The existing turbulent debt crisis in the Eurozone is only the tip of the iceberg before the real storm destabilizes the lives of millions of citizens of the perceived mythological “EU happy family”.
Debt-ridden EU countries are confronted with a social and economic hurricane never experienced before, not in Europe at least! An entire continent has become susceptible to financial turmoil due to flawed directives, introduced by a wasteful institution immersed in extravagance, and a bloated bureaucracy under a lavish existence, at the expense of taxpayers. Susceptible to fraud, each year billions of unaccounted for Euros go missing to phantom corporate recipients, farmers and questionable government programs! Even the EU’s own auditors have never been able to balance the books of the European Union; it is no wonder the Eurozone is in tatters!
The crisis is self-inflicted, and it’s not because of a bad world economy; that is precisely what governments want the public to believe! In fact, the Commission has repeatedly failed miserably to address the underlying causes of the crisis, especially of the unemployment problem; it is much safer to blame others! International speculators are notorious for spreading doomsday rumours to create panic in the markets, and in the process, make a killing with obscene profits! It has been noted that banks always accrue astronomical profits in times of crisis…
Dealing with the unemployment problem should have been a priority of the EU and yet, it’s not. There are no precise numbers of unemployed persons – governments usually provide vague statistics and these are mostly manipulated to cover up their failures – but it is generally estimated that over 35 million people are long-term unemployed across the 27 Eurozone countries, which make up a population of nearly 500 million people. Eurostat statistics (2011) indicate that there is 64.1% employment rate across Europe, while Cyprus has a 69.7% employment rate.
That aside, the EU has now come up with a new brainstorm; to create a new federal country. What that means: a new Europe! Chancellor Angela Merkel calls this new entity a “fiscal union” giving the Franco-German alliance more influence and control over the rest. Astonishingly, most EU countries (excluding Britain who vetoed the project) seem to be in favour of this new treaty, including tiny Cyprus. The new pact is now on an irreversible course towards a “fiscal union” to underpin the Eurozone currency, which is to be incorporated into the Constitutions of member-states. When that happens, it will make it impossible for governments to implement their own budgets or make crucial economic and foreign policy decisions, without prior approval of Brussels. The trap is set…
This corporate institution, motivated by economic governance has arisen out of the ashes after the World War II. It was the brainchild of a French diplomat named Jean Monnet – 9 November 1888 – 16 March 1979. He based his master plan on the Prussian principle of domination, which by deception, it fused independent sovereignties – often by violence – into one super state: Germany!
Monnet felt that this could be repeated again across Europe under the pretext as having an economic objective, but which in reality would inevitably, and irreversibly, lead to a federation without their peoples’ understanding of what was really happening; an irrevocable marriage without a divorce! He believed that the gradual loss of one’s national currency, its taxation policies, its border control, its army and especially its banking autonomy along with a watered-down national constitution, would ultimately lead to the absolute domination of all the other nations.
The gloves are now off! This new “fiscal union” could be the straw that breaks the camel’s back. In retaliation to joblessness and crippling taxation, public disgruntlement is on the rise and is likely to trigger off a massive revolt! The history of taxation is a history of discontent and misery: Legitimate taxation can breed resentment; illegitimate taxation on the other hand, with unemployment, can breed revolt! Some experts and political analysts do believe that the economic crisis and this new metamorphosis of the “EU happy family”, may ultimately cause it to implode and self-collapse. Ten years on and the Euro, the backbone of this union may now be abandoned by a number of states – for it has been a complete disaster!
Some simple statistics may bring some light what awaits the Eurozone economies including Cyprus in the next year. The forecasts are certainly not encouraging at all! Since its introduction, the Euro fell to a ten year low against the yen. Business optimism in Europe fell from a net 0 per cent to -17 per cent, according to the International Business Report by the accountancy Grant Thompson. The concern of the business is that the EU is focus on austerity measures rather than economic growth across Europe. Yet most other industrial countries including North America rose 6 per cent and the Bric economies rose from net 25 per cent to 34 per cent.
