Lafazanis Tells US: Choice to support Russian natural gas pipeline is beneficial for Greece

Greece is not a plot and cannot be blackmailed, nor does it believe that with its choices in the energy sector can become "part of a problem", stated Productive Reconstruction, Environment and Energy Minister Panagiotis Lafazanis in response to statements from US Department of State coordinator for International Energy Affairs Amos Hoschstein in regards to Greece's stance on a proposed Russian natural gas pipeline.

During the 31st convention of the International Coordinating Committee "Justice for Cyprus" (PSEKA), Hochstein demanded that the construction of the gas pipeline from Turkey to Greece be stopped. He claimed that the pipeline would undermine alternative plans to supply energy resources to Europe and increase reliance on Russia.

     "We are dealing with the energy crisis in Europe. If Greece continues to promote a pipeline for supplying Russian natural gas to Europe, it will be part of the problem, not a solution," Hochstein said.

According to him, Central and Eastern European countries buy gas from only one supplier, but now it is possible to diversify shipments and "Greece would play a major role" in the diversification.

Lafazanis was quick to reply:

     "On the contrary, our choice to support a pipeline carrying Russian gas on Greek territory is nationally and economically beneficial (for Greece) and gives positive solutions for cooperation, sufficiency in energy and the safety of the region and Europe. Greece is following a new independent and multidimensional energy policy with the ambition to make the country a multilateral energy hub within which will be allocated and distributed the routes and the natural gas origin sources without exclusions and neo Cold War prejudice. The new emerging independent Greece is a source of stability, safety and trust for all peoples. A force that shows a different way for peace, progress, justice and relations of equality among all countries." 

Earlier in May, on a visit to Athens, Hochstein had apparently voiced his opposition to the construction of the new gas pipeline. At the time Lafazanis had once against said that the project would serve Greece’s national interests.

Note on PSEKA conference: Greek-American and Cypriot-American leaders from across the United States representing major national and local organizations of the community gathered in Washington, DC for the 31st Annual Cyprus and Hellenic Leadership Conference June 3-5. The Government of Cyprus was represented by the Presidential Commissioner for Humanitarian Issues and Overseas Cypriots Photis Photiou. The conference was held to show the importance Cyprus can play as a strategic partner of the United States, in a volatile area and influence high-level administration officials who formulate U.S. policy toward Cyprus, Greece and Turkey.

Editor's Note: We are not fans of SYRIZA, and especially Mr. Lafazanis but we applaud him for his stance and courage. Greece has every right to make its own decisions that are beneficial to the country's national interests. Because of our geo-strategic position, many foreign interests have never allowed Greece to accelerate and develop its energy industry. This was about to change in 2007 with former conservative leader Costas Karamanlis when he foresaw the tsunami that was coming and decided to steer Greece towards the East. As such, China made a huge investment in Greece and today the Piraeus port can challenge other major ports in Europe. He also listened to his long-time advisor and veteran diplomat Petros Molyviatis and strengthened relations with Moscow with the aim of making Greece an international energy hub. Unfortunately we all know what happened to him. His government was toppled from the inside from various conservative hawks (D.B) and from American puppet George Papandreou, he was discredited and made to look incompetent and there was even an attempt to assassinate him. It takes courage to say NO to the West. Until now only Costas Karamanlis was able to say NO on the issue of FYROM, Cyprus and the Grey Zones in the Aegean. Let us hope that Lafazanis will follow suit. If you want to find out more about the manner in which the US has been pressuring Greece over the past few years to abandon its energy ambitions with Russia because of its own interests, and what happened when Karamanlis decided to say NO to the West then please click HERE.

Provocative Comments by US Ambassador to Cyprus Spark Strong Reaction

By George Psyllides (Cyprus Mail) - The Cyprus government on Wednesday said a statement by US Ambassador John Koenig that he did not see the Cyprus problem as one of invasion and occupation was unacceptable and only served to create problems in the ongoing dialogue.

     “It disregards and fully contravenes historical events,” government spokesman Nicos Christodoulides said. “Such statements create problems in the ongoing dialogue, and to a considerable extent, it is statements like these that for years have hindered progress in the Cyprus problem.”

Asked if the government intended to protest to the US, Christodoulides said: “the ambassador was expressing his personal positions; despite this, yes, the matter will be discussed with the American government.”

Koening made the comment during an open discussion at the University of Cyprus on Wednesday evening.

When one student brought up the issue of Turkish troops and settlers in Cyprus, Koenig said the US certainly did not support the occupation of another country, nor did it condone the practice of settling.

     “The Cyprus conflict of course began 51 years ago and in that context of course it took a huge and tragic turn in 1974, and I am not in any way justifying what happened then, but it cannot be reduced to a problem of invasion and occupation,” he said. “That is in fact to ignore your own history. But I do not regard the Cyprus problem as a problem of invasion and occupation. If you don’t like it, I can’t help it. I do not regard that as the core of the Cyprus problem.”

He then pointed out that the Greek Cypriot view was not necessarily shared by Turkish Cypriots and urged an honest inward glance as to why that might be. The ambassador was referring to the inter-communal strife that broke out on the island three years after independence.

The main clashes started in December 1963 although there had been violent incidents between the two communities even before the British gave up control of the island. The violence started after Archbishop Makarios proposed 13 amendments to the constitution, ostensibly to make it more functional following a deadlock in parliament caused by the vetoes of Turkish Cypriot legislators. There was disagreement and the Turkish Cypriots left their posts – they say they were forced out – in parliament and the government. By 1974, much of the island’s Turkish Cypriot population was living in enclaves, which started forming after 1963.

As expected, the ambassador’s statement infuriated Greek Cypriot political parties. House President Yiannakis Omirou described it as a “monument to insolence” and an “affront to American foreign policy”.

Main opposition AKEL said the statement was provocative and unacceptable.

