Cyprus-Forum.com

by **tsukoui** » Mon Mar 25, 2013 1:08 pm

Archbishop Chrysostomos II had suggested that when the time was right, Cyprus should leave the eurozone, telling Realnews, a Greek newspaper, that the single currency could not last.

"The euro cannot last," he said. "I'm not saying that it will crumble tomorrow, but with the brains that they have in Brussels, it is certain that it will not last in the long term, and the best is to think about how to escape it.

"It's not easy, but we should devote as much time to this as was spent on entering the eurozone."

He said Cyprus had believed that by entering the eurozone there would be "solidarity", but "they are strangling our economy".

“We were told we needed €17bn, but for a Europe with a budget of trillions it should not be a problem to find a solution. With the sort of behaviour that we are being treated with now, I believe it is better not to be in the eurozone,” said the archbishop.

“When the time is right, Cyprus should leave the euro.”

http://www.telegraph.co.uk/finance/financialcrisis/9951813/Cyprus-archbishop-urges-eurozone-exit.html

by **ludo1981** » Tue Mar 26, 2013 2:39 pm

this archibishop as a PHD in god not in Economy. he should close his mouth time to time.
every sunday he is giving his pray to the thiefs that organised this fiasco. 17 billions dete are not comming from the interference of EUROgroup but from the greedy Cypriote bankers.
MORE JUSTICE LESS PRAY.

by **Get Real!** » Tue Mar 26, 2013 3:05 pm

ludo1981 wrote:this archibishop as a PHD in god not in Economy.

Had he known anything about God he wouldn’t have amassed so much earthly wealth!

by **Kikapu** » Tue Mar 26, 2013 4:15 pm

Now that the dirty has been done to Cyprus by the ECB and the IMF, by being able to reach and take depositors money over the insured 100,000 Euros, any Eurozone 17 members states citizens who has more than 100,000 Euros in their accounts, would be a fool to leave their money over the 100,000 in their banks. This action by the ECB & IMF in many ways might has guaranteed the demise of the Euro sooner or later. Switzerland will welcome their deposits!

by **B0B** » Tue Mar 26, 2013 8:23 pm

cyprus has already left the euro
with capital controls in place prohibiting money to leave the island
the ecb has effectively created a cypriot euro
soon in cyprus the cost of goods will be very different from the cost of the same goods in the rest of europe
simply because there will be no way for the trade here to use the same financial tools like everywhere else

and yes - cyprus would be better off with the cyprus pound
because the important decisions would be taken by cypriots, not by germans

by **Elaine1** » Fri Mar 29, 2013 10:33 am

The cyprus pound was one of the strongest currencies before joining the euro. (£1.71?) But I read suggestions that if we reverted it would be a straight exchange rate (1£C=1EURO)- which would be calamity for the cost of living in cyprus.
In all this the cypriots have been abandoned by those who should be supporting them, shame on the international community for allowing this to happen.

by **lucius** » Fri Mar 29, 2013 2:41 pm

B0B wrote:cyprus has already left the euro
with capital controls in place prohibiting money to leave the island
the ecb has effectively created a cypriot euro
soon in cyprus the cost of goods will be very different from the cost of the same goods in the rest of europe
simply because there will be no way for the trade here to use the same financial tools like everywhere else

and yes - cyprus would be better off with the cyprus pound
because the important decisions would be taken by cypriots, not by germans

Contrary to popular belief the euro is not run by Germans. If it would the quantitative easing that also the ECB went on would not have happened. I agree that reverting to it´s own currency might help Cyprus in future, but i am not so sure it would have prevented the problem. For instance Latvia still has it´s own currency, but many consumer credits were denominated not in local currency but in euro because the lower interest rates for this credits in euro. In the wake of the 2008 crash the Latvian currency devalued massively vs. the euro. The problem then was the debt was still denominated in euro and doubled in local currency. The Latvian answer because of that experience? They most likely will be joining the euro in mid year. Unbelievable, but true. Also in their case that might be not the bad decision as it sound, because the labour cost there are among the lowest in the EU. Losing competitivness by not able to devalue the currency is not their primary concern.

My analysis to the problem in Southern europe (and also Cyprus) is that its competitivness vs. Northern and Eastern europe (because of lower labour costs there) shrunk relatively to them. The joining of the euro then made this economies even more import & domestic driven then they already were. So, joining the euro for this states (or staying in) was not the brightest idea in my opinion. But, getting out of a currency union is certainly more complicated then getting in. As long as most debts (state or private) are domestic rather than foreign it should be relatively easy in my opinion.