Cyprus administrative court rules salary cuts for civil servants unconstitutional

In late March, the Cyprus Administrative Court ruled that salary and pension cuts imposed on civil servants between 2011 and 2012 were unconstitutional. These measures were originally enacted during the financial crisis to save state budget funds. Finance Minister Harris Georgiades estimated that potential compensations could reach 1.6 billion euros, a figure disputed by Glafkos Hadjipetrou, the general secretary of the PASYDY trade union. Because Cypriot law requires compensation for the period since the law's enactment rather than just moving forward, the ruling impacts a large number of state employees who filed complaints. President Nicos Anastasiades met with party leaders on April 8 to discuss the potential fiscal impact on the national budget. Officials are considering amending Article 23 of the Constitution and have tasked Attorney General Costas Clerides with reviewing the court decision. Party leaders have expressed a desire to avoid further tax burdens on citizens and entrepreneurs. A follow-up meeting involving the Attorney General is scheduled to resolve the impasse.