GWU calls for price stability agreements, tax cuts

The General Workers’ Union this morning called for new price stability agreements and a tax cut as a means to control inflation and boost the economy.

The union in a statement reiterated its concern over galloping prices, noting that in a year food price inflation had doubled and had now reached 9.7 percent, the second highest in the EU.

Such upward pressure on prices was denting the people’s living standards, particularly in the case of those with a low income and pensioners, the union said. The situation was set to get worse with the imminent increase in the power surcharge, and the removal of the government subsidy on bread.

The union said the government should seek new price stability agreements so that prices would not continue to rise. There was also need for other measures, such as tax cuts, to boost the economy and improve the people’s purchasing power.

Price stability agreements were introduced by the government ahead of euro adoption. They expired at the end of March.