Economy

Our Country In Ruins - Young People In Cyprus Start To Panic

Queues at ATMs in Cyprus. Many are withdrawing the maximum 500 euros each day
Queues at ATMs in Cyprus. Many are withdrawing the maximum 500 euros each day
Vanessa Steinmetz

NICOSIA - Cyprus is in a state of shock. The banks have been closed for days and somehow, the country has to raise 5.8 billion euros to qualify for the bailout package proposed by euro zone finance ministers.

The initial rejection by the Cypriot parliament to the controversial bank account levy plan, has left this small Mediterranean island wading in the deepest economic uncertainty in memory. What does it mean for its around one million residents? More pointedly, it's younger generation is facing the hardest questions: Should we up and leave? Hoard our money? Or just hang in there and stay optimistic?

Suddeutsche Zeitung spoke to four young Cypriots:

Nick, 29, Architect
I have been so stressed these past few days that I couldn’t even concentrate on my work because I’m so worried about the future. Until last Friday, I’d always thought that everything would turn out okay, just give it a couple of years – but now everything’s a lot worse. It didn’t make much difference to me whether the parliament voted for or against the EU’s plans. Either way, Cyprus’s economy has been destroyed.

I became self-employed three years ago. I’m now assuming that all my clients will put their projects on hold and I will have to give up my company. So, I’ve decided to emigrate and maybe go to London where I lived for a couple of years. A lot of my friends are also thinking of leaving Cyprus because they’re going to be out of jobs soon, too. My father’s employer told him not to come to work anymore because at the end of this week he wouldn’t be able to pay him. My parents are as worried as I am, but they can’t just pack up and leave.

What's happened has destroyed our financial sector. Politicians in Northern Europe did that on purpose. They want investors to place their money in other countries like Malta, for example, or Germany. I think Germany would like to see a lot of that money. That’s why I feel betrayed by the EU. If you have a friend and he asks for your help you don’t stab him in the back.

Marianna, 30, Ministry of Education employee
What’s happened here in the past few days has shocked me and made me worried. Many people here are panicking. Every day we go to the ATMs and withdraw money – we can take out up to 500 euros per day daily from our accounts; anything over that amount is frozen. We keep the cash at home. I am so worried about my savings and my family’s investments. I’m a little less worried about my job because I have a permanent contract. But my sister, for example, lost her job two months ago and still hasn’t found a new one. It’s like that for so many people.

We’re all waiting to see what happens and nobody knows if some kind of account levy will be introduced or not. The whole country is in a state of anxiety about this. Along with tourism, our financial sector is the most important part of our economy and it’s being destroyed. I don’t see how we can have a healthy economy in the future. The only choices seem to be enormous damage or total catastrophe.

In my opinion this is all down to political games; partially against the Russian investors and partially thanks to Angela Merkel strategically positioning herself for the German federal elections later this year. We feel we’re being dealt with unfairly.

Konstantinos, Music Producer
I lived abroad for nine years and made a lot of concessions in order to be able to return to Cyprus. My family and I have been back here for a year and during this time, the place has collapsed.

As a music producer I’m self-employed and depend on getting my own projects. Though I do still have work, I’m earning a quarter of what I was a few months ago. From that standpoint, the latest developments haven’t hit me all that much: the economy was already going down the tubes.

Still, the whole thing makes me unhappy. Not because I’m scared for my savings but because so many people don’t want to really acknowledge what’s going on here. Nobody’s actively trying to find a solution. Instead they’re looking for scapegoats to blame everything on.

Cyprus is ruined. Not because any particular decision was made, but because the banks speculated with our money – I think they should lock up the people responsible for that.

Konstantinos, 27, Entrepreneur
We’ve been feeling the crisis here for a while now and you can see it in the stores -- there’a not a lot left to buy. Now, people are paying a lot more attention to how they spend their money. I own a small office supply company and demand has been dwindling -- in fact for the past three days there hasn’t been any at all.

