Friday, March 22, 2013

Don't Forget the Geopolitics of Cyprus


I've heard a couple of interesting scenarios ... that should Cyprus leave the Eurozone the door would open for Russian influence, or ... that an independent Cyprus would be attractive for annexation by Greece. I think there is something else at play here that makes such extreme possibilities vocalized now. Cyprus has proven itself to be the Eurozone's Achilles' Heel. Should Cyprus exit the Euro, it sets a precedent for the other countries suffering from the effects of austerity currently. The message sent should Cyprus exit is "It IS possible for a state to exit." That, more than anything else, has to be the major concern for Germany and the ECB. Forget Russia, the whole Eurozone could fracture if Cyprus leaves, no scenario is more threatening than that for those trying to keep the wheels from coming off.
Read the Article at HuffingtonPost

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