WHAT IS POVERTY TODAY?

1. WHAT IS POVERTY TODAY? Poverty today remains a complex issue involving many interrelated parameters. Parameters that should be seen in a holistic approach and identify effective mechanisms to overcome challenges. May be the question that we have to answer today should not be what is poverty today(because it did not change from our previous analysis or definition) but how much poverty we have today on European and National Level and in which of the existing forms is appearing and increasing.

2. The consequences of the biggest economic crisis of the last years are too heavy on the shoulders of the people, especially on the workers and the vulnerable groups and these consequences do not seem to end soon. • More unemployed people, more austerity measures, less social benefits, more people without food and house e.tc. • People who are forced to live in poverty and social exclusion is dramatically increasing despite the declarations of Europe 2020.

3. So the question today is: are the policies and measures we have in front of us giving any hope of overcoming the stalemate that the crisis has driven us or they are making the situation worse? • Is the human being a core issue on the agenda of the European Union and the International Monitory Fund or the core issue is to “save” the economy and the banks at any cost?

4. Poverty and exclusion do not only affect the welfare of people and its ability to play a role in society but also prevent the economic development. • So fighting poverty is a corporate responsibility for all those who are participating at the decision making bodies of the public and private sector. • Core mission all of us is not only raising the poverty issue but it is our duty to demand solutions and fight for them. • It seems that declarations are not enough and does not give the expected results.

5. POVERTY TODAY IN MY COUNTRY • Few months ago when we met at the EUIG meeting I was listening to our friends from Troika countries declaring their uncertainty of the future of their countries after the measures they were forced to implement in order to ‘save’ the economy of their countries and I was feeling lucky that our government not only was not cutting salaries and benefits but on the contrary gave allowance to the pensioners and increased the amount of the single parents who were getting allowance etc.

6. Today I cannot say that I feel lucky and certain of what is going to happen in my country. • Cyprus is becoming on of the Troika Countries. The government asked the support of the Troika even though they didn’t wish to do it because they know very well that the austerity measures they will impose will be against social benefits and the working people. • Why Cyprus face this terrible situation and was obliged to apply to the support mechanisms? Because Cyprus banks invested enormous amount at the greek Bonds and at the greek economy and they could not get sufficient financing and borrowing from the markets. As a result the government had to find finances to support the banks to address their realities.

7. Standard of life in Cyprus is very high and we try to keep it high. • It is not easy to accept the new data especially when we know that we are not responsible for the financial crisis. The organizations are fighting against the austerity measures but I must confess that some circles found their chance to support the austerity measures.

8. That’s the situation and now we are about to accept or to negotiate the austerity measures. • It is very important to underline the will of the Cyprus Government not to accept measures that are against working people, for example abolish cost of living allowance and the 13th salary. Government is against to charge health and education services which today are free for the majority of the citizens. It is also against to stop or reduce allowances and it tries to find other solutions of getting finances e.x. taxes on the wealth and combat tax evasion.

9. SOME FIGURES • Two years ago unemployment was 4.5% today is almost 12%. European citizens who are coming to Cyprus to find job are almost 1/5 of Cyprus Population. • Till now the percentage of people experiencing poverty was about 15% (relative poverty not absolute poverty). • The biggest problem is unemployment. Many families are driven to poverty, especially those families that both parents lost their jobs and cannot get any allowance from the social funds or they expanded the period of the unemployment allowance. • We have phenomena of families which cannot pay their loans and families that are obliged to stop their children from their studies because they cannot afford to pay the university. They cannot afford to pay the electricity bill…

10. Due to this situation phenomena of racism and xenophobia are increasing. Local people are complaining about the allowances given to some categories of immigrants. • The working poor are complaining for the absence of adequate minimum income. • People is asking for job, any job, leaving a side the demand of quality job. • People is asking for development projects, new jobs and more social potection.

11. Discussing with a Greek friend about the situation in Greece and how things are developing in Cyprus, waiting for the austerity measures that Troika is about to impose he said to me: it will be difficult for you because “to be poor and become poorer it is not so big deal but having a very high standard of living and become suddenly poor/unemployed it is a big difference”. • That’s how some people who know the reality in Cyprus describe in one sentence our own concern and worries.

12. So the big challenge for the Cyprus people today is to fight for the protection of their rights and benefits which have been succeeded after many years of struggles. • The danger of loosing them is very close. • We believe that the solution is not austerity policy and cuts but development that offers new jobs. • Countries that need financial support must be given to them but not demanding from them to strangle their people in order to pay of the loans in very a short period. • Long term policy of paying off the loans must be demanded. Cuts from social benefits and cuts from the wages of the working people is not solving the problem but it is creating much more by increasing unemployment and poor people.

13. THANK YOU VERY MUCH • MARINA KOUKOU • EAPN CYPRUS