The current situation of Greek economy is bad, and it’s going to stay this way for awhile. However, Greek crisis is not only limited to Greece, it affects the whole Mediterranean region. Today, its consequences reach the Republic of Cyprus. Even though the economy of Cyprus continues functioning, Harris Georgians, who represents Ministry of Labor and Social Insurance of Cyprus, says that it is going to collapse in the next three to four days.
According to Cyprus bailout shakes markets :”Eurozone finance ministers demanded on Sunday that Cypriots pay up to 10% of their bank deposits in exchange for a €10bn (£8.5bn) bailout…“ The Cyprus government tries to accomplish this through extreme austerity measures such as rising taxes on bank accounts of Cyprus citizens. Citizens are expected to pay 6-9% percent of their bank savings. The later action has provoked big discontent among different social classes. As a result, numerous protests are taking place across the Republic of Cyprus and people are taking as much money as they can from their accounts.
This situation is plus one to many financial problems that EU is facing right now.