Journal Article
Cyprus: Economy without Business Model? (original publication German only)
Wirtschaftsdienst, 93 (8)
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Europe
Economic & Financial Crises
European Union & Euro
Cyprus appeared to be a South European success story until the beginning of the economic and financial crisis in the year 2008. But in early 2013 the country was at the edge of bankruptcy, the leading banks were illiquid, the economy was shrinking and unemployment was rising. Against this background it is analyzed which factors contributed to the Cyprian crash and how the country could accomplish a change for the better. Due to the lack of industrial competence it is suggested to revive the Cyprian service industry in the course of a reunification of Cyprus. A reunification could rebuild confidence lost during the crisis, create synergy effects in tourism and facilitate natural gas production.