Instead of trying to help the procedure, once more, the American ambassador makes it difficult with his misplaced statements.

     “If the Cyprus problem is not a matter of invasion and occupation, then what are Turkish troops doing on the island for more than 40 years?” spokesman Giorgos Loukaides said.

He also wondered why United Nations resolutions demanded the withdrawal of the troops.

     “We do not need Mr Koening to convince us that the Cyprus problem has its internal aspect. From there however, to the claim it is not an invasion an occupation problem, there is a huge distance,” the party spokesman added.

DIKO chairman Nicolas Papadopoulos said the ambassador made the claim because that was what the Turkish side considered.

EDEK said the government must immediately ask for the ambassador’s withdrawal.

The party said after his unacceptable and historically unfounded references, Koening was persona non grata.

Koening’s term ends this summer.

EVROKO said the statement caused grief, anger and disappointment to the Cypriot people, while the Citizens’ Alliance said he acted as an ambassador for Turkey and its expansionist designs.

The Green Party said it was not convinced Koening was expressing his personal position but rather that of the US government.

Issue of Cyprus, economy & energy to top Anastasiades' talks in Athens

The developments on the Cyprus issue, as well as economic and energy issues will dominate the talks that Cyprus President Nicos Anastasiades will have in Athens, where he will pay an official visit on Friday. According to Cyprus government spokesman Nikos Christodoulides, Anastasiades is planning to brief Greek Prime Minister Alexis Tsipras on the developments in the Cyprus issue and the imminent resumption of talks. Christodoulides said that the Greek Cypriot side is more than ready for the third phase of the negotiations.

Christodoulides said that there will also be talks on economic issues, including Nicosia's request for the lifting of the 26 percent tax, imposed by the Greek government on imports of goods and services. The spokesman said that according to the indications so far, Athens will respond positively to the request. Energy issues will also be discussed while the two sides will decide upon their next steps.

On his part, Tsipras is expected to brief Anastasiades on the progress of the negotiations that Athens is having with the institutions of the European Union.

ANA-MPA

Cyprus Wants To Host Mars One Simulation Station

Cyprus is to apply to the Mars One project to host one of its simulation locations ahead of the 2024 first-ever mission to the Red Planet, an official at the commerce and tourism ministry said, citing the move as a great boost for the island’s tourism, and its space ambitions.

The Mars One project plans to create several Earth-based simulation outposts for training, technology try-outs and evaluation ahead of the mission. The design is based on six assembled transit modules making up living quarters, private areas, food production, life support systems, surface access, recreational areas and mission operations.

Each location will pose different possibilities and scenarios for testing astronaut candidates. Several regions around the world will be chosen for (psychological) testing and equipment testing for wind, dust, temperature, and isolation, all criteria which Cyprus meets, according to officials.

A location for the Simulation Outpost Alpha has not been chosen yet and the project is open to applications from various countries. The simulation training may be turned into a reality TV show with the world voting for the first four-man team who will go to Mars.

Read more: http://cyprus-mail.com/2015/04/01/cyprus-ideal-to-host-mars-one-simulation-station/

Greece to hold military exercises with Cyprus, Israel and Egypt

During an official visit to Cyprus, Greece's Defense Minister Panos Kammenos announced that Greece, Cyprus and Israel would carry out joint military exercises, while Egypt is also expected to participate.

While in Cyprus, Kammenos met with his Cypriot counterpart Christoforos Fokaidis. Speaking to the press he said that the Cypriot dispute remains a matter of “invasion and occupation” for the Greek government, while he stressed that the presence of the Turkish Barbaros research vessel in the area remains a “clear provocation”.

Interestingly, Turkish provocations continued while Kammenos was arriving in Nicosia. Reports claim that a Turkish Navy frigate was instructed to enter the Cypriot EEZ and monitor the ongoing surveys for hydrocarbons.

Asked about whether or not we should expect the revival of a Joint Defense Doctrine, Kammenos said that this issue would be decided in the months to come.

On his part, Fokaidis thanked Greece for showing its support to Cyprus and stated that Greece and Cyprus are the main pillars of stability, security and democracy in the region.

Cyprus Decision To Allow Russian Use of Military Bases Angers Brits

Cyprus’ offer to allow Russia the use of air and navy bases on its territory has reportedely triggered a feud with Britain, which is concerned over Russian military activities amid the Ukraine crisis.

The top British envoy to the island made a series of warnings to Nicosia recently regarding the gas crisis in the eastern Mediterranean and the use of military bases by Russia during an interview with Greek daily Kathimerini, sparking reaction from Greek Cypriot leader Nicos Anastasiades.

In his interview, British High Commissioner to Cyprus, Damian Roberick Todd, said the EU has a common and voted stance against Russia over the recent developments in Ukraine, urging the government to act according to this.

According to a report in the Turkish daily "Hurriyet" Anastasiades reacted to Todd’s remarks, asking the envoy to avoid using “baseless” words.

     “There is an old [defense] agreement, which should be renewed as is. At the same time, some additional services will be provided in the same way as we do with other countries, such as, for example, with France and Germany,” the Cypriot president reportedly said. “Cyprus and Russia have traditionally had good relations, and this is not subject to change.”

Andreas Papandreou Airbase, which was constructed by the southern Cypriot government jointly with Greece, is presumed to be the base at issue.

Both France and Israel have also demanded use of the facility.

However, a draft military agreement approved by the Cypriot cabinet last month included permission for Russian aircraft to land on the base.

The final signature on the agreement is expected be inked during Anastasiades’ Moscow visit at the end of this month.

Britain already has the use of the Aktotiri airbase and the Dhekelia naval base on the island.

Hurriyet

Turkey Rejects Tsipras Proposal To Recommence Cyprus Talks

The proposal made by Prime Minister Alexis Tsipras to recommence talks on the Cypriot dispute was apparently rejected by the government of Ankara, said that Turkish daily Hurriyet in one report on Tuesday.

