Policy Paper 96
 

The way out of the Cyprus economic crisis

In this policy paper, Andreas Theophanous gives an account of the current situation in Cyprus, and proposes two scenarii of a way out of the Cyprus economic crisis: a reframing of the current Troika’s philosophy, or a temporary exit from the euro area.

|   10/09/2013             |   Andreas Theophanous             |   Economics and finance
Policy Paper

This
policy paper presents the current
situation in Cyprus, and proposes two scenarii of a way out of the Cyprus
economic crisis: a reframing of the current Troika’s philosophy, or an eventual temporary exit from the euro area.

After having analysed the current economic, political and social
situation of Cyprus, the president of the Cyprus Center for European and
International Affairs Andreas Theophanous presents two hypothesis which could lead to better deal with the crisis in Cyprus. The first
consists in a reframing of the
Memorandum of understanding applied by the Troika’s and its philosophy
and implications. The second elaborates on how a
possible temporary exit of Cyprus from the euro area could be an
alternative option.

The author concludes
by a wider reflexion of the political dimension of the options Cyprus faces.