Financial meltdown in Cyprus avoided

The Finance Minister in his 2014 budget speech said Cyprus had avoided economic collapse, but that living standards would continue to fall for another three years.

Finance Minister Haris Georgiades said tough austerity was the only way Cyprus could win back its credibility after the debacle of the bailout drama and banking crisis. He said every euro had to be accounted for after the reckless spending of the previous administration, which saw the public debt widen by €7.5 billion in four years. “If the public pay roll had not reached the biggest in Europe, comparatively, then we would not be in this difficult position,” said the minister.

And Cyprus’ bailed out economy is not expected to see the grass roots of recovery until 2017 a much bleaker outlook than predicted by the Troika, said a recent report by auditors EY.

Source: InCyprus

Cyprus Profile

articles | 13 December 2013