- Nicos Anastasiades, Cyprus President
After almost a year of strict government regulations and becoming the first EU country to seize bank deposits and impose capital controls in order to avert a financial collapse, Cyprus President Nicos Anastasiades pledged to lift all restrictions on capital movement in January. After entering the Euro area in 2008 Cyprus has been living through a severe economic crisis and last week the country was approved another 1.5 billion euros tranche by the Eurogroup. This is a part of the 10 billion aid confirmed earlier this year. While risks for austerity programme and economic recovery are still high, Anastasiades stressed out the country should now focus on creating the appropriate conditions for economic growth.
At the same time, Cyprus neighbour, Greece is suffering from a 48-hour stoppage, as people are protesting against the planned civil service cuts and forces transfers. The trigger is a part of bailout conditions for the next 1 billion euros tranche, under which the government should replace 25,000 civil servants on a reduced salary before they will redeployed or fire. While a partial private-sector is also planned, the government points out the necessity of these reforms, as public sector has grown too large over the last decade. Greece Prime Minister Antonis Samaras also claimed the budget deficit will soon be wiped out and the economy will be able to reach pre-crisis levels in six years.
© Dukascopy Bank SA