CYPRUS REUNIFICATION IS KEY FOR ECONOMIC RECOVERY

Cyprus faces years of economic hardship. The country’s economy is estimated to contract a whopping 13 percent over the next two years. By contrast, Turkey with a population of almost 75 million boasts an annual output of $ 800 billion compared to Cyprus $ 24 billion. The International Monetary Fund predicts Turkey will grow 3.4 percent this year and 3.7 percent next.

The present financial crisis in Cyprus can be like an opportunity to resolve the differences and end division between North Cyprus and Greek Cyprus. If the island was to unite, there would be a greater economic potential. A solution to the Cyprus problem will be economically very beneficial and it  certainly will be well received by the international community. Reunification would reduce the sovereign risk of investing in Cyprus, clear up the problems of investing in property, grow GDP and offer capacity to service and pay off debt. It would be an economic boon to Cyprus just when it needs one.

A sustainable economic recovery for Cyprus can only be achieved through closer ties with the region’s biggest and most dynamic economy, Turkey.

Cyprus should swiftly seek a reunification deal with the northern part as that would boost its economy. A political agreement with Turkey could also make it easier for Cyprus deliver to its newly found offshore gas reserves to European markets. Turkish investors will only invest in Cyprus when there’s a reunification. The business model must come through reunification. A reunification within the European Union.