Cyprus Bailout | South Too Broke to Pay Wages & Pensions

Cyprus Bailout | South Too Broke to Pay Wages & Pensions

It is becoming clear that the south’s government left their application for a EU bailout a little late and that this month there could be a shortfall of €75m needed to pay salaries and pensions. Although there is a reserve of €85m, €160 is needed for April’s payments. Until parliament passes the required bills the €10bn needed to save the south’s economy is out of reach.

There is some concern that although the south’s current government accepts the bailout terms, and the need for austerity, opposition parties and religious leaders seem to favour leaving the Euro and going it alone. This failure to accept that the south’s economy is ‘maxed out’ and that cutting back spending is the most sensible way forward may lead to a collapse of the south until the disputed gas reserves theoretically reinvigorate it. However, if the Eurozone collapses in the next year or so, perhaps the decision to leave it sooner than later might be more sensible than it currently seems?

Print Friendly, PDF & Email

Comments are closed.