REFORMS. Mounting tension between government and private sector. After the virulent press conference held by the Joint Economic Council (JEC) last Thursday, tension is still high between the private sector and the government. After the JEC voiced out its frustration that the government is not implementing the measures contained in the budget last year, the prime minister made a biting reply. After saying that the private sector should not provoke the government, he more recently added, ?I will meet them only if they realise they have made a mistake. A big ?if?.? He also said that the JEC did not represent the whole private sector and that all members do not think the same. As for the JEC, it only wants to re-establish the dialogue with the government to go on working.

NATIONAL PAY COUNCIL. Unions and employers clash ? Trade unions and employers are confronting once again. The second meeting of the National Pay Council (NPC) was the opportunity for both to state their proposals. While unions are asking for a 11% for all those earning up to Rs 8,000 and 4.8% wage compensation for those earning more than Rs 15,000, employers clearly state that many sectors are facing tough times and may not be able to pay any compensation. Priority should be given to job preservation. Employees of the sugar and EPZ sectors should not expect any compensation while those of the tourist sector could obtain a certain amount ? depending on the individual companies.

CLIMATE. Tidal waves surprised everyone.Tidal waves in the South and the West of the country have led to one death and three people missing during the weekend. Three fishermen had also been reported missing until the bodies of two of them were found on Wednesday. People living on the coasts are now quite worried about the future, as the meteorological station had not been able to warn the population soon enough during the weekend. They were all surprised by the huge waves and could not take any precautions. The Prime Minister?s Office was annoyed by this lack of rapid reaction.