The great ordeal

The agreement was "painful, but the best we could secure". As known, these words are contained in a televised message to the nation by Cypriot president Nicos Anastasiades, after the deal struck in Brussels with the Eurogroup. Thanks to this decision, limitations to prevent capital outflows upon the reopening of the banks will only be temporary. ""Cyprus was a breath away from economic collapse", "our choices were not easy and the environment was not ideal but after tough negotiations, with persistence and also a sense of responsibility, we have reached a result that ensures this country’s future". How did Cypriot citizens react to the news? Nike Giurlani for SIR Europa asked Antonis Hajji Yannaki, member of the Economic Council of the Maronite Eparchy in Cyprus. What was the cause of this situation? "Cyprus has made many mistakes in the past, that’s why we find ourselves in troubled waters. For decades we perpetuated a costly and inefficient public sector. The banking sector expanded rapidly, without appropriate supervision. Unfortunately the interests of specific groups of people have been more decisive that public interests". What do you think of the agreement reached between Cyprus and the Eurogroup? "For Cyprus such compromise was very hard to accept. The agreement has already caused serious problems to the banking system and to national economy. However, Cyprus avoided bankruptcy and managed to access funding by the European stability mechanism".What are the economic and social perspectives for the Island? "In the coming years the social and economic environment will undergo drastic changes. Perceptions regarding the future of Cypriots are rapidly changing. There is widespread insecurity, unemployment reached unprecedented levels, and the worse is yet to come. We will be facing ever more difficult times before things start to get better. Social exclusion, unemployment and poverty will be the main features of the Cypriot society in the coming years". What are the priorities that could ensure economic recovery? "Our Country must look ahead. We are aware that the financial sector will be downsized and that the country’s economy will enter a phase of deep recession. We need to identify other sectors of the economy on which Cyprus has a comparative advantage. I refer for example to energy, natural gas, renewable energy sources, health and education. The financial sector will remain an important sector of Cypriot economy, but we have important key factors offered by human resources and know how".What do you think of the position of the European Union? "The European Union brings together a group of Countries that share the same interests and the same dreams. Cyprus should continue its good relations with the European Union and also realize that the EU and the eurozone have specific rules that must be respected. The public opinion is skeptical towards the EU, a result of the ongoing economic downturn. But I believe that this sentiment will soon change". What is the situation for youths, what do they expect from the government and the EU? "Youth unemployment rates in Cyprus are high, amounting to 27%, with monthly increases. Most young people have a university degree, but they can’t enter the job market. The situation was ongoing even before the economic downturn. Things are worse now. Cyprus’ government must provide state aid to national employment programs previously funded by the European Union. The government will have to consider privatizations so as to boost job creation for the young".