Mass demos demand to end the government’s link to the Troika and to refuse to follow its dictats.
Interview with Athina Kariati, New Internationalist Left (CWI in Cyprus)
After months of ‘calm’ the capitalist debt crisis has resurfaced over the banking meltdown in Cyprus, sending financial markets into a spin. EU ministers and the newly elected right-wing Greek Cypriot president have demanded that small savers, ie Cypriot workers, pay €billions for a banking bailout.
But angry workers in Cyprus are refusing to accept these capitalist dictats, with Cypriot CWI members helping to organise mass protests outside parliament. Already, the government is making concessions.
Who is responsible for the current financial crisis?
The European financial crisis is now at its sharpest here in Cyprus. The capitalist class is responsible for this crisis.
The economy in Cyprus was in relatively good shape compared to other EU countries but over the last 18 months the crisis in the banking sector has meant that the country is now facing bankruptcy.
The main problem is that the Cypriot banks invested in Greek bonds in order to make quick profits but because of the ‘haircut’ which Greek bondholders had to take this caused a massive problem of liquidity and the small economy of Cyprus has been unable to recapitalise the banks.
It is clear that the crisis is the fault of the banks not the public sector workers or the general population.