Sources told the paper that the Turkish government is not willing to withdraw the Barbaros research vessel from the Cypriot EEZ and that Ankara is not planning on changing its stance on the issue.

Turkey, according to the author of the article, is standing by three positions: That a UN solution is promoted; that the natural sources belong to the united Cyprus and that a committee be formed to manage any income derived from natural resources.

Greece and Cyprus consider these positions unacceptable and stress the need for Turkey to end its provocations and respect the sovereignty of Cyprus by withdrawing its research vessel from Cyprus' EEZ, so that talks can recommence.

Reference: Hurriyet

Tsipras: Greece & Cyprus pillars of stability in the region

Resolving the Cyprus issue is the cornerstone for Greek-Turkish relations and the consolidation of stability in the region, Prime Minister Alexis Tsipras said in joint statements with Cyprus’ President Nicos Anastasiades after their meeting in Nicosia on Monday. The enikos news site quoted Tsipras as saying that the economic crisis has burdened Greece and Cyprus and ending the Troika model would be a "positive institutional step." The Greek PM added that both Greece and Cyprus remain two significant pillars of stability in the region.

When asked to comment on Turkey’s violation of Cyprus’ exclusive economic zone (EEZ), Tsipras apparently noted the dispatch of the "Barbaros" research vessel which he said is "a flagrant violation of the international law and undermines the bilateral talks.”

When reporters asked him about a possible Russian loan, the Greek premier said that the government in Athens is in discussions with partners who have already lent Greece much needed capital and he noted that there are "no other thoughts" (on a possible loan from Russia).

He did however state that Cyprus and Greece can become "a bridge of peace" between Europe and Moscow.

(Editor's Note - Let us hope that the solution to the Cyprus issue does not come with another devastating Annan-type plan...  Moreover, we cannot forget the statements that have been made over time by various SYRIZA MPs regarding Greek-Turkish relations and the division of the Aegean Sea. Also, the recent comments by the government, or its sudden warming up to Moscow, does not convince us here at HellasFrappe that Greece has suddenly decided to rebuild its ties with Russia. We have yet to see any tangible hands on efforts towards such a development. As far as we are concerned it could just be deaf statements by the Tsipras government who we truly believe -judging by the Ministers and MPs that represent it- to be another Papandreou-style government. We truly hope that our instinct is wrong on this issue because we believe that Greece should befriend all nations, and be on equal terms with both the super powers of the West and the East. One of our readers asked us to give SYRIZA the benefit of the doubt... We will, and every time they adopt decisions that benefit Greece we will applaud them, however they are failing to convince us about their sudden love for Russia because they already turned down several privatisation offers -which were reportedly made by Russians in Greece-, and let us not forget that last week they also turned down the Chinese offer for the port of Piraeus.)

SUSPICIOUS: IMF holds back bailout funds for Cyprus

The (resource-sucking) International Monetary Fund (IMF) said earlier this week that it is not going to give Cyprus a further 88 million euros in funds under its bailout program after Cypriot lawmakers decided to suspend a foreclosure law.

The IMF announced the postponement of the loan installment on Thursday.

    “Following today’s suspension of the existing legislation on foreclosure, critical requirements for the completion of the fifth program review are now no longer met,” the IMF said in a statement.

The IMF further said the “next steps” would be discussed with authorities in Cyprus, adding, “We look forward to continued cooperation, and will agree with the authorities on next steps in the period ahead.”

Parliamentarians in Cyprus said they decided to suspend the foreclosure law in order to give the government time to draft additional insolvency legislation to act as an extra buffer aimed at protecting those who lost their jobs or witnessed cuts to their salaries.

Cyprus received its last tranche of bailout loans in November after Nicosia amended laws on foreclosure and on forced sales of mortgaged property, as part of conditions of the loan.

September last year, the IMF agreed to grant 84.7 million euros in financial aid to Cyprus, as part of a 10-billion-euro bailout program to the country, known as the Extended Fund Facility.

The bailout is aimed to save Cyprus from bankruptcy and possibly guarantee its future in the eurozone.

The country plunged into economic meltdown in 2012 as Greece’s financial crisis spilled over, crippling Cypriot banks and forcing depositors to accept reductions in the value of their bank accounts.

presstv

Davutoglu In Athens To Discuss Cyprus Issue (& Hydrocarbons)

Turkish Prime Minister Ahmet Davutoglu would arrive in Athens on Friday in order to participate in the Third Supreme Council of Cooperation with Greece. Sounds innocent enough, but a reports about the Turkish delegation's trip to Thrace had sparked a wide range of criticism over the past few days so to avoid any diplomatic problems, it was announced that Davutoglu is going to meet up with Muslim clerics and MPs from Thrace (in Athens perhaps).

(Oxi Giannis, Giannakis)

His visit comes at a time when there are increased tensions over energy deposits in the Mediterranean and as a result there are quite a few people who are opposed to his visit. To limit all possible complications, circulation will be limited in downtown Athens on Friday (and protests and marches have been prohibited).

Prior to the meetings, Davutoglu is set to meet with President of the Republic Karolos Papoulias and Greek Prime Minister Antonis Samaras. Press reports in Greece claim that Foreign Affairs Ministers Evangelos Venizelos and Melvut Cavusoglu are also going to attend these meetings as well.

The same sources speculate that the topic of discussion will center around the Cypriot dispute, but the recent developments in the Cyprus' EEZ, (where Ankara insists on carrying out hydrocarbon surveys), do not really make for the perfect setting, nor are they grounds to make analysts believe that something positive will come out of these talks.

It should be reminded that ahead of the talks Cavusoglu once again made it clear that Turkey is not going to withdraw the Barbaros survey vessel in Cyprus EEX so as to facilitate the resumption of talks as long as the government in Nicosia continues its search for oil and gas without the involvement of Turkish Cypriots.

