• JUser: :_load: Unable to load user with ID: 165
Log in
A+ A A-

Cyprus' Economic Predicament May Affect Divide

  • Written by 

The economic crisis hindering Cyprus may quicken an agreement regarding the nation's divide, as proclaimed by United Nations Special Envoy Alexander Downer.

Downer described: "Do the math. If Cyprus were reunited it would lead to substantial investments to the island". Discussions on reunification talks restarted between the Greek and Turkish Cypriots on February 11th, 2014.

After substantial natural gas reserves were identified in the eastern Mediterranean region, the island's peace outlook has gained focus. An accord between the two parties may facilitate a constructed gas pipeline through Turkey. The pipeline would alleviate Europe's dependance on Russian gas. Additionally, PRIO Peace Institute's financial attributes of a peace deal on the island survey's initial data, predicts an added 18 billion euros to Cyprus' economic state over a 20-year period.

The southern Greek eurozone territory controlled by a globally accepted government, had to be assisted by the IMF and the EU, as a result of a financial sector crash that left the region on the verge of bankruptcy. Its lenders forecast that the financial state of the nation won't recover until a contracted 10% comprehensive output occurs. Cyprus' historical divide controversy has hindered Turkey's attempt to become an EU member. Downer stated, "Economic circumstances, harsh as they are, can and have reminded people that a solution is beneficial for the island".