This is an excellent article published in the Moscow Times and well worth a read. Check it out!
Ahead of the German election in September, Cyprus got a very tough financial deal from the troika (EC, IMF and ECB) in March because of political pressure from Berlin. As a result of excessive austerity, Cyprus and her citizens will suffer much unnecessary pain over the next few years. Whilst Cyprus remains in crisis because of the terms of the austerity package, elsewhere in the world, excessive austerity has been totally discredited by mainstream economists like Paul Krugman and even the IMF itself.
Although Cyprus has many olive trees, it would be wise for Europe’s leaders’ to reach out to Cyprus and try to help her realize her strategic goals, like effective production of offshore gas and oil; it’s a time for olive branches.