Should Cyprus worry? It certainly should, for it is ensnared like a mouse in a trap and if the EU collapses, the Republic will also be affected! Like a chunk of cheese in a trap, Cyprus has been nibbled away by the EU from the very first day. Cypriot politicians have failed miserably to negotiate a good deal for Cyprus – unlike the UK who stood its ground in the interest of Britain and its people! Instead, they have decided – without offering citizens their democratic right to express their opinion on a Referendum – to abandon the right to govern. Inch by inch inglorious politicians are gradually transferring constitutional powers to unelected EU bureaucrats. By giving up those constitutional powers, Cyprus can no longer consider itself an independent nation but rather a subjugated province of the EU!
Citizen Joe demands an answer; where has this promised “prosperity” gone? Has it trickled down to Cyprus and its citizens? Certainly not! Economic indicators show the contrary. Before 2004, Cyprus enjoyed a strong currency that could be adjusted to meet the needs of the day; its economy was booming; it boasted of having zero unemployment; stable economy; affordable cost of living, and excellent living standards. There were also positive signs for a long-term sustained growth. Today, it’s a different story; EU Cyprus is in recession and in a serious financial crisis in line with the rest of Europe. The European dream of prosperity has now turned into a nightmare for a number of member-states and millions of people.
To cope with the crisis, a squandering Cyprus government has set out to raid industry, businesses and people’s income, by introducing higher taxation, apply austerity measures, borrow billions of Euros and reduce spending on social services, education and other areas while its monetary credit rating has plunged so low, it’s embarrassing. If that was not bad enough, tiny Cyprus is also legally obliged to contribute 460 million Euros to shore up the IMF Eurozone bailout for countries in economic crisis such as Italy, Greece, Spain, Portugal and Ireland.
The greatest misconception of all has been the matter of “security”. People were wrongly convinced that becoming a member of the EU would provide security and get rid of the Turkish military occupation. At least, that was the overwhelming perception! The truth of the matter that it was the biggest sleight of hand by the government of all times! In fact, the EU has never promised such a commitment. It was rather “assumed” by a euphoric clan of shameful politicians and the media.
If Cyprus is to remain a free nation it may have to reconsider its EU relationship. It would have been more advantageous to remain an associate member within the Customs & Trade Agreement of the EU for trade and industry, rather than becoming a full member. Possibly, it may be necessary to abandon the Euro altogether and bring back its own currency; renegotiate its immigration agreement and regain control over its borders. But above all else, opt out of the “fiscal union” which will ultimately give bureaucrats total control over EU Cyprus. EU membership has been not only bad but also disastrous for Cyprus, with the exception of creating a massive new non-productive bureaucracy to deal with EU matters.
The discovery of hydrocarbon deposits, if handled wisely, may be the only catalyst to bring about positive changes for a lasting peace on the island. But for that, the government must amend or scrap the unworkable Cyprus Constitution, establish a Cyprus Sovereign Gas Fund and make new political alliances with powerful nations. Adversaries and enemies of the past soon become friends in the name of profits. This is a great opportunity to start a new chapter in the history of Cyprus. Squander it and it will be disastrous for all the people.
Peace and prosperity, can only work on the principle of: one-man-one-vote based on the Rule of Law. The government needs to reassess its position and if necessary, cease the present negations to partition the island into two ethnic communities before its too late; the public opposes this and it will never work! Instead, and without further delays, it must take decisive action and lead the nation forward in the interest of Cyprus, and not in the interest of the European Union.

Andreas C. Chrysafis is the author of:
ANDARTES – a revolutionary novel based on true events during the EOKA uprising.
PORPHYRA in PURPLE – a metaphysical spellbinding novel for all ages.
WHO SHALL GOVERN CYPRUS – Brussels or Nicosia? – In-depth Political analysis
All books are available from: Bookshops, Barnes & Noble, Amazon.co.uk, Amazon.com, Waterstone’s, Kindle and the Internet. Other published articles can be found on Google under “Vanishing Cyprus” or under “Andreas C Chrysafis”