Christofias met with leaders of all parties."The announcement comes after the Cyprus top banker warned earlier this week that the July 11 blast killed 13, which struck the main station of power offline can force the Member of the European Union to seek a bailout plan if difficult austerity measures are not taken quickly.Cyprus had already considered a raft of reducing expenditure and tax following a series of downgrades rating of Cyprus of large banks credit measures included made-out Greece.Those cutting 5,000 jobs in the Government over the next five years, reduced overtime pay 20% in 2012, to reduce the starting in the public sector salaries and a crackdown on tax evasion. Another revenue idea was to introduce a tariff on newly registered companies.But these plans have equalised by the detonation of some 98 gunpowder filled containers confiscated in a ship Iranian and stacked on an adjacent naval base in the Central. Even before the explosion, the Central Bank Governor Athanasios Orphanides criticized measures that will not not far enough.Now, the country had experienced cuts power wheelchair in the heat of the summer; the plant had provided at the request of the half island.Economist Stelios Platis argues that the impact of the explosion and damage ensuing could shave up to a certain percentage point off the coast of island for 2011 of 1.5 per cent growth forecasts. In monetary terms, which is between €180 and 350 million euros ($256 and $ 497 million), which could add an additional 1 to 2 percent budget deficit of Cyprus. It now stands at 5.3%.These figures not even take into account the cost of repair of power - station that could reach hundreds of millions.Cyprus Chamber of Commerce official Marios Tsiakkis said some small businesses unable to cope with a turnover reduced may be forced to shut down if a power supply without interruption is not restored quickly. Some business leaders have warned that unemployment now at 7.4% could also spike.Officials of the electricity Authority said that it may take several months before the Vasilikos station is fully operational again. The lack of power is composed of generators shipped in Greece and Israel and to supply the Turkish half of the island.The Cypriot President in difficulty should revamp his cabinet soon in a bid to save the credibility of his Government in widespread public anger on what is regarded as official negligence causing the disaster.Defence of Christofias and foreign ministers have resigned over the explosion and some are calling the Communist President rooted to smoking so.