Cyprus president seeks trade unions’ support for austerity

PanARMENIAN.Net - Cyprus' president is appealing to trade union leaders to rally behind tough austerity measures that the government wants to negotiate with potential creditors in return for a multi-billion euro bailout loan to prop up the country's ailing banks and economy, AP reports.

Dimitris Christofias is meeting Friday with trade union leaders, who have reacted angrily to the proposed public sector salary cuts and tax hikes they say are unfairly being foisted on salaried workers and would deepen the recession rather than spurring growth.

Cyprus asked the European Commission, the European Central Bank and the International Monetary Fund for aid in June. The so-called 'troika' wants the government to slash spending by roughly €1 billion ($1.29 billion) before signing off on a bailout deal.