Cyprus-Forum.com

[GreekIslandGirl]

..and such was the passionate and vociferous support from Greece towards their Cypriot kinsmen, the world stared in disbelief and the Cypriot citizens were humbled with awe and amazement...


Yup, the coffee is cold.

Oh, now they are "kinsmen"? What should they do?

[kurupetos]

^^ (also to prove that I am not anticoonist)

[jonah]

I know it will be bad if Cyprus pulls out of the Euro in the short term,but would it be a good move for the Cyprus economy in the long term.

[cyprusgrump]

I know it will be bad if Cyprus pulls out of the Euro in the short term,but would it be a good move for the Cyprus economy in the long term.

Quite right...

[GreekIslandGirl]

I know it will be bad if Cyprus pulls out of the Euro in the short term,but would it be a good move for the Cyprus economy in the long term.

Economics isn't why Cyprus entered the EU. It's about security against the Turks. With the Gas finds, Turkey would have by now invaded the WHOLE island - if we were not already protected by the EU.

So leaving the EU does NOT enter into the equation. Which is why Cyprus is vulnerable to such extreme acts of experimentation. All this applies to Greece btw also.

Besides, the Euro is doing well. Compare that to the UK which is out on its own, constantly printing money but going backwards, sterling dropping relative to the Euro - Eventually Cyprus might see some economic benefits from being in the EU - but that's not a priority right now.

[kurupetos]

I know it will be bad if Cyprus pulls out of the Euro in the short term,but would it be a good move for the Cyprus economy in the long term.

Yes, that's part of what we need to do, mate. When we have the gas, we should adopt something similar to the Norwegian model.

[jonah]

Greekislandgirl,I asked what would be the affect of Cyprus leaving the Euro not the E.U!!!

[GreekIslandGirl]

Greekislandgirl,I asked what would be the affect of Cyprus leaving the Euro not the E.U!!!

Same as the answer I gave. Both Greece and Cyprus were allowed into the fold of the EU in order to join the eurozone. This is where they are most useful to the EU, in exchange for the safety net of the EU.

Personally, I believe those EU countries who have no intention of joining the eurozone should be thrown out. They cause instability.

[Jerry]

I suppose what Anastasiades should have done is to tell Putin that all foreign deposits were going to get a serious haircut unless he, Putin, could come up with the 17billion loan on very favourable terms. Now I don't see how, with a diminished banking industry, the Cyprus economy can support and repay even a 10billion loan. And I doubt too many Russian tourists will be stopping over, except to clear their bank accounts of course.

[Demonax]

I suppose what Anastasiades should have done is to tell Putin that all foreign deposits were going to get a serious haircut unless he, Putin, could come up with the 17billion loan on very favourable terms. Now I don't see how, with a diminished banking industry, the Cyprus economy can support and repay even a 10billion loan. And I doubt too many Russian tourists will be stopping over, except to clear their bank accounts of course.

Jerry, this is exactly what Christofias did. He begged the Russians for an additional loan but the Russians decided to do nothing beyond a restucturing of their 2.5 bn loan. Then the Germans pulled a fast one and decided to effectively seize Russian assets and drive Russia out of Cyprus in the long term. The Russians have been blindsided and are pretty angry for good reason.