Timothy Ash* The Financial Times
Greek Cypriots must be thinking that with friends like these (the EU and Russia, both seeking to extract their pound of flesh for any bail-out), who needs enemies?
Well, what if Cyprus begins to think outside the box, and what if it goes to its erstwhile enemy, Turkey, for assistance?
How about this: Turkey provides €7bn in assistance, saving Cypriot savers from the chop in exchange for Cyprus agreeing to the terms of the 2004 Annan peace plan for the unification of the island.
In return for its cash, Turkey would get agreement on the peace plan it backed back in 2004 and which was supported then by two thirds of Turkish Cypriots in an island-wide referendum. Admittedly, it was rejected by three quarters of Greek Cypriots but this was in no small part due to the intransigence of the then Papadopoulos administration.
By so doing, Turkey would save a very big chunk of the substantial aid (and significant military spending) it pumps into northern Cyprus every year, and the north would gain access to EU structural funds. Turkey would also remove a big Achilles heel in terms of its own EU accession bid, stalled by disagreement over the divided island.
