European solution to avoid Cypriot bankruptcy

The EPP Group considers that the agreement reached by the Eurogroup and the Cypriot authorities on the key elements for a future macroeconomic adjustment programme for Cyprus is better than last week's option and averts the country from disorderly bankruptcy.

"We acknowledge that the decision is still hard and far-reaching for the Cypriot people. We welcome the fact that there is an agreement that offers Cyprus a European solution. The agreement will assist Cyprus to overcome the problems accumulated over the past years. Let us not forget that two years ago, the former Cypriot Government refused the help offered by the European Commission and preferred the Russian loan", said EPP Group Chairman Joseph Daul MEP and Vice-Chairwoman Corien Wortmann-Kool MEP.

"I am confident that the new Cypriot Government, under the responsible leadership of President Nikos Anastasiades, will do its utmost to enforce everything needed in order to restructure the Cypriot economic model in such a way that will lead to sustainable growth with sound public finances and will safeguard financial stability", Chairman Daul said.

Corien Wortmann-Kool MEP, Vice-Chairwoman of the EPP Group responsible for Economy and Environment, said: "The state will have to reform its excessive large banking sector in order to be sustainable. Next to that, structural reforms are needed in order to build a strong foundation for the economy and secure sustainable economic growth in the long run.

"The EPP Group calls on the European Commission to further explore all available means, such as already-existing funds and programmes, to help the Cypriot economy start growing again. As soon as we have the Banking Union in place, this kind of situation can be better dealt with and will not be repeated", Wortmann-Kool added.