A European People`s Party extraordinary Summit, held in the southern coastal town of Limassol Friday, conveyed a message of solidarity to Cyprus which is currently under severe financial stress.
EU Heads of State and Government and party leaders also expressed support to Nicos Anastasiades, whose Democratic Rally party (DISY) is an EPP member, and he is a presidential candidate for February’s elections.
German Chancellor Angela Merkel said the aim for Cyprus is twofold, noting that Cyprus should proceed with its own commitments and reforms but on the other hand “we should show solidarity” which is one of the EU fundamental principles.
Expressing support to the candidacy of Nicos Anastasiades, Merkel added “I came here today to make clear that our partner in the EPP will win the elections.”
Irish Taoiseach Enda Kenny, whose country took over the EU Presidency from Cyprus, said in statements to the press that Cyprus` financial difficulties “need to be addressed,” adding that before a bailout could be agreed analysts should assess the scale of the problem.
Following Cyprus` application for financial support from the European bailout mechanism, the Cypriot authorities and the Troika have agreed in principle on a Memorandum of Understanding on the conditions for the financial aid estimated to reach €17.5 billion. However the package has not been agreed pending a due diligence review that would assess the total capital needs for the Cypriot banking sector. Cyprus` two largest banks, with assets amounting more than twice of the island`s GDP, have sought state support to replenish their regulatory capital following massive write downs of the Greek bond following the haircut.
“Truly Cyprus has a financial problem here and that needs to be addressed and in order to address this we have to assess the scale of the situation …. and that is ongoing with the Troika and some other independent analysts of what the financial problem is,” Kenny said.
Greek Premier Antonis Samaras said Cyprus could weather the storm, adding as Greece, Cyprus will eventually manage to face the grave financial challenges.
“This will be the message, this will be the effort of the European People`s Party on Cyprus, precisely in order to overcome these obstacles,” he added.
On his part Finland`s Prime Minister Yyrki expressed his full support to Cyprus` efforts to tackle the big financial challenges facing the country.
Speaking earlier today at the Summit, Katainen said he is sure that these challenges could be met with a new, strong and focused leadership, which could enhance confidence to the country, something which could have a positive impact.
On his part Romanian President Traian Basescu expressed hope that Cyprus will succeed in tackling the financial crisis as Romania did two years ago.
He also said that he is in Cyprus to support Anastasiades` candidacy in the upcoming presidential elections.
The EPP meeting concluded in late afternoon.