     "Whenever the unilateral drilling activities will stop we will withdraw the Barbaros," he told the Kathimerini newspaper.

The talks are part of confidence-building measures launched in 2010 to improve relations between the Aegean neighbors. So far, some 50 accords on immigration, disaster response, tourism, health, transport, agriculture, immigration, culture and sport have been signed (but who knows if they have been respected). It is important to note that one of these accords is apparently going to be "re-evaluated" during the visit.

ANALYSIS - Did Cyprus΄ dream to become a major gas provider go up in smoke?

The regional conflict involving Cyprus, Turkey and Greece over energy reserves discovered in Cyprus΄ proximity in 2011 has escalated. After a number of recent failures in the international arena, the Turkish government may feel that it needs a victory in the Eastern Mediterranean at all costs. The following dilemma has given way to a great analysis on the situation by the PressProject. HellasFrappe decided to republish the article so that our readers can obtain a better understanding of what stakes are at play. We just want to point out that the views and opinions that are posted in this article do not necessarily agree and/or disagree with our own.

The story is fairly well-trodden now. Back in October 20, a research vessel, accompanied by two navy ships, was sent out from Turkey to do seismic testing within Cyprus's Exclusive Economic Zone (EEZ), an abuse of the UN Convention of the Law of the Sea, and an intimidation that led to Cyprus immediately calling off the ongoing peace talks between Cyprus and the self-declared TRNC (Turkish Republic of Northern Cyprus) in northern Cyprus.

With a Turkish navy ship also observing the deep-sea drilling of gas deposits from eight kilometers away, we are seeing an escalation of a conflict that began when large gas deposits were discovered in Cyprus' proximity in 2011.

     "The least I can say is that negotiations, in order to produce results, cannot be conducted under such conditions of provocation," said Ioannis Kasoulides, the Cypriot foreign minister.

From Cyprus's perspective, a peace process cannot be undertaken in the context of such provocation. Turkey is acting illegally against a former foe to strongarm its way to natural gas deposits in the Eastern Mediterranean that lie under Cypriot sea. But is there more to this dispute than meets the eye?

Undersea gas deposits should - and still could - transform Cyprus's economy, which has suffered greatly since 2011. An estimated 5 trillion cubic feet (tcf) of gas was thought to be discovered in one offshore field within Cyprus's EEZ three years ago; the Cypriot government subsequently licensed U.S. energy firm Noble, Italy’s ENI and France’s Total to turn the discovery into an economic reality.

Added to that the likelihood of Cyprus becoming a gas hub, with new-found Israeli gas also running through it to reach European markets, while being surrounded by energy consumers eager to wean themselves off Russian gas dependency, it is easy to see how Cypriots saw undersea gas as a panacea to their economic strife.

It seems that neighbours Turkey and the TRNC had other ideas. In the eyes of Turkey, Cyprus is an illegitimate country, as the TRNC is to the rest of the world. Pro-government newspapers this week have been discussing the fact that Cyprus's EEZ was always disputed by Turkey, and the last maritime agreement that both countries agreed to was in 1960, in which much of the gas fields are within Turkey's range. Ergo, Turkey has a claim on the gas - and is willing to settle for some sort of share of the proceeds being given to the northern part of the island.

The problem facing Ankara here is that regardless of what it believes, the rest of the world failed to sufficiently sympathise with the Turkish invasion and does not recognise TRNC. Furthermore, Turkey has failed to receive any hint of EU or American backing, and is running out of friends - as its recent failure to join the UN Security Council as a temporary member illustrates. "The United States respects the Republic of Cyprus' sovereignty and right to develop resources in its exclusive economic zone, in keeping with customary international law,” chided Joe Biden via an official statement earlier this month.

While Cyprus is focusing on trying to extract natural resources, the Turkish president Recep Tayyip Erdogan's current foreign policy seems to involve making as many enemies in the region as possible, alienating Kurds, Shias, and Israel; and governments opposing the Muslim Brotherhood; meanwhile traditional foes such as Greece and Armenia persist in the background. Lukewarm efforts against the Islamic State have angered many governments worldwide. So with Turkey's reputation at rock-bottom, is it more than just coincidence that Cyprus chose this moment to provoke the old adversary?

From Cyprus's perspective the timing is understandable. A country in economic dire straits has a now-or-never moment to plunder its lucrative natural resources, while its neighbour is too busy fighting other battles and trying to restore its flagging reputation.

To raise the stakes, Cyprus has threatened to veto any further Turkish EU-joining procedures. Meanwhile Israel and Egypt eagerly joined the dispute. Egypt, which has got on well with Cyprus ever since the days of Nasser, is irritated by Erdogan's pro-Muslim Brotherhood rhetoric, and are in need of a local gas imports as well as EU-member allies. Meanwhile Israel and Turkey have been carping at each other for the past four years; Israel badly needs this disagreement settled so it can start drilling for gas and sending it across to Cyprus. Cyprus, Israel, Egypt and Greece have held  several meetings this month. But how far will these countries allow the crisis to escalate?

Many countries would fold under the such international pressure. To place Turkey in this category however would be to underestimate the belligerence of Erdogan when under pressure. When criticised, his instinct is usually to double-down, particularly with an election drawing close. His parliamentary majority is very safe and most of the media are afraid to criticize his policies. His strong position, domestically, gives him flexibility in how he deals with this crisis; the Turkish navy has been strengthened a great deal this year; Erdogan's supporters seem to appreciate his tough rhetoric that now incorporates Israel and Egypt as well as Cyprus.

After a number of failures in the international arena lately the Turkish government may feel that it needs a victory in the Eastern Mediterranean at all costs. So how far could this go? It is worth considering what might constitute a 'victory'. Earlier this month the TRNC's foreign minister, Özdil Nami, was invited to Israel for a major energy conference, suggesting that at least Israel can envisage a positive outcome involving both sides of the island.

