The EU chairmanship rotates among its 27 members, in alphabetical order. The turn of Cyprus, population about 800,000, is next, starting Sunday. The EU total population is about 495 million, so leading the pack for six months automatically constitutes a major challenge for a small nation, regardless of its financial situation.
On top of everything else, however, Cyprus is basically broke, in need of $12.5 billion for its banks and public obligations, with $2.3 billion required by the end of the month. Its situation of penury is a direct result of the close links of its banks and finances in general to Greece, itself in dire straits.
It gets worse, from the point of view of the EU. Cyprus under its present government, led by the only Communist president in the EU, Demetris Christofias, would rather do its borrowing from Russia, instead of from the rescuers of the other messed up eurozone countries, Greece, Ireland, Portugal and Spain, who are being kept afloat by the European Commission, the European Central Bank and the International Monetary Fund. Russia loaned Cyprus $3.1 billion last year and does not impose the same sort of sharp austerity terms on its debtors as the international institutions do.
Thus, Cyprus, which shouldn't have been in the EU in the first place without having been required to sort out its differences with the Turkish northern part of its island, and nearby Turkey itself, is rapidly approaching becoming another European deadbeat state.
At the same time, the European Commission, the European Central Bank and the IMF will have the privilege of competing with China and Russia, which are seeking to expand their economic interests on and around the island, in offering terms to the Greek Cypriots to bail them out of their costly, self-inflicted difficulties.
What a mess.
Another European Union train wreck is approaching as Cyprus, another small, financially precarious eurozone member, is about to assume the EU presidency July 1 for the next six months.
The EU chairmanship rotates among its 27 members, in alphabetical order. The turn of Cyprus, population about 800,000, is next, starting Sunday. The EU total population is about 495 million, so leading the pack for six months automatically constitutes a major challenge for a small nation, regardless of its financial situation.
On top of everything else, however, Cyprus is basically broke, in need of $12.5 billion for its banks and public obligations, with $2.3 billion required by the end of the month. Its situation of penury is a direct result of the close links of its banks and finances in general to Greece, itself in dire straits.
It gets worse, from the point of view of the EU. Cyprus under its present government, led by the only Communist president in the EU, Demetris Christofias, would rather do its borrowing from Russia, instead of from the rescuers of the other messed up eurozone countries, Greece, Ireland, Portugal and Spain, who are being kept afloat by the European Commission, the European Central Bank and the International Monetary Fund. Russia loaned Cyprus $3.1 billion last year and does not impose the same sort of sharp austerity terms on its debtors as the international institutions do.
Thus, Cyprus, which shouldn't have been in the EU in the first place without having been required to sort out its differences with the Turkish northern part of its island, and nearby Turkey itself, is rapidly approaching becoming another European deadbeat state.
At the same time, the European Commission, the European Central Bank and the IMF will have the privilege of competing with China and Russia, which are seeking to expand their economic interests on and around the island, in offering terms to the Greek Cypriots to bail them out of their costly, self-inflicted difficulties.
What a mess.
How many days till this nightmare ends????
Didnt Barroso tell your white headed leader off this week?Read more: http://old.post-gazette.com/pg/12180/12 ... z20FpLqwLw
