Greeks seeking work flock to jobless Cyprus

MAINLAND Greeks have been flocking to Cyprus in search of work as their country's economic crisis has worsened, but unemployment is soaring on the once booming island. The Greek embassy in Nicosia says there are 32,000 Greek citizens living in Cyprus and that 1,500 Greek businesses have relocated to the island in the last two years, according to a report in the Famagusta Gazette newspaper.
COMMENT: CYPRIOT government ministers have recently expressed concern over rising unemployment among young Cypriots and blamed an influx of workers from other EU member-states, in particualr Bulgaria and Romania, as being responsible.
Last week the government unveiled plans to contain unemployment and stimulate growth, especially in energy and tourism industries. For 2012, public and private sector development projects amounting to three billion euros are already underway, said  Minister of the Interior Neoclis Sylikiotis. A new service in the Planning Bureau will give priority to state projects according to their idrect impact on employment and growth, he added.
Construction in Cyprus has collapsed as new developments and home purchases dried up. The once thriving market for British holiday villas has also disappeared leaving leaving thousands of empty properties in tourist centers like Limassol, Paphos and Ayia Napa.
Last week all parties agreed to new economic austerity package to halt the island's slide towards an EU bailout – including a two-year freeze in civil service wages, a new tax on private-sector earnings, an increase in VAT and cuts in state spending.
Cyprus forecasts weak growth of 0.5 percent for this year and 0.2 percent for 2012. However, the European Commission and the IMF say the economy will shrink by 1 percent. Unemployment is currently at  8.2 percent, but a stark 22.7 percent of those under 25 are out of work.