Skip to main content
Black Listed News

Crisis in Cyprus Threatens EU Role and Legitimacy

Published: March 22, 2013
Share | Print This


Source: Money News

Flag of Europe

By rejecting an EU bailout and turning to Russia for help, Cyprus is exposing growing frustration and dwindling solidarity within a bloc that was meant to bring the continent closer together after World War II.

The chaos over the rescue plan, which the Cypriot parliament roundly rejected Tuesday, has renewed many of doubts about the legitimacy of the European project — notably over perceived German dominance and threats to national sovereignty. The extraordinary spectacle of an EU member seeking salvation from the old Cold War enemy has raised deep questions about how far Europe can and will go to take care of its own.

"I think there is a clear danger of Cyprus being rescued by Russia and the eurozone being seen as less relevant, unable to rescue Cyprus," said Vassilis Monastiriotis, an expert on southeastern Europe at the London School of Economics.

"It will raise many issues about the legitimacy of the European Union," he said. "Countries may seek financial help from China or Arab states and this may disintegrate the European Union, making it less relevant as an institution."

Ever since the financial crisis five years ago put pressure on heavily indebted countries — from Greece to Portugal to Ireland — the bailouts have become as much a political as an economic issue, with wealthy Germany taking on the role of bogeyman because of its insistence on strict austerity measures as a condition for help. Cyprus' proposed bailout ratcheted up the potential pain by demanding for the first time that depositors help pay for the rescue with their own savings.

Read More...


Share This Article...


Subscribe To Updates
Blacklisted Newsletter
Blacklisted Radio
Blacklisted Nation
On Twitter
On Facebook
The DoomCast
Podcasts on Demand
Podcasts on Spreaker
Podcasts on Youtube
Podcasts on iTunes
Podcasts on Stitcher
Podcasts on Tunein
Podcasts on Roku

Support Us
Donate Today!

Affiliates
Shop Amazon
Golden Eagle Coins
6 Dollar T-Shirts
DHGATE.COM
The Ready Store
Onnit Labs
Audible Audio Books
Blue Host




BlackListed News 2006-2014