During this week Turkey and Turkish Republic of Northern Cyprus signed an economic development program that covers the period from 2013 to 2015. The program stresses that Turkey will continue to provide full support to the TRNC. The aid that Turkey plans to allocate under this agreement is three billion Turkish liras. But there was a change of priorities in the areas of use of aid allocated to Turkey. For example, last aid allocated by Turkey for the payment of salaries and pensions "hyped and pampered public sector." Thus, the Turkish Ambassador to TRNC voiced a clear position that Turkey does not want to play the role of a scapegoat for unsustainable public sector. Under the new provisions the aid provided by Turkey, will focus on the development of production and the private sector. The main purpose of care is not only to keep the ship afloat, but also improve the welfare and living standards of the Turkish Cypriots, as well as to increase employment. For the Government of the TRNC it means addressing some pretty tough decisions. These solutions will not be welcomed by trade unions as they include wage cuts, reduction of civil servants, and will meet strong resistance.
It is hoped that the government will be strong enough to take the necessary steps to reduce needless government spending. For a long time, the state worked on the principle of let things go on as usual , but if something goes wrong, there's always Turkey to help get out of this situation. Today, Turkey does not want to subsidize a lifestyle of representatives from the public sector. As with every country in the world, the Turkish Republic of Northern Cyprus should now regulate their expenses with their incomes.
Undoubtedly the investment made by Turkey, will have much influence on the economy of the TRNC, the increase in jobs and the rise of the private sector, which will reduce the cost of the state treasury and increase tax revenues. Thus, over the long term, the state will receive more money in their management. Be that as it may, these changes will not be felt for a short period of time, and all of the above described procedure will lead to a tightening of belts.
Of course the government will face the indignation of trade unions, but if all of these measures will be the same for all, the public will sooner or later take the side of the state. However, another question - is there enough courage to state what should be done.