Would some compensation for the TRNC be a fair outcome? Whatever one may feel about the rights and wrongs of the northern occupation, one might suggest that treating one group more favorably than the other holds moral implications. Furthermore, Cyprus would benefit from a settlement in the sense that under the current economic climate, any capital inflows are welcome. With this in mind, the current bout of sabre-rattling between the two states could well be an elaborate bluff, designed to make the financial settlement for either side be as favorable as possible.

The outcome may depend upon whether Erdogan sees the vested interests in the Eastern Mediterranean as part of a zero-sum game or not. Turkey may not enjoy watching its neighbours get stronger for geopolitical reasons, but on the other hand, it, too, can benefit from having more diverse resources. A potentially alternative source of natural gas to Russia should always be welcome - as Erdogan clearly seems to think, judging by his trip to Turkmenistan last week, where gas contracts have been signed.

Turkey should be able to benefit economically from having more prosperous neighbours, as it has with its trade with northern Iraq. It has already started selling electricity to TRNC, and soon will sell water. For the past two weeks Sabah, a government mouthpiece newspaper, has kept silent on the Cyprus issue, perhaps suggesting the government would like to quietly built bridges. It is up to both sides now to see if that is attainable.

PressProject

Cyprus' Aphrodite Holds 12% More Natural Gas Than Initially Predicted

The Israeli companies Delek and Avner, which together with the American company Noble have the exploitation rights for the Aphrodite plot (or Plot 12) of Cyprus’s Exclusive Economic Zone (EEZ), stated recently that the natural gas deposit in the plot is 12 percent larger than initially predicted. The companies, says a report from Greece's state run news agency, made the assertion in an announcement at the Tel Aviv stock exchange.

According to the revised estimate issued by the two companies, the deposit holds 4.54 trillion cubic feet of natural gas.

Delek and Avner add that their goal is to include the Aphrodite plot in wider plans for the exploitation of the Israeli ‘Leviathan’ deposit and that, given the small size of the Cypriot market, the bulk of the fuel will be sold on the international market.

Source: AMNA

Imperial report - Countries can learn from Cyprus' 2013 economic crash

In March 2013, Cyprus agreed to a €17 billion (£13.42 billion) international bailout by the International Monetary Fund (IMF), the European Central Bank (ECB) and the European Commission (EC). The magnitude of the bailout was 100 per cent of Gross Domestic Product (GDP) and also involved a bank bail in. This is when the borrower's creditors are forced to bear some of the burden by having a portion of their debt written off in order for the bank to have sustainable level of debt.

The package of measures was aimed at preventing the country from facing the prospect of bankruptcy and becoming the first nation in the European Union to be forced out of the single European Currency, following the country's large debt problems.

Researchers from Imperial College Business School and the University of Cyprus carried out an in-depth analysis of why Cyprus needed to be bailed out to explore what lessons could be learnt from the crisis. According to the researchers, Cyprus suffered from overconfidence arising from around 35 years of almost continuous and robust growth. This resulted in the Cypriot government making poor choices in regards to public finances, such as rapidly increasing public spending in welfare, and ultimately delays in reaching a bailout agreement, which affected the economy.

The researchers state in the study that the Cypriot Government's delay in taking action to avert the crisis was a mistake, which was compounded by the fact that it was too slow to ask the EU for help. The team says that the Government should have negotiated assistance in the summer of 2011 or summer of 2012, instead of completing the negotiations in March 2013. This delay meant that the European Central Bank had to increase the amount of money - called Emergency Liquidity Assistance (ELA) – it lent to Cyprus to keep the banking sector afloat. The impact of the delay meant that unemployment grew from around eight per cent in July 2011 to exceeding 15 per cent by March 2013.

In the lead up to the crash, the Government had also introduced financially unsustainable policies that contributed to the crisis. For example, from 2008 the Government increased social security spending on a range of initiatives such as non-means-tested housing subsidies, which were aimed at helping the elderly on lower incomes cope with rising costs, but also had the unintended consequence of helping those who were better off. Over a period of four years, the debt to GDP ratio rose from 48 per cent to 78 per cent. This caused an unsustainable increase in government deficits in a short period of time.

The researchers also found that the Central Bank of Cyprus (CBC) did not recognise the rapid increase by other banks in house lending.

Demand for real estate from domestic and international buyers from countries such as the UK and Russia rapidly grew, leading to increases in house prices, following the country's entry in the EU in 2004. Between 2010 and 2012, banks had steadily increased their lending to home owners by around 50 per cent of GDP. When the economy started to falter, house prices began to fall and by 2013 they had dropped by 5.4 per cent, according to the CBC. This rapid fall in house prices pushed households and corporations into negative equity, meaning their homes were worth less than the mortgages on them. As a result, the banks that lent the money with the houses as collateral were exposed to the risk of these loans not being paid back.

The researchers say that the housing boom and bust cycle experienced by Cyprus should be a cause for concern in countries such as the UK, where house prices are currently increasing, due to demand from foreign investors. According to the estate agent Savills, £7 billion of international money was spent on premium London homes in 2013, with just 20 per cent of that spent by UK citizens. Two thirds of the properties bought by international buyers were as investments.

Despite a fall in house prices in September, the UK's biggest property website Rightmove predicts that prices will soar by 30 per cent over the next five years to an average of £318,000 in England and Wales, and more than £715,000 in London.

Professor Alexander Michaelides, co-author of the report, said: "Cyprus enjoyed around 35 years of almost continuous and robust growth with a booming housing market, foreign investment and tourism. However, our research shows that from 2010, Cyprus's debt problems were growing and the government was slow to respond to the crisis. The result is that Cyprus faced the real prospect of bankruptcy and being forced out of the single European Currency. In order to prevent crises of this magnitude standard macroeconomic policy advice applies: keep government deficits under control; ensure strong corporate governance in large banking sectors; beware of volatile capital flows such as large deposits being paid into bank accounts and then being quickly removed, and of rapid increases in house prices. Our findings can be used by governments of countries in and out of the Eurozone to learn lessons about how to prevent and manage crises effectively."

