People rightly protest some grotesque measures, levy of a 7% tax on all savings accounts and 10% for deposits above €100k. It couldn’t happen to a nicer people. Cyprus is well known for shady financial deals, money laudering and tax evasion. Even the recent EU horse meat scandal in processed food had its roots in Cyprus murky corporations. Russian billionaires have also used Cypres to avoid taxes, so why is Putin angry?

I have a grudge against the Greek Cypriots after the “country” joined the European Union in an election where a deal made with their Turkish counterpart were left out in the cold. Now the same people are fed up with the harsh EU measures imposed to avoid bankruptcy. I must wonder how Turkey is doing, their economy is strong and growing at an healthy rate. The nation is becoming a regional player as Greece is getting what it deserves for decades of financiaal deceit, corruption and financial mismanagement.

Economic Crisis in Cyprus: Repercussions, Turkey and the Turkish-Cypriots

A series of statements and articles depict the way in which Turkey views the economic crisis in Cyprus and how it tries to utilize it for its own political benefit. Turkey’s Minister of EU Affairs and Chief Negotiator, Egemen Bağış, is at the forefront of this discourse. In early December, 2012, he said – in a rather sarcastic tone – that “Just as we provided $5 billion in loans to the International Monetary Fund, we will consider helping the Greek Cypriots if they request this”, and he continued,

    “The Greek Cypriot economy faces bankruptcy today. The Greek Cypriots are suffering due to their policies that exacerbate the deadlock. Had the Greek Cypriots favored a solution, the whole island of Cyprus would have been in a better financial situation. We will still extend a helping hand if necessary.”

That was an effort to upgrade Turkey’s image, downgrade the RoC’s image, and project Turkey as a willing-to-help party while disregarding entirely the legal obligations, stemming from the occupation, of Turkey toward Cyprus. On another occasion Bağış tried both to worsen and capitalize on the situation in Cyprus by saying that “Investors who have money in Greek Cypriot banks should think carefully; this [economic] crisis could affect them, too. It is better for them to invest in Turkish banks.”

Why Turkish Accession Depends on Mediation of the Cyprus Dispute

Election correction: Turkey and the EU  by gname @BooMan in 2007

July 20, 2007 – On Sunday, Turks will go to the polls to elect a new parliament. This earlier-than-expected election will be the latest chapter in the decades-long debate over secularism and democracy that has defined modern Turkey, as well as the culmination of months of political tension. In April, Prime Minister Recep Tayyip Erdogan and his Justice and Development (AK) Party nominated Abdullah Gül, Turkey’s foreign minister, to be the country’s next president. But the nomination was stymied in parliament–the body charged with electing the country’s largely ceremonial president–over concerns about Gül’s religiosity and the AK Party’s mildly Islamist roots. Even more ominously, the Turkish military registered its disapproval by suggesting that Gul’s election would be part of a “growing threat” to the secular republic. Instead of nominating a less controversial figure that could have broken the political impasse, Erdogan decided instead to try and renew his popular mandate by calling for early elections.

 « click to enlarge map
The southern part of this Mediterranean island (the Greek Area) is called the Republic of Cyprus (RoC),
and is controlled by the officially recognized Cyprus government.

But the factors at play in this weekend’s election extend beyond Turkey’s borders. For decades, Turkey’s tortured courtship of the European Union proceeded at a snail’s pace. But after the AK Party won a parliamentary majority in 2002 and Erdogan became prime minister the following year, Turkey made remarkable progress in implementing the liberal reforms needed for eventual EU membership. In recent years, however, the vision of Turkish accession to the EU has grown dimmer, and the prospects for the continuation of much-needed reform in Turkey have dimmed with it. A victory for the AK Party on Sunday will leave the path to reform open. But, ultimately, the success of Turkey’s reform movement rests not just with Erdogan, but with the EU itself.

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