Cyprus-Forum.com

[supporttheunderdog]

An Interesting suggestion as a possibility emanating from the leader of main governing party AKEL, but dismissed by the Government itself....

So what are the pros and cons?

[Lordo]

oh no. what will the europeans do now.

what the hell difference will it make. when you are bankrupt no matter which currency you use you are still bankrupt.

[GreekIslandGirl]

More USA puppets from the UK jumping on any opportunity to wish ill on the Euro and EU.

[Mapko]

oh no. what will the europeans do now.

what the hell difference will it make. when you are bankrupt no matter which currency you use you are still bankrupt.

Stupid Turk - you know the value of nothing. Now, here's 100,000,000,000,000,000 Turk Lira - go and get me a can of Coke.

[Lordo]

oh no. what will the europeans do now.

what the hell difference will it make. when you are bankrupt no matter which currency you use you are still bankrupt.

Stupid Turk - you know the value of nothing. Now, here's 100,000,000,000,000,000 Turk Lira - go and get me a can of Coke.

http://uk.ask.com/web?q=turkish%20lira%20exchange&askid=25ae63ca-f894-4b1d-b892-384bf26b9e0d-0-uk_gse&kv=sdb&dqi=turkish+lira+exchange&qsrc=2089&o=41648332&l=dir

[Mapko]

oh no. what will the europeans do now.

what the hell difference will it make. when you are bankrupt no matter which currency you use you are still bankrupt.

Stupid Turk - you know the value of nothing. Now, here's 100,000,000,000,000,000 Turk Lira - go and get me a can of Coke.

http://uk.ask.com/web?q=turkish%20lira%20exchange&askid=25ae63ca-f894-4b1d-b892-384bf26b9e0d-0-uk_gse&kv=sdb&dqi=turkish+lira+exchange&qsrc=2089&o=41648332&l=dir

I think you just made it worse - you devalued and devalued and devalued your Mickey Mouse currency so much there was nothing else left to do but scrap it and bring out the Turk 'New' Lira! How long before a two year old child, with pocket money of 50 pence a week, is a multi-billionaire in Turkey?

[Get Real!]

You’ve asked two different questions…

Will Cyprus leave the Euro?

Successive Cypriot governments have proven too incompetent and daft to decide critical issues for themselves and a Eurozone exit is one such issue so I only expect them to follow Greece deeper and deeper into the cesspool for a very long time before anyone elected is brave and clever enough to take drastic action.

Should Cyprus leave the Euro?

Absolutely! The government of Cyprus has TWO kinds of debt… internal and external. The external debt is what they owe to foreign entities the terms of which are being negotiated/decided with the EU (Troika) but the internal debt is what they owe to the Cypriot public and companies in the form of Long service leave, Healthcare, Subsidies, Pensions, bad debts, etc for which the EU is NOT negotiating and probably doesn’t care about!

So if we only allow the government of Cyprus to cater for the maintenance of the external debt guess who is going to suffer long term? If however the government of Cyprus returns to its unique local currency it means that it will be able to devalue its currency as required to also take care of its huge internal obligations which will in turn stimulate the Cypriot economy into paying its external debt.

If there’s no mechanism to stimulate the local economy then the relationship becomes more like that of an unemployed person and a lone shark! Certain eternal ever-growing debt with no solution in sight!

[Piratis]

I am not an economist, but I believe that leaving the euro is a very bad idea.

First of all, just talking about it can harm the economy of Cyprus since those who have money in the Cypriot banks (both Cypriots and foreigners) can take their money abroad in order to avoid having them being turned into pounds and devalued.

Secondly, returning to pound which will be devalued is the same as reducing salaries and benefits across the board (not targeted) which will harm the most needy the most. Prices of everything imported (probably 90% of products in Cyprus) will sky rocket.

What should be done is to get the state smaller and more efficient. Cut the red tape. Greatly reduce the number of municipalities. Turn the government into e-government and have everything (apart maybe from the military) run online and transparent. Privatize whatever can be private. Understand the sectors that Cyprus can be competitive and support those sectors. Those who work in sectors which are not competitive should be helped to move to other sectors. To unemployed people, asylum seekers etc do not just give benefits, have them do something in order to get the benefit, e.g. clean up Cyprus - anybody can do that. In education, support those who study subjects that are needed by our economy - if somebody wants to study something different he shouldn't expect any support from the state or any unemployment benefits when he will not be able to find work, etc

[cyprusgrump]

Clearly Cyprus should leave the €uro!

The €uro experiment was going to be a disaster from the start - you simply can't join the economies of countries like Germany and Cyprus together - their needs are so different.

The only way to make the €uro work is to give up sovereignty and accept ever closer political and economic union. In effect Cyprus would be run and ruled from the unelected in Brussels.

Who wants that?

[B25]

Elected unelected, can't be any worst than we got now, can it.