New Minister of Finance Kikis Kazamias has begun a round of contacts to discuss the first package of fiscal consolidation measures, which has been agreed on with the political parties and has been enriched.

The purpose of the meetings is to achieve the broadest possible consensus and secure a unanimous vote of relevant laws at the end of the week, so that a positive message for the recovery of the economy is sent abroad.

Kazamias told CNA today that the top priority of the first package of measures was to defuse the time bomb of the pension scheme.

He said that he began contacts on Monday and would continue through Tuesday till Wednesday with meetings with the social partners, the trade unions and the parliamentary parties, which he was briefing on the intention of the Government to pass the first package of measures from the Council of Ministers on Wednesday afternoon and from the House of Representatives on Thursday or Friday.

Replying to questions, Kazamias said he was optimistic that all sides would adopt the measures so that “we all send the optimistic message for fiscal consolidation and the recovery of the economy.“

He said that it was “urgent to conclude the dialogue on the first package, take a breather and then prepare for a second package, which will be relevant to submitting the budget for next year.“

Last week, EU Commissioner for economic and monetary affairs, Olli Rehn, said the economy of Cyprus has overall sound fundamentals, pointing out that Cyprus needs to make urgent reforms, in particular with regard to the pensions and health-care systems.

Cyprus has overall sound fundamentals. While the Cypriot banking sector is large in size relative to the economy, Cypriot banks are well-capitalised and supervised, he said, according to the European Voice.

Ratings agencies Fitch`s, Standard & Poor`s and Moody`s have all downgraded the island`s credit rating this year. Moody`s lowered its growth forecast for the island to zero for this year and 1% next year.