Global Crises
Northern Cyprus already unable to cope with her economic difficulties due to the unsolved Cyprus problem coupled with wrong economic management and political corruption, is now getting her share from the deepening global economic crisis unguarded.
Turkish Lira has begun to lose its value continuously and hence on one hand the import prices of consumer products are increasing and on the other hand the inputs to the limited local products are becoming more expensive.
Citizens are baffled and are wondering how they are going to keep up with their foreign currency instalments on; their bank loans, rents, property, car and similar basic needs.
Our already limited goods and services production will decline due to the global economic crisis and consequently our tourism and academic income will diminish thus unemployment will soar.
As if these were not sufficient, the government in panic to reduce her financial deficits created by their mismanagement of the economy is levying more taxes, increasing civil service charges, increasing electricity and petrol prices hence enhancing the incubus.
Our people are tired and sick of high rate taxes and service charges, continuously worsening unproductive civil service. At this stage the government should quit this insusceptible attitude and take measures. Despite all, there are things that can be done provided there is will and courage.
- EURO should be accepted as the official currency. Under the present conditions neither the citizens nor the enterprises can plan their daily or future programs. EURO will facilitate the economic integration with the stronger south Cyprus economy.
- Ways to promote economic cooperation and necessary economic integration with south Cyprus should be sought. This will be in benefit of both economies. For this reason the ports in the North should promptly be harmonised with EU and opened to EU supervision and control.
- Government expenditure should be reduced and services productivity increased.
- Bureaucracy minimised and should there be any new investors along with the current investors, obstacles are removed and increase in unemployment prevented.
- State should take austerity measures and all expenditures are transparent so that mismanagement, extravagance and those responsible for wrong doings made accountable.
- Demographic structure is restored and in all services, particularly in education and health “citizen-tax-benefit” relationship preserved.
- Partisan applications must be stopped, instead of political party or individual’s economy community’s economy should be pursued.
- Legislation of Competition Law together with other EU harmonised laws will enforce the government in spending the limited resources to be more rational and the consumers will buy better quality goods cheaper.
It is no time for “this is how it is and how it goes” because this boat cannot be floated anymore. It is impossible for the Turkish Cypriots to carry this burden any longer.
Ali Erel
President - Cyprus EU Association