South Cyprus Finance Minister Haris Georgiades said yesterday that the Republic of Cyprus had avoided economic collapse but a survey sounded the alarm that Greek Cypriots would see living standards fall for another three years.

In his 2014 budget speech Georgiades said tough austerity was the only way South Cyprus could win back its credibility after the debacle of the bailout drama and banking crisis.

He said every Euro had to be accounted for after the reckless spending of the previous administration which saw the public debt widen by €7.5 billion in four years.

“If the public pay roll had not reached the biggest in Europe, comparatively, then we would not be in this difficult position,” said the minister.

And South Cyprus’ bailed out economy is not expected to see the grass roots of recovery until 2017 a much bleaker outlook than predicted by the Troika, said a report by auditors EY yesterday.

Source: http://incyprus.philenews.com