TRNC News Today 7th May 2013

RASMUSSEN: ‘CYPRUS PROBLEM SHOULD BE SOLVED’

NATO Secretary General Anders Fogh Rasmussen said that the Cyprus problem should be solved in order to improve the NATO-EU co-operation.

Organizing a press conference, Rasmussen indicated that the Cyprus problem should be solved for the fundamental solution of the problems in the NATO-EU relations. Rasmussen said: ‘I am making a call to all parties in Cyprus to make progress and find a solution for the Cyprus problem and unite the island. There are many things that are risked in terms of the economy and parties will benefit from the reunification of the island’.

Moreover, Rasmussen added that research of oil and natural gas could start after finding a solution to the Cyprus problem and furthermore political obstacles in front of the NATO-EU partnership will be removed.

INCREASE IN CONTRACTION OF GREEK CYPRIOT ECONOMY

The contraction in the economic activities of South Cyprus in 2012 is expected to become worse.

According to the European Commission ‘Spring Session Economic Forecast Report’ the gross domestic product of South Cyprus which regressed by 2.4% in 2012 is expected to decline by 8.7% also in 2013.

In the report it has been stressed that the restrictions in the banking sector in South Cyprus have a great role in this contraction and the situation has become worse after the capital controls and withdrawal restrictions have been imposed in the banking sector.

The report stressed that the contraction in the economic activities will also affect unemployment negatively and recorded that unemployment is expected to rise in 2013 and also in 2014. It is also noted that decrease in demand is expected to decrease the inflation.

The Cyprus Mail Newspaper which is being published in South Cyprus covered the news under the headline: ‘EU predicts no light at the end of the tunnel’.

Source: TRNC Public Information Office