April 25, 2013

Cyprus: Reunify or Die

The Economist, The Economist

AP Photo

CYPRUS, it is said, never misses an opportunity to miss an opportunity. After its euro bail-out, that needs to change, not least for the sake of its battered economy. Cypriots face the grim reality that, thanks mainly to the collapse of much of their financial-services industry, GDP will shrink by 15% this year, another 15% in 2014, and perhaps 5% more in 2015 (see article). That is a comparable drop to 1974-75, after a Greek-backed coup followed by a Turkish invasion led to the island’s partition into a Greek-Cypriot-controlled south and a Turkish-Cypriot-controlled north.

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