Another Greek Drama

“The government which was increasing its spending every year while revenue was falling, failed to protect the Cypriot banks from the consequences of the Greek haircut, refused to take measures to reduce the budget deficit and was excluded from the markets insisted that it was blameless. It was a victim of alien forces.”

Not all of Cyrpus believes that Germans are about to invade and steal their sheep. The above is from an editorial in the English language Cyprus mail:

We shouldn’t buy into their drama, Cypriots did this to themselves, they were warned for 5 years. But their previous government was communist and openly espoused conspiracy theories.

A favorable €10bn loan that EU taxpayers must borrow on the capital markets for isn’t enough. No, Cyprus wants EU taxpayers to guarantee the entirety of their debt so that they can continue to spend and remain in denial over the horrific debt their government and banks have massed over their heads. Of course the Cypriot government and bankers blame the Germans. Imagine that the population discovered the scale to which they were defrauded by these leaders and bankers.

The EU/EZ is doing the island a disservice by not engaging the Cypriots in a debate over what went wrong and who is responsible. By remaining silent the EU/EZ acquiesce in the role as villains.