EU's Juncker praises Cyprus recovery after bailout

NICOSIA: European Commission President Jean-Claude Juncker praised Cyprus Thursday for its budding economic recovery after harsh bailout terms saved the eurozone member from meltdown.
"Cyprus found itself in a difficult economic position in 2013, but the Cyprus I am visiting today is very different," he said after meeting President Nicos Anastasiades on his first official trip to the island.
"The economy is beginning to grow, the financial sector has stabilised and you are again ready to take advantage of the opportunities of the future," he added.
A nearly bankrupt Cyprus obtained a €10 billion (RM41.43 billion) bailout from a troika of lenders — the European Commission, European Central Bank and International Monetary Fund.
In exchange, the government was forced to adopt austerity measures that combined revenue hikes, mostly through higher taxes, and slashed spending.
It was also forced to restructure the banking system in an operation that saw many large depositors lose a hefty chunk of their deposits.
In an apparent nod to Greece and its woes, Juncker said Cyprus was an example to follow.
"Tough decisions and commitment paid off in Cyprus, as they did in Ireland, Portugal and Spain. I hope that others will take note."
Cyprus has been praised by the troika for adopting the austerity measures and not flinching from a tough reform programme, with high hopes it will exit a more than three-year recession in 2015.
Juncker's two-day visit is also an opportunity to check on the UN-brokered peace process between the Greek- and Turkish-Cypriot communities on an island divided since 1974.
"This is a unique opportunity, and we should not lose the momentum," Juncker said. "I am convinced that you are determined to put all the efforts needed into ways to come to a good solution."
"If this happens, and I pray that this will happen, this will not only be good news for Cyprus, this will be good news for the entire European Union."
Juncker will also meet Turkish Cypriot leader Mustafa Akinci to discuss "how the Commission can better help the Turkish-Cypriot community to prepare for the period after the settlement of the Cyprus issue."
He and the two leaders will have a working lunch together in Nicosia's UN-controlled buffer zone.
On Friday Juncker will wrap up his trip with an address to parliament.
A divided Cyprus joined the European Union in 2004 following a failed peace plan, which effectively saw European law only applied in the government-controlled south of the island and not the Turkish-held north.
Stalled UN-brokered peace talks were relaunched on May 15 in what is seen as the best chance in years to reunify Cyprus.
In 1974, Turkey invaded the country and occupied its northern third in response to an Athens-inspired coup seeking union with Greece. — AFP