I'm not overly worried about my savings, but I do wonder about Cyprus’s future and how the economy can be stabilized. I don’t have any answers – that’s why I didn’t go into politics. I trust our politicians and their decisions. We voted for them and have a right to expect that they’ll act in our interest. The EU’s decisions, on the other hand, aren’t necessarily in the interest of people here.

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Geopolitics

"The Truest Hypocrisy" - The Russia-NATO Clash Seen From Moscow

Russia has decided to cut off relations with the Western military alliance. But Moscow says it was NATO who really wanted the break based on its own internal rationale.

NATO chief Stoltenberg and Russian Foregin Minister Lavrov

Russian Foreign Ministry/TASS via ZUMA
Pavel Tarasenko and Sergei Strokan

MOSCOW — The Russian Foreign Ministry's announcement that the country's permanent representation to NATO would be shut down for an indefinite period is a major development. But from Moscow's viewpoint, there was little alternative.

These measures were taken in response to the decision of NATO on Oct. 6 to cut the number of personnel allowed in the Russian mission to the Western alliance by half. NATO Secretary-General Jens Stoltenberg said the removal of accreditations was from eight employees of the Russian mission to NATO who were identified as undeclared employees of Russian intelligence." We have seen an increase in Russian malicious activity for some time now," Stoltenberg said.


The Russian Foreign Ministry called NATO's expulsion of Russian personnel a "ridiculous stunt," and Stoltenberg's words "the truest hypocrisy."

In announcing the complete shutdown in diplomacy between Moscow and NATO, the Russian Foreign Ministry added: "The 'Russian threat' is being hyped in strengthen the alliance's internal unity and create the appearance of its 'relevance' in modern geopolitical conditions."

The number of Russian diplomatic missions in Brussels has been reduced twice unilaterally by NATO in 2015 and 2018 - after the alliance's decision of April 1, 2014 to suspend all practical civilian and military cooperation between Russia and NATO in the wake of Russia's annexation of Crimea. Diplomats' access to the alliance headquarters and communications with its international secretariat was restricted, military contacts have frozen.

Yet the new closure of all diplomatic contacts is a perilous new low. Kommersant sources said that the changes will affect the military liaison mission of the North Atlantic alliance in Moscow, aimed at promoting the expansion of the dialogue between Russia and NATO. However, in recent years there has been no de facto cooperation. And now, as Foreign Minister Sergey Lavrov has announced, the activities of the military liaison mission will be suspended. The accreditation of its personnel will be canceled on November 1.

NATO told RIA Novosti news service on Monday that it regretted Moscow's move. Meanwhile, among Western countries, Germany was the first to respond. "It would complicate the already difficult situation in which we are now and prolong the "ice age," German Foreign Minister Heiko Maas told reporters.

"Lavrov said on Monday, commenting on the present and future of relations between Moscow and the North Atlantic Alliance, "If this is the case, then we see no great need to continue pretending that any changes will be possible in the foreseeable future because NATO has already announced that such changes are impossible.

The suspension of activities of the Russian Permanent Mission to NATO, as well as the military liaison and information mission in Russia, means that Moscow and Brussels have decided to "draw a final line under the partnership relations of previous decades," explained Andrei Kortunov, director-general of the Russian Council on Foreign Affairs, "These relations began to form in the 1990s, opening channels for cooperation between the sides … but they have continued to steadily deteriorate over recent years."

Kortunov believes the current rupture was promoted by Brussels. "A new strategy for NATO is being prepared, which will be adopted at the next summit of the alliance, and the previous partnership with Russia does not fit into its concept anymore."

The existence and expansion of NATO after the end of the Cold War was the main reason for the destruction of the whole complex of relations between Russia and the West. Today, Russia is paying particular attention to marking red lines related to the further steps of Ukraine's integration into NATO. Vladimir Putin's spokesman Dmitry Peskov previously stated this, warning that in response to the alliance's activity in the Ukrainian direction, Moscow would take "active steps" to ensure its security.

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