Praia, Cape Verde, 21 June – The government of Cape Verde said it would present Wednesday a five-year pact to employers and unions to boost economic growth and productivity on the archipelago.

The proposal from the government of José Maria das Neves, comes at a time when negotiations with unions on salary increases are reaching a peak with a threatened general strike due to the government’s refusal to go beyond a 3 percent salary raise.

“The government intends the agreement to be wide-ranging and cover the reforms underway in public administration, social security, health, public finance, education, justice, and work,” said a statement issued in Praia.

“The strategic agreement for 2006/20011” has as its, “fundamental objective the acceleration of the economy’s growth arte and competitiveness,” it said.

In the same statement, the government noted that, “under normal conditions, salary increases must be set based on expected inflation,” which for this year is 3 percent, and “if the rate is higher then it will be corrected in the following year.”

The Cape Verdean government expects economic growth of 6.5 percent in 2006, which is higher than the 5.5 percent growth expected by the archipelago’s central bank. (macauhub)