The government and the main trade unions have agreed on a package of austerity measures aimed at fiscal consolidation.

Government Spokesman Stephanos Stephanou has sent a message to all parliamentary parties to be constructive during the voting in the House of Representatives on the package.

Speaking on Tuesday evening after President Demetris Christofias and the trade unions had agreed on the package, Stephanou said the agreement contained substantive structural changes for fiscal consolidation, including the gradual abolition of vocational retirement schemes in the public and the broader public sector, and the immediate inclusion of new staff in the Social Insurance Fund, so that “everyone has a single pension fund and receives a pension based on the same criteria.“

He added that the package includes measures that would give the state an immediate increase in revenue and reduce expenditure.

According to the agreement, public servants will contribute, for the next three years, 3% annually to the state coffers, and will reassess the situation in the future. There will also be a reduction of 10% in the salaries of newcomers in the public sector.

Stephanou furthermore noted that the Council of Ministers would be convening on Wednesday to finalise the package of measures and send the proposed legislation to the House of Representatives for approval.

He said the Minister of Finance would be analysing the cost of the package and its prospects at the House Committee on Finance, which meets today.

The Spokesman said the economy issue was very serious and that the package could address the immediate challenges and pave the way for major structural changes, in order to secure the robustness and vitality of the economy.

He added that the Government would continue the dialogue for additional measures concerning the situation caused by the deadly explosion at the Evangelos Florakis Naval Base, the shockwave of which destroyed the island`s main power plant.