The team also found that bad political decisions at the European and local (Cypriot) level resulted in inadequate understanding of the magnitude of the crisis. For example, in October 2011 the EU member states including Cyprus agreed to the Greek private sector initiative (PSI), when member states agreed to write off around 78 per cent of the value of governmental bonds they were holding in order to reduce Greece's overall debts. This decision had a negative impact on Cyprus' banking sector, which was invested heavily in Greek government bonds. They had to write a large proportion of these debts off, which had a negative impact on their balance sheets.

The researchers used data from the Central Bank of Cyprus, European Central Bank and Eurostat, which provides statistical information to the institutions of the European Union, to form their conclusions.

*Note: This report was published in the journal of Economic Policy. 

Greece & Cyprus May Take Legal Action Against Turkey

While briefing the parliamentary Standing Committee on National Defense and Foreign Affairs on the latest developments in the Eastern Mediterranean, Foreign Minister Evangelos Venizelos did not rule out the likelihood for Greece and Cyprus to take legal action against "Turkey's extreme, blatant and provocative stance which violates international legality/". He said that Ankara's stance and provocative actions in the Eastern Mediterranean prove that it does not respect international law since it decided to press forth and send the Turkish research vessel 'Barbaros' in Cyprus' continental shelf.

     "Our reaction so far is politically strong, but may assume a legal nature as well," he said.
     "Turkey has no substantive argument and there is no reason for concern as regards the mineral resources, which will belong to the central government that will safeguard the rights of both sides - Greek Cypriots and Turkish Cypriots alike - in a way that will be not only equal but also friendlier to the Turkish Cypriot side to be able to advance financially and rise to an equal status," added Venizelos.

The Greek Foreign Minister noted that the positive solution of the Cyprus issue is the catalyst for the Greek-Turkish relations, while he pointed out that the Greek side has never abandoned its steadfast position that Turkey's European prospect depends on its (the Cyprus issue) solution.

     "We continue all contacts on all levels in all 58 exploratory rounds. We have never abandoned the dialogue with Turkey in the context of the foreign policy that has been shaped in the past 40 years," Venizelos concluded.

Greek Reply To Turkish War Threat - We Have Our Own Rules of Engagement!

The Turkish government apparently authorised the county’s navy to implement recently amended Rules of Engagement to alledgedely "deal with" the tensions over energy exploration in the eastern Mediterranean, press reports from Ankara said on Sunday. Speaking at the Eastern Mediterranean Military Exercise (Blue Whale-2014), hosted by Turkey, Bostanoglu sent a chilling warning to Greece and Cyprus. He said that the Prime Minister of Turkey Ahmed Davutoglu handed the Rules of Engagement to the Chief of General Staff and the Chief of Staff then passed them on to the Naval Forces Command.

In simple terms, Turkey has prepared itself for war, and Bostanoglu left it to be understood that Turkey will not stop with its activities in the eastern Mediterranean, while he also had the audacity to state that Turkish forces will keep a close eye on Greek Cypriot oil research vessels in Cyprus' very own EEZ.

     "We will act in line with these Rules of Engagement in the event we face a situation over this issue” he said and added: “Our naval forces elements will continue their mission of situational awareness in the region.” 

The Vice Admiral stated that Turkey’s Rules of Engagement, which had been modified in 2012 when a Turkish fighter jet was shot down by the Syrian army, would apply to Naval forces if there was any disturbance over Cyprus.

     “The Turkish Naval Forces is providing support and close protection to the Barbaros Hayrettin Paşa Research Vessel. On the other hand, it continues to keep the drill ship hired by the Greek Cypriot administration under surveillance from nine kilometers’ distance. The order given to us for the moment is not to enter into this nine-kilometer area. That’s why no incident of harassment or disturbance has occurred,” he added.

In Athens, the Greek government attempted to downplay the comments and left it to be understood that there were made for Turkey's own domestic consumption as a response to the signing of the Cairo Declaration between Greece, Cyprus and Egypt one day earlier.

(It should be reminded that the joint communique that was issued by all three nations on Saturday urged Turkey to respect the sovereignty of the three countries as well as to cease its provocative surveys and similar future activities in Cyprus' EEZ.)

On Monday, President of the Republic Karolos Papoulias would receive Minister of Foreign Affairs Evangelos Venizelos in order to discuss all the recent developments in our foreign policy. Undoubtedly, the recent trilateral summit in Cairo with Egypt and Cyprus will be at the top of the agenda, along with the delineation of Exclusive Economic Zones.

A short while before the meeting, a report on defencenet, citing Pentagon sources, said that Greece also released its own Rules of Engagement (answering Ankara's threats of war). The report said that the focus is now on the southeastern Aegean and especically in the area of Kastelorizo. ​​

     “Greece also has its own Rules of Engagement, approved by the Prime Minister and the Cabinet, not only for the Aegean Sea but also for the South-East Mediterranean in defense of Greek national interests. It would a surprise for us if  Turks had not such rules,” the report on defencenet said.

Between Oct. 20 and Oct. 23, the Russian, Israeli and Greek Cypriot navies conducted a joint naval exercise covering air defense, underwater attacks and anti-submarine operations and developed joint operational procedures. The Russian anti-submarine vessel Kulakov, the flagship of Russia's Mediterranean fleet, and Novorcherkassk, a landing vessel of Russia's Black Sea fleet, participated in these exercises, during which live rockets were fired.

NATO and Turkey were quick to respond. The low-profile "Blue Whale" exercise by a small Turkish naval element and a US logistics ship will be repeated with much larger participation Nov. 6-14.

A report in Al-Monitor claims that Comparing the two exercises, it's notable that while the Russia-Israel-Greek Cypriot joint exercise focused on undersea warfare, NATO’s will focus on surface and underwater reconnaissance, surveillance and anti-submarine warfare. In short, while Russia is trying to develop its military capacity to operate in the eastern Mediterranean without being detected, NATO is working to develop ways to detect Russian moves in advance

Turkish military sources who spoke to Al-Monitor on condition of anonymity drew attention to several important points. They said that military activity in the eastern Mediterranean has increased to dangerous levels since October. It has become almost routine for warships of rival countries to try to force each other to alter their courses in international waters, send low-altitude flights over rival warships, instigate dog fights in the sky and lock weapons-guiding radar onto each other's vessels. All these point to heightened risks of clashes in the region.

To sum it all up, the Syrian crisis, the Israeli-Palestinian problem, the continuing division of Cyprus, disputes between Israel and Lebanon and between Turkey and Greek Cypriots on the exclusive economic zone and disagreements on resource rights in international waters are all heating up the eastern Mediterranean and jeopardizing the security of critical maritime trade routes. Regional rivalries over $1.5 trillion worth of hydrocarbon reserves is gradually militarizing the issue. The global competition between Russia, which wants to preserve its interests in the Mediterranean, and NATO, which wants to avoid a Ukraine-style fait accompli, are intensifying the conflict. States with interest in the area each appear to consider the eastern Mediterranean "their waters" and will try to impose their views through both diplomatic and military moves.

One can only hope that the pilots of rival air forces and the captains of the warships that frequently encounter each other in the eastern Mediterranean will continue to be not only skilled professionals but also astute politicians with honed diplomatic skills.

Combined reports from: enikos.gr, Hurriyet, Al-Monitor, ANA-MPA and ProtoThema.gr

Hey Davutoglu Take Your Imperialistic Ideas & Shove Them You Know Where!

By Sener Levent) Cyprus' Politis - How dare they insult us and make fun of us? And yet, none of us comes forth to put them in their place. Everyone swallows and digests whatever they place in his large intestine. This man considers our land as his own domain. As if it is inherited property from his father. “If you so wish, we can discuss the scenario of a two-state solution”, says (Turkish PM) Davutoglu to the Greek Cypriots. Which means, the southern part of Cyprus is yours and the northern part is ours.

He begs them, saying “if indeed you think in such terms, then come to the table, let us sit down and make a deal”. Ahmed Davutoglu said this. The son of Davut, Mr. Ahmed. Where does he come from? From Turkey. He is not a Cypriot. Then, who has given him the right to speak about Cyprus? Cyprus is our homeland, Mr. Ahmed. Ours. The Cypriots. Not yours. You cannot decide about what we will do and not do here. We decide. You mind your own business. Because of you, and the likes of you, Turkey is on the verge of a partition. Go to save her, from now on, if you can. Just think, one telephone call from Obama was sufficient. You made a huge 180 degree turn. As you were heading for the Cape of St. Andreas, you turned at Yialousa and went to Tera. And now you come for a song and dance? Because you were unable to bring Assad to his knees, you are pouring your spleen on Cyprus? Your power was not sufficient to force Assad, and you will force [President of Cyprus] Anastasiades? Please keep this between us, but Anastasiades brought this on himself. For all these slaps that he received from you. He flattered you too much. So he deserves such a response from you.

Look Mr. Ahmed, the last Ottoman Grand Vezier. Pay attention! Do something! Because I believe that not even your own ears listen to what comes out of your mouth! You say that “the sea bed and the exclusive economic zone of Cyprus belong to both her communities”. So, if they belong to the two communities, what is this to you? What has happened to you? What business do you have in these seas? Who gave you the right to speak on our behalf? Mr. Dervis [Eroglu, the president of the puppet regime in occupied Cyprus, an entity recognized by no other country except Turkey, whose unilateral declaration has been condemned by the UNSC 31 years ago]. But Mr. Dervis is your salaried employee here. You pay him! After all, is it not you that has been boasting for so many years that you are footing the bill for our upkeep?

Then, what is all this circus? Since when do you demand and get authorization from one of your salaried employees? Is not the administration here under your authority? Everyone knows that you have been the occupying power for forty years now, in this part of the island, and you are under the impression that we are the only ones who do not know? Do not be fooled by those of us who express their gratitude to you. There is no one who wishes two states in Cyprus, and anything else along this line. The Cypriot people wish a united Cyprus. From Rizokarpaso to Paphos. If this does not happen now, it will happen for sure at some day in the future. There is no possibility that the Cypriots will never come to their senses!

This chauvinism, this craziness will end on some day, for sure.

You say that the exclusive economic zone belongs to both communities, but you do not seem to comprehend it yourself. The Greek Cypriots never said that it belongs only to them. Yet, even if there is no solution to the Cyprus problem, thanks to you, and you have postponed the return of Varoshia [the city of Famagusta outside the medieval walls, whose return to its rightful inhabitants Turkey was asked to allow, but has not, since the pertinent UNSC resolution of 1977], do not think that they will let us smell any of the benefits of the solution to the problem, before the actual solution takes place. Hands off Cyprus!

And you can take your two states, and you know where you can stick them! (Πάρε τα δύο σου κράτη και βάλε τα εκεί που ξέρεις!)

Sener Levent is the editor of the Turkish-Cypriot newspaper Afrika. He has been repeatedly threatened and heavily fined by the Turkish puppet regime of occupied Cyprus. His long-time colleague Kutlu Adali was murdered in 1996 in occupied Cyprus. His murder remains a mystery, though it was well known then that he had been threatened several times by the occupation authorities and their roughnecks. Turkey has been condemned by the European Court of Human Rights for the handling of the murder investigation of Adali, and damages were awarded to his widow. Recently, Levent has claimed, in the same column of Politis, that Adali had actually uncovered evidence that special forces from Turkey had come to Cyprus in 1995, right before the inquiry into the missing Cypriots who were American citizens by the late Richard Holbrook, and excavated mass graves near the St. Barnabas Monastery, and then dumped all the bones of the dead into the sea, so that they could never be found!

First published in Greek, in the Greek Cypriot newspaper Politis, on the 23rd of October, 2014 –
http://www.politis-news.com/
First appeared in English on Mignatiou.com
http://mignatiou.com/2014/10/ahmed-take-them-and-you-know-where-you-can-stick-them/

Putin Says Any Violation of Cyprus' Sovereignty is Unacceptable!

During a meeting with Cyprus President Nicos Anastasiades on the sidelines of the ASEM meeting in Milan on Thursday night, Russian President Vladimir Putin said that any violation of the sovereignty of Cyprus is unacceptable.

According to a statement from Cypriot government spokesman Nicos Christodoulides, the two presidents had an “extensive discussion in a friendly and cordial atmosphere” at a dinner that was hosted late on Thursday night by the President of the Italian Republic for delegates participating in the Asia – Europe Summit.

According to the Cypriot government spokesman, talks centred mostly on the bilateral relations between Cyprus and Russia, EU-Russia relations as well as the current phase of the Cyprus problem with emphasis on the latest developments (as these were shaped as a result of the Turkish NAVTEX with regard to the Exclusive Economic Zone (EEZ) of the Republic of Cyprus.)

     "Putin reiterated Russia’s principled position both as regards the solution of the Cyprus problem and the inalienable right of the Republic to take advantage and exploit its natural resources within the EEZ,” noted Christodoulides. 

He also said that both Presidents agreed to hold another meeting in the near future (depending on the developments that may or may not unfold).

US: Cyprus has right to use its EEZ... but should share resources

Responding to questions on Turkey`s provocative action in the Eastern Mediterranean relating to Cyprus, US State Department spokesperson Jen Psaki said on Monday that the Washington recognises the right of the Republic of Cyprus to develop its resources in its exclusive economic zone, but they should be shared between the two communities.

     "We recognise the right of the Republic of Cyprus to develop its resources within its exclusive economic zone. We continue to believe that the natural gas and oil reserves of the island, as well as all its resources, must be fairly shared between the two communities in the framework of a comprehensive settlement," she said.

She also noted that it was important to avoid activities which could increase tension in the region and reiterated US support for UN efforts to reunite Cyprus in a bizonal bicommunal federation.

PITIFUL - 20,000 icons of Cyprus are in the hands of smugglers

Until 1974 there were 575 churches and other Christian shrines on the territory of Cyprus which is now illegally occupied by Turks.

During the Turkish invasion and the subsequent occupation in Cyprus many churches were destroyed. Others were adapted for the use of livestock businesses: stall boxes as well as silage, building materials and technical equipment depots. Some of them were simply sacked or bulldozed (and from what we at HellasFrappe learn others were even used as toilets).

Around 80 temples were converted into mosques. 20,000 icons, dating back to the 12th-20th centuries, vessels and mosaics were stolen from 575 churches.

As a result of the strong foreign policy pressure and the interference of the UN, the situation with the icons has begun to improve over the past year. Nevertheless, ancient churches are gradually crumbling due to the lack of any restoration work since 1974 to the present time.

In order to understand what happened and is happening today in this region, the Greek website Romfea addressed the Church of Cyprus.

Bishop Porphyrius of Naples has referred Romfea to Priest Savvas Hagiionas, representative of the Synodal Committee for the Monuments on the occupied territory. According to him, about 50 churches, which are of international cultural importance, are absolutely inaccessible, as they are situated on the territory of Turkish military bases.

In collaboration with international organizations, some of relics were returned.

In February 2012, the 12th century wall paintings were returned from Houston (Texas, USA).

In October of last year, dozens of relics, for which the Church had been searching from 2004 to 2013 through various agencies, were brought from München (Germany).

     “Now we demand the return from Zurich of a 16th century icon of the Savior and an iconostasis of the same period, which belonged to the Antiphonitis Monastery (Kalogrea village),” said Fr. Savvas.
     “The Church will not cease its attempts to return the stolen relics!”

Pravoslavie.ru

Greece-Cyprus-Egypt Alliance: New Pillar of Stability in Mediterranean

The Foreign Affairs Ministers of Greece, Cyprus and Egypt (Evangelos Venizelos, Ioannis Kasoulidis and Sameh Shoukry, respectively) issued a joint communique at the weekend, after holding a meeting in New York. In their communique, the Ministers praised the progress of the ongoing negotiations regarding mutually beneficial sectors, while it also points out that this new alliance could turn out to be a new pillar of stability in the Mediterranean.

All three FMs had the opportunity to evaluate and discuss latest developments in the region and underlined the importance of cooperation, particularly in the energy sector.

Both Greece and Cyprus offered their support to the Egyptian government and its people, but also praised the efforts made to adopt a new Constitution via referendum between January 14-15 which press reports claim aims to entrench basic human rights.

On the issue of Cyprus, all three men lauded the recent appointment of Espen Barth Eide as UN Special Envoy to Cyprus and repeated their commitment towards finding a solution to the Cypriot dispute, based on UN Security Council resolutions.

Turning to matters in the Middle East, and specifically to Gaza, all three Ministers stressed the importance of the two sides resuming negotiations in order to come up with a mutually-accepted solution that can sustain peace. The FMs also expressed their hope that the talks scheduled to begin in Norway on October 12th is going to work towards this goal.

On other matters, and especially on the developments in Iraq and Syria, particularly regarding human rights violations and terrorist activities, (minority groups being persecuted by ISIL), the ministers noted the importance of collective action under the UN, but at the same time warned that other extremist groups are also operating in the region.