The key to saving our country

Former President George Vassiliou in an article in the papers yesterday refers to the dire economic situation on the island and says that the only hope we have of changing things is through a solution of the Cyprus problem.

He paints a bleak picture of the current economic situation in Cyprus referring to forecasts by the European Commission of a contraction of GDP by 3.9 per cent and of the University of Cyprus by 8.0 per cent, a budget deficit of 8.4 per cent, unemployment of close to 20 per cent and 40 per cent for the young.

However, the required liquidity to overturn the situation, he says, is not there, as the banks, faced with continuously rising NPLs and falling deposits, are unable to give loans to businesses and finance development projects.

“As for the hope – entertained by many – that all these problems would be solved by the billions expected from natural gas, it is, at least for now, proving a midsummer night’s dream,” he adds.

The only way to change things, he says, is through the resumption of talks on the Cyprus problem, not in order to continue interminable negotiations but to secure a settlement in the next few months.

“This aim could be achieved because it will have the full support of the UN, the EU and the big powers and could result, in a short period of time in the re-unification of our country,” he adds.

Vasiliou goes on to dismiss the oft heard argument that ‘foreigners’ want to exploit the economic crisis in order to impose a settlement that would be in their interests, saying this argument lacks seriousness, as “the Cyprus issue ceased being a concern of the big powers a long time ago.”

He says a settlement would drastically change the perception of Cyprus abroad, showing that it is as safe a country as any other member-states of the EU.

In addition a solution would allow Cyprus to become a member of the Schengen area, protecting it from the uncontrolled entry of foreign nationals and settlers. It would also attract people wanting to buy expensive houses or invest in the economy with a view to securing a residence permit and being able to travel without difficulty within the EU.

Mr Vasiliou also referred to the fears of secession of a Turkish Cypriot federal state amongs Greek Cypriots.

“I am not under the illusion that Mr Eroglu would ever stop supporting the two-state principle. But this should not frighten us because the EU, of which we are a full member, would never countenance its breaking up into hundreds of state entities,” he said, pointing to how the financial crisis has resulted closer ties among Eurozone members.

“Not even Turkey would support secession because she knows very well that a) it is unattainable and b) if Turkey insisted she would be internationally isolated and face huge economic and political problems,” he stressed.

Concluding he said we should make the most of the opportunities we have  to restart  the talks and do our utmost for their speedy conclusion.

According to Politis, informal efforts are being undertaken to reach an agreement on a joint statement between the two sides in Cyprus, through the US ambassador who is to-ing and fro-ing between the two sides.

The paper says that the two sides are again within a whisker of an agreement on a statement that secures the ‘three singles’ (single sovereignty, nationality, and international identity), while at the same time also satisfying the Turkish Cypriot desires for internal checks and balances within a federation.