“The future of Cyprus is bleak”, estimates Hari Tsoukas, Professor of Strategic Management at the University of Cyprus and Professor of Organization Studies at Warwick Business School of U.K., in an interview to the Voice of America.
As he stressed, “with the recent decision taken for the rescue of Cyprus a disaster was averted, but the Cypriot economy is expected to fall into greater recession”. The banking sector, noted Tsoukas, is one of the major pillars of the island’s economy and the expected collapse of economic activity will cause a heavy blow to the banking system. The Cypriot people will enter a phase of “abrupt adjustment and in short term the country will suffer”.
The Professor of Strategic Management stressed that in the near future, Cypriot citizens are expected to experience the increase of unemployment, which “is very likely to double its rates over the next months”. Another unpleasant consequence expected, is the “deduction of 25% of the GDP from the Cypriot economy”.
He also said that social conditions comparable to those in Greece are expected to be noticed also in Cyprus, as unemployment and generally the poverty of the population will increase.
According to Tsoukas, none of the political parties of the island is going to benefit from this situation. As he stated, “the previous (left-wing) government started the negotiations and the current (center-right) government signed the agreement”. What is expected is a polarization in the political scene with increase of the voices that would demand the country’s exit from the euro and the return to the Cypriot